ASH action funding tobacco control Australia


	ASH Action: Taxation and funding the fight against tobacco
	Tobacco is Australia's Number One cause of preventable death and disease - but what we spend on the fight against it doesn't reflect that. TOBACCO TAX NEWS on funding the fight against tobacco LATEST RESEARCH on tobacco funding, price and taxation issues RESOURCES Australia has a good record of success in tobacco control, our 2010 smoking rate (14 years +, at least weekly) down to 16.6% - but still almost 3m Australians smoke regularly. Each day in Australia, 50 people die prematurely from active or passive smoking - around 17,000 preventable, early deaths a year. Tobacco causes 12% of the national burden of disease, 20% of deaths in indigenous communities. It drains the Australian economy of over $31 billion a year in health and other social costs - at least four times the tax it raises. Research shows over 80% of smokers want to quit. Comprehensive, sustained anti-smoking campaigns overseas have reduced smoking rates well below the current Australian rate. The cost of achieving such a fall is more than offset by massive savings in health care costs - and the health benefits to smokers, their families and businesses. Government investment in reducing smoking has improved recently, but still doesn't match the scale of the problem. Per capita, Australian (federal + state/territory) funding of tobacco-free measures is still below comparable OECD countries (US, Canada, NZ). The strong economic case for better government investment in reducing smoking rates - and the huge benefits for governments, families, businesses and regional Australia - are set out in annual submissions to the Federal Government from Australia’s leading health organisations and medical colleges. *ASH and our allies support:* raising tobacco taxes and prices (see below); full funding for the Australian National Tobacco Strategy; overall (federal + state/territory) government funding for education and prevention strategies increased to a level of $10 per capita per year; federal funding for the national tobacco control campaign to be increased to $100m a year, with the majority of funds used to support social marketing; and sale of duty-free tobacco products to be prohibited in Australia. What should governments be spending on tobacco control? National Tobacco Strategy funding guidelines backed by all Australian governments Development of a National Preventive Health Strategy on Tobacco ASH submission to Preventative Health Taskforce, 2008 TOBACCO TAX After strong advocacy by ASH and other health groups, the Australian Government on April 29, 2010 announced a 25% increase in tobacco tax, raising the price of an average pack of 30 by around $2.20. Health groups have called for a second increase within two years, to raise price to 50% above the pre-May 2010 price, to bring Australia into line with international best practice and evidence of effectiveness (see NEWS, below). The 2010 tax rise was the first real-terms tobacco tax increase in a decade. It followed the Henry Tax Review - which also proposed ending duty-free tobacco concessions. See government announcement and Henry Tax Review 2010 and the decision welcomed in ASH media release 29/4/10 A further tax increase would be needed within the next two years to achieve international best practice - the government is yet to commit to this. Benefits of tobacco tax increases Evidence shows raising tobacco tax helps thousands of adults quit and prevents thousands of children from taking up smoking. Most of these people will otherwise die prematurely from tobacco diseases. Government leadership reinvigorates preventative health and helps prevent thousands of premature deaths; and delivers over a billion dollars in federal revenue – an extraordinary funding source for further investing in public health to offset projected costs of an ageing population. Tobacco giant admits: raising tobacco tax reduces consumption BAT Australia chief David Crow in the Plain Packaging inquiry, August 2011: We understand that the price going up when the excise goes up reduces consumption. We saw that last year very effectively with the increase in excise. There was a 25% increase in the excise and we saw the volumes go down by about 10.2%; there was about a 10.2% cent reduction in the industry last year in Australia. Hearing transcript 4/8/11 Tax rise brings dramatic surge in quitting The April 2010 tobacco tax increase led to a steep increase in quit attempts - with 300,000 quitting for good. 29% of smokers trying to quit in the three months before the rise jumped to 38% in the two months after. Sales of cessation products jumped almost immediately. See details below under NEWS. An equitable measure Increased excise helps disadvantaged Australians, who bear the brunt of deaths and disease caused by tobacco. It helps break the cycle of disadvantage by encouraging blue collar workers to quit. It's supported by the majority of these smokers. It helps reduce smoking rates in high-risk groups - like people with binge drinking, drug abuse and mental health problems. See latest research Strong public support General public support very high: Herald/Nielsen poll May 2010 (after April tax rise) of around 1400 voters showed 71% approval; equally strong support from ALP and Coalition voters. Sydney Morning Herald report 11/5/10 Earlier Newspoll survey showed 86% support tobacco tax increases if most of the revenue is allocated to health. Higher tobacco tax does NOT lead to increased smuggling Tobacco tax rises do not increase illicit trade, if accompanied by a modest increase in enforcement - despite the tobacco industry's scare campaign against a rise. See global study on tobacco smuggling Myth that higher duties leads to increased smuggling Feb. 2011: Very good article in Guardian UK by Deborah Arnott of ASH UK refutes