INDUSTRY NEWS
43
NATIONAL SOUTH AUSTRALIA
South Australian Tobacco Control Strategy 2021-25 On behalf of our 272 South Australian members, MGA provided important feedback to the SA Government in respect of the future structure of tobacco control in South Australia.
MGA stated its support for the first four key priorities and proposed key actions for the 2021-25 Strategy: 1. Social Marketing and Public Education 2. Evidence-based Smoking Cessation 3. Reducing smoking prevalence in Aboriginal communities 4. Smoke-free areas MGA emphasised that South Australia already has some of Australia’s strictest tobacco licensing retail laws, and adding any additional regulatory burdens to the system would add more costs and complexity to the Independent Supermarket sector. MGA also pointed out that the current SA Tobacco laws must be enforced to eradicate unsavoury activities such as the availability of illicit tobacco. The biggest challenge facing legitimate tobacco retailers in South Australia is the increasing rise of illegal tobacco sales. This issue is also eroding the progress being made to reduce tobacco consumption, particularly among the underage and indigenous cohorts. The latest KPMG report states that illegal tobacco represents 16.9% of total tobacco consumption costing $2.9 billion in lost tobacco excise, and States and Territories their share of lost GST.
Until the South Australian Government strongly enforces the existing laws and prosecutes those selling illegal tobacco, none of the actions outlined in the draft strategy can be effective. In SA, legitimate retailers of tobacco products who comply with the laws relating to the sale of tobacco suffer lost sales and profits because of illicit tobacco availability, impacting the viability of their businesses. Some of the actions the SA government is considering 1. Consider regulatory oversight of the number, type and location of tobacco and e-cigarette outlets, particularly near schools and in areas of social disadvantage. 2. Consider adopting measures to enhance the tobacco and e-cigarette licensing scheme to ensure best practice monitoring and oversight of sales and promotions. 3. Consider options to strengthen the regulation of gifts and benefits in connection with tobacco and e-cigarette sales, including benefits provided to retailers for selling certain products and bulk-purchase discounting for customers.
4. Examine options for strengthening controls on the promotion and sale of tobacco and e-cigarette products to young people, particularly at the point of sale. MGA has responded to this SA Tobacco Control Strategy inquiry by lodging a submission with the SA Government suggesting that SA’s tobacco restrictions are already adequately strict, and the only recommendation is for the SA Government to assist with the stamping out of illicit tobacco trade.
