Australia''s Tobacco Industry

Source from:  British American Tobacco (BAT) Australia  10/29/2012

The Australian tobacco industry makes a significant contribution to the economy in terms of government revenue, retail sales and employment.

Value of the industry

In terms of government revenue, the total tobacco excise tax collected in 2007/2008 was $A5.61 billion. [1] Cigarette and tobacco sales represent 2.86% of total retail sales.

Value of tobacco products to the Australian economy

The revenue and gross margins generated by sales of cigarettes and tobacco products comprise a major part of business for many Australian retailers, particularly small mixed businesses and tobacconists.

These goods also form a significant proportion of total sales for most major grocery retailers. Margins in 2009 vary considerably between different types of retailer from, on average, 6-8 per cent for tobacconists and supermarkets to 30 per cent for convenience stores.

Currently the number of cigarettes sold in Australia numbers approximately 22 billions sticks. Enditem