1 Aug 2026 · Smokzi
Why Cigarettes Cost So Much in Australia — and What 'Taxes Included' Means
Australian tobacco excise is among the highest in the world and rises twice a year. Here's where the money in a carton's price actually goes.
The biggest ingredient in the price is tax
Australia levies tobacco excise per stick, indexed and increased on a schedule set by the federal government, plus 10% GST on top of the lot. By the time a carton reaches a checkout, the majority of its price is tax. That's national policy — no retailer controls it — and it's why identical products cost dramatically more here than overseas.
What 'prices include all taxes' means at Smokzi
The price on the product page is the price you transfer — excise and GST are already inside it, shipping is free, and there is no surprise line item at checkout. When you compare prices anywhere, always check whether taxes and delivery are included; a low sticker price that excludes either isn't a low price.
Why cartons beat packets on value
Because excise is charged per stick, tax scales identically — but the fixed costs of retail don't. A 10-packet carton spreads handling and freight across 200 sticks, which is why per-packet prices in cartons consistently undercut single-packet retail, especially with free delivery.
The honest footnote
The cheapest cigarette is the one you never buy. Smoking is addictive and harmful; if the rising cost has you thinking about stopping, Quitline on 13 7848 is free, confidential and effective.
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Free tracked delivery Australia-wide · prices include all taxes · 18+ only.