Cost of cigarettes in Australia: Prices and tax laws (2025)

How much does a pack of cigarettes cost in Australia? A timeline

The cost of cigarettes in Australia has steadily increased over the past few decades, driven largely by taxation aimed at reducing smoking rates.

Early years and popular brands

Since the 1940s, the New South Wales Retail Tobacco Traders’ Association has tracked the wholesale and recommended retail prices (RRP) of cigarettes from both international companies and smaller retailers. 

In the 1940s, ‘50s, and ‘60s, Craven A Cork Tip 20s was one of the most popular brands, and it remained available as recently as 2015.

Rapid price increases post-1990s

From 1990 to 2000, the price of Craven A 20s nearly doubled. By 2015, the cost had increased 4.5 times to $22.72. 

This trend was consistent across other popular brands. For example, the price of Winfield cigarettes increased ninefold between 1980 and 2020, nearly tripling from 2010 to 2020.

The history of tobacco excise taxes

There have been a number of major changes in tobacco taxation from the 1940s to 2020.

Tobacco taxes from 1901 to 1990

Since the 1901 Excise Act and Customs Act, the federal government has imposed excise taxes on Australian-made tobacco products and customs duties on imports.

Initially, these taxes were based on the weight of the tobacco products, including the paper and filter but excluding packaging.

Key changes in the 1980s

In 1983, tobacco taxes were linked to the Australian Consumer Price Index (CPI), causing automatic biannual increases. The duty rates for cigars and non-cigarette tobacco were also adjusted, with the latter seeing a $5 per kilo increase. 

Between 1984 and 1986, the tax rate for tobacco products increased further.

Equalisation of taxes

Previously, Australian-produced tobacco was taxed at a lower rate than imported tobacco. However, in 1994, excise taxes and customs duties were equalised.

Tobacco taxes from the 1990s – 2010

In the mid-1990s, major state fees and taxes were introduced, significantly raising cigarette prices. Health bodies successfully lobbied for federal excise tax increases, leading to several ad hoc tax hikes between 1990 and 2000.

Notable increases included a $5 hike in 1992, a 3% increase in 1993, and 5% increases in 1994 and 1995. 

The final planned increase of 5% in August 1995 was brought forward to May and raised to 10%. From 1999 to 2010, tobacco tax increases were limited to biannual CPI adjustments.

Cigarette taxes post-2010

In 2010, cigarette taxes saw a major increase, with a 25% hike in April. From 2013 to 2020, annual tax increases of 12.5% were implemented alongside biannual CPI adjustments. 

By 2021, the price of a leading cigarette brand was 8.5 times higher than its 1940 price, adjusted for inflation.

Recent and future increases

More recently, the government announced annual 5% price increases for cigarettes until 2026³https://www.news.com.au/finance/economy/federal-budget/tobacco-tax-to-increase-15-in-massive-smoking-vaping-crackdown/news-story/cc3b35234026e60a0647bea1394785dd. This means a pack costing $40 in 2025 will cost approximately $50 by 2026.

The price hike is playing a significant role in deterring people from continuing to smoke, or from picking up a cigarette in the first place. For example, the smoking rate among adults halved between 1995 and 2019⁴https://www.quit.org.au/fact-sheets/smoking-vaping-rates.

How much money will I save if I quit smoking?

For a 20-pack-a-day smoker, here’s a breakdown of the potential savings and health benefits at various milestones.

To work out your own potential savings, you can use our savings calculator.

One day not smoking

• Savings: $40
• Health Benefits: Blood pressure and heart rate normalise; improved circulation; reduced carbon monoxide levels; decreased heart attack risk.

Two days not smoking

• Savings: $80
• Health Benefits: Lungs start to function better; improved sense of taste and smell as nerve endings begin to heal.

One week not smoking

• Savings: $280
• Health Benefits: Reduced nicotine withdrawal symptoms; improved mood; increased antioxidants in the blood. This is certainly a milestone to note — smokers who make it one week without smoking are nine times more likely to successfully quit⁵https://www.painscale.com/article/how-quickly-does-the-body-recover-after-quitting-the-habit-of-smoking.

Two weeks not smoking

• Savings: $520
• Health Benefits: Easier breathing; reduced mucus production in lungs.

One month not smoking

• Savings: $1,200
• Health Benefits: Improved skin appearance; less yellowing around fingernails; clearer sinuses; better lung function and exercise capacity. 

Three to six months not smoking

• Three Months Savings: $3,600
• Six Months Savings: $7,200
• Health Benefits: Faster recovery from wounds and infections; improved mood; less stress; reduced coughing.

After one year not smoking

• Savings: $14,400
• Health Benefits: Lower risk of diabetes and certain cancers (liver, stomach, colon, rectum, pancreatic); risk of coronary heart disease is halved⁶https://www.hri.org.au/health/learn/risk-factors/smoking.

Lower-concentration vapes from pharmacies: A way out of cigarette smoking?

Unlike cigarettes, vapes sold in pharmacies (very different from the ones sold illegally in groceries, corner shops, and other establishments), are not affected by the tax hikes and increasing costs of cigarette smoking because they’re designed as a stop-smoking tool for motivated smokers trying to quit.

Lower-concentration therapeutic vapes (products with 20 mg/mL or lower levels of nicotine) do not require a prescription to purchase from a pharmacy for patients 18 years old and above (exc. WA and TAS). 

At around $12.50 per cartridge (which is roughly equal to around 20 cigarettes in terms of ‘puffs’), a weekly comparative supply of vapes would cost a pack-a-day smoker just $87.50.

By way of comparison, a pack-a-day smoker would spend nearly $300 on cigarettes, meaning that a straight transition to vaping can equate to savings of almost 70% – over $10,000 a year.