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Federal politics live: Coalition unveils plan to slash tobacco tax by 80 per centBy political reporter Holly Tregenza
Posted Thu 3 Sep 2026 at 6:48amThu 3 Sep 2026 at 6:48amThu 3 Sep 2026 at 6:48amSkip to timeline
Opposition leader Angus Taylor has unveiled his plan to disrupt the tobacco black market by cutting the excise by 80 per cent.
It would reduce the excise on a standard packet of 20 cigarettes from $30 to about $6.
Prime Minister Anthony Albanese is in Palau at the Pacific Islands Forum, where climate change is expected to be a focus of debate today.
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Thu 3 Sep 2026 at 7:11amThu 3 Sep 2026 at 7:11am
What will the RBA do with interest rates?
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By Holly Tregenza
Treasurer Jim Chalmers is speaking with Sally Sara on Radio National Breakfast.
New data released from the Australian Bureau of Statistics yesterday shows the Australian economy is expanding faster than expected, growing by 2.1 per cent over the year to June 30.
But productivity has dropped.
The question many Australians are now pondering is whether the Reserve Bank will increase interest rates later this month.
Chalmers won’t speculate on the decision of the RBA but says productivity must remain a focus.
“I think the main story of the National Accounts is about an economy which has substantial advantages but in the face of serious challenges, and productivity is one of them,” he says.
“It’s all about trying to shift the productivity challenge in our economy which has been a huge problem for decades now, and will take time to turn around.”
Thu 3 Sep 2026 at 6:50amThu 3 Sep 2026 at 6:50am
$2m funding for register to tackle ‘invisible scourge’ of racism
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By by Indigenous affairs reporter Stephanie Boltje
An online register for reporting racism against First Nations people face has received a $2 million funding boost from the federal government.
About 2,100 racist incidents have been reported to the Call It Out register since it began in 2022.
Minister for Indigenous Australians Malarndirri McCarthy says the funding comes after the parliamentary racism inquiry heard evidence that “racism is everywhere in this country”.
“I can speak personally as well in terms of my experiences and family members but also more importantly around systemic concerns with it,” she said.
“I’ve certainly heard it from health workers, doctors who work in the medical space, concerns in the workplace.”
Professor Lindon Coombes from the Jumbunna Institute, which runs the register with the National Justice Project, said the funding will go towards staffing, web development and public awareness.
He said the public should be assured any information they submit to the register “will be protected, it will be read, and it will used to come up with strategies to work against racism,” he said.
National Justice Project’s George Newhouse said they had learnt from other communities who were recording incidents of Islamophobia and anti-Semitism.
He said it was “hard to believe” there were no records kept of racism against First Nations people since 1788.
“If you don’t have data, it’s an invisible scourge on our society,” he said.
“It’s visible to people who receive it and feel it, but governments don’t see it because they don’t see the data.”
Key Event
Thu 3 Sep 2026 at 6:49amThu 3 Sep 2026 at 6:49am
Coalition unveils plan to cut tobacco tax by 80 per cent
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By Clare Armstrong
Opposition leader Angus Taylor is rolling out his plan to tackle the growing tobacco black market today, which includes slashing the excise by 80 per cent.
Taylor says the plan would reduce the tax on standard pack of cigarettes from about $30 to just $6.
More than half of the tobacco consumed in Australia last year was bought illegally.
Public health authorities have long used tobacco excise to reduce smoking by making cigarettes more expensive and have consistently warned dropping the tax risked reversing this.
The Coalition has also vowed to legalise, regulate and tax vapes and nicotine pouches for adults.
Currently Australians aged over 18 can purchase legal vapes through pharmacies, while pouches are banned.
We’ll hear more from Taylor later in the morning.
Thu 3 Sep 2026 at 6:48amThu 3 Sep 2026 at 6:48am
Good morning 👋
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By Holly Tregenza
Hello! Welcome to our politics live blog. I’m Holly Tregenza from the ABC’s Parliament House team, here to guide you through the day.
This morning we’ll hear from Opposition leader Angus Taylor who is unveiling his plan to tackle the growing illegal tobacco market.
Prime Minister Anthony Albanese remains in Palau for another day of the Pacific Islands Forum, where we are expecting conversation to be centred on climate change.
Let’s dive in.
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