tobacco industry furphy. Note that ASH Australia is not affiliated with ASH UK or any other "ASH" NEWS on tobacco funding, price and tax Mexico reaps 9% revenue benefit from tobacco tax rise November 2011: Mexico's revenues have been boosted by 9% in the year following its tobacco tax increase - scotching tobacco industry predictions of economic harm from the policy. Tobacco Unfiltered report 15/11/11 Tobacco giant admits: raising tobacco tax reduces consumption August 2011: BAT Australia chief David Crow in the Plain Packaging inquiry: We understand that the price going up when the excise goes up reduces consumption. We saw that last year very effectively with the increase in excise. There was a 25% increase in the excise and we saw the volumes go down by about 10.2%; there was about a 10.2% reduction in the industry last year in Australia. Hearing transcript 4/8/11 $5m federal boost for Quitline 2010: Australian Government's additional grant to help with surge in quit calls following the tax rise. See Minister’s release 31/5/10 Rudd government announces tobacco tax rise 2010: Australian Government brings in 25% tobacco tax increase - 30-pack price up to about $2.20. First real increase in a decade followed strong advocacy by health groups, and Henry Tax Review - which also proposed ending duty-free sale. Government announcement April 2010 Henry Tax Review 2010 Decision welcomed in ASH media release 29/4/10 Decision drew 71% popular support in Herald-Nielsen survey Taskforce calls for tobacco tax increase 2009: ASH Australia welcomes recommendation by National Preventative Health Taskforce that tobacco taxes be raised so a packet of 30 costs $20 within three years. See pp. 175-177 of Taskforce report, Tobacco chapter and ASH media release 1/9/01 USA: Largest tobacco tax rise in history 2009: The US adopts its largest-ever federal increase in tobacco tax. See USA Today report LATEST RESEARCH on tobacco price and taxation Tax impact on smoking not weakened by switching to cheaper brands May 2011: April 2010 Australian tobacco tax rise led to reductions on smoking not weakened by switching to cheaper brands, says Cancer Institute NSW study of almost 1000 smokers and quitters. Results "support the use of higher cigarette prices to encourage smoking cessation. Abstract Tobacco tax rise halves Hong Kong high school smoking rate April 2011: Smoking among Hong Kong secondary students has fallen by over 50% after a sharp tobacco tax rise, says a University of Hong Kong study. Media report 28/4/11 Tobacco industry exaggerates illicit trade Feb-March 2011: Report commissioned by Big 3 tobacco companies claims “taxpayers losing $1billion” in illicit tobacco, “up 25%” since 2010 tax rise and now almost 16% of total tobacco sales. Deloitte report Report rejected as "self-serving bulls...t" by independent researchers. Analysis by Prof Simon Chapman Price increases encourage quitting: study 2010: Study of >4000 US/Canadian smokers finds "Higher cigarette prices... associated with greater motivation to stop smoking... The paper supports the use of higher prices as a means of encouraging smoking cessation and motivation to quit." See abstract Tax rise brings dramatic surge in quitting 2010: April 2010 tobacco tax rise leads to steep increase in quit attempts, 300,000 quitting for good. Galaxy poll shows % of smokers trying to quit doubled in two months after the tax rise - refuting tobacco industry claim that it wouldn't work. Galaxy survey AAP/news.com report 23/9/10 Confirms immediate impact of rise: Quit call surge, sales of cessation aids up. See Melbourne Age report 10/6/10 and Quit release 15/6/10 High tax not linked to illicit trade: NZ report 2010: ASH-NZ report shows: despite its high tobacco tax, NZ has very low rate of illicit tobacco trade; tobacco industry has been involved in illicit trade and wrongly claims higher tax will increase it; removing duty-free loopholes would reduce illicit sales. Report Tobacco tax hikes can slash smoking in high risk groups 2010: Study of over 7,500 shows tobacco tax rises makes people struggling with drug, binge drinking or mental health problems 18% more likely to quit. See Healthday report 6/6/10 and abstract Global report: raising tobacco tax, enforcement best way to cut smuggling April 2010: Authoritative worldwide report shows best way to reduce tobacco smuggling, meet health and revenue objectives: increase tobacco tax and improve enforcement. See ASH Australia media release 17/4/10 Earlier Sydney Tele report 14/4/10 and analysis Tobacco myth busted: huge drain, not "benefit" to economy 2009: Tobacco industry myths of "paying for itself" and "benefiting" the economy are shattered by major report showing multibillion dollar burden far outweighs contribution. See full report, CCWA media release 22/10/09, factsheets More tobacco industry myths busted Dearer smokes = fewer smokers: survey 2009: Quit poll shows cost is the biggest single factor in quitting, and smokefree places the biggest factor in staying smokefree. See AAP/ninemsn report 22/9/09 Three-quarters of smokers would quit if price raised 50% 2009: 74% of smokers say they would quit if cigarette prices increased by 50% according to a Quit / Heart Foundation / Cancer Council study. See media release 15/4/09 Australia needs tax increase to meet targets: study 2009: Australia must lift tobacco tax or smoking rates fall will falter. Australian study warns quitting must double for prevalence to fall to 10% by 2020. See abstract and accepted manuscript RESOURCES ASH Australia (2010) Tobacco Tax factsheet Development of a National Preventive Health Strategy on Tobacco ASH submission to Preventative Health Taskforce, 2008 Tips for taking tobacco action This link will help you become an ASH supporter (no cost) You can also help us by supporting us financially - or with your time and effort…..
	Page last updated 16/11/11