Australia Shows the Downside of the WHO Approach

14th Aug 2026

Australia has long been praised as a global leader in tobacco control. With extremely high taxes, strict restrictions and policies closely aligned with WHO recommendations, the goal was to reduce nicotine use. The result? According to official estimates, the black market now accounts for around 80% of all tobacco and nicotine consumption. More and more Australian politicians are now calling for a change of course.

Politicians Admit the Policy Has Failed

Criticism is no longer coming only from businesses and researchers. New South Wales Health Minister Ryan Park has urged the federal government to reduce tobacco taxes, arguing that the policy has had the opposite effect of what was intended.

Liberal MP Mary Aldred has also strongly criticised the current approach, describing it as a “failed experiment” in which smokers are effectively being pushed by tax policy to fund organised crime.

When Prohibition Fuels Organised Crime

Australia now has some of the highest tobacco taxes in the world. In March 2026, the excise tax reached around AUD 1.53 per cigarette. At the same time, official estimates suggest that illegal products now dominate the market. Tax revenues are falling, while smugglers and criminal networks are taking over sales.

The consequences are becoming harder to ignore. In recent years, hundreds of fires, threats and violent incidents have been linked to the illegal trade in tobacco and nicotine products.

Markus Lindblad, Communications Director at Pouch Patrol, says the development should not come as a surprise.

“When regulation focuses on blocking legal alternatives instead of addressing real consumer behaviour, the market does not disappear. It simply moves underground.”

He also warns that overly restrictive rules can create exactly the problems that policymakers are trying to solve.

Argentina Changes Direction

While Australia struggles with the consequences of a highly restrictive approach, Argentina has started moving in the opposite direction. After years of strict policies, the country is now opening the door to a more risk-based regulatory framework, where less harmful alternatives can play a role in public health efforts.

The growing criticism from Australian politicians may be the first sign that Australia could eventually follow Argentina’s example. Perhaps the WHO should also take note and pay more attention to harm reduction strategies.

“It is very encouraging to see Argentina moving away from symbolic politics and total bans.” says Lindblad.

A Warning for the Rest of the World

Australia was meant to become the global model for tough tobacco control. Instead, it has become a warning sign of what can happen when policy focuses more on bans and punishment than on how people actually behave.

When demand remains but legal alternatives disappear, criminal groups quickly fill the gap. The question is no longer whether Australia’s strategy has created problems. The real question is how many other countries will repeat the same mistake before reaching the same conclusion as Argentina: public health policy must work in the real world, not just on paper.