Australian Police Seize Luxury Cars in Tobacco-Smuggling Bust

 

Australian police forces have seized hundreds of thousands of dollars in cash and a collection of luxury cars in connection with illegal-cigarette busts in Sydney and Melbourne. The seizures are connected to an investigation of an organized-crime network that was working covertly inside of an Australian logistic company in order to smuggle lucrative illicit tobacco cargoes into the country. 

Australia has some of the world's highest taxes on tobacco products, and a pack of cigarettes can cost upwards of US$30 - more than three times the price in many U.S. states. At these prices, the incentive for tax evasion is massive, and organized crime groups have taken up smuggled tobacco as a new sideline to complement their other illegal-drug businesses.

Unbranded, illegally-imported loose tobacco - "chop-chop," locally - sells for a fraction of legal cigarettes on the street in Australia and is capturing a growing share of a growing market. According to Tobacco Insider, more people smoke cigarettes in Australia today than at any point in history, and about half are buying smuggled tobacco. Despite record levels of tobacco seizures (2,000 tonnes in FY2024-25), the problem is not going away.  

For Australia, this is a four-sided problem. It undercuts tax revenue from tobacco sales; it makes tobacco more affordable and accessible, leading to rising numbers of healthcare-cost-intensive smokers; it strains the law enforcement resources needed to fight meth and cocaine, in which Australia is a world leader in per-capita consumption; and it fuels organized crime and corruption. 

The latest bust illustrates the reach of that corruption, and the riches that go with it. After seizing two containers of cigarettes in Sydney and Melbourne with a combined 1.9 million cigarettes, ABF and New South Wales Police forces searched three warehouses and a residential property. The search revealed three luxury cars, including a Lamborghini Huracan and an Aston Martin DBX crossover SUV; US$185,000 in cash; another 700,000 cigarettes and 5,500 vape cartridges; 10 credit cards; and 3,000 crack pipes.

The ABF said in a statement that these items were accumulated by a tobacco import ring, which had smuggled its goods into the country by "exploiting key members of freight forwarding and logistic companies." 

“Every detection, every intercept, every shop shut down, warehouse raided, and car seized, is a disruption to those trying to profit from this crime and will continue to apply pressure to their business models. This is why the Illicit Tobacco National Disruption Group has been established to target and dismantle mid-level criminals and enablers who exploit Australia's supply chain," said Commander of Customs Enforcement Graeme Campbell in a statement.