The price hike will raise revenue to allow the government to pursue a variety of 2020-21 policy goals, but also, to work the economic levers to encourage more positive changes in consumer behaviours and choice-making as high tobacco and alcohol consumption is causing health care costs to rise and productivity to fall.
From 1 July, the average packet-a-day smoker will pay $547.50 a month, or $6,570 a year, just to maintain their addiction.
