More than 16 million illegal cigarettes and $1.6 million in cash have been seized in a massive police operation in Sydney that saw five men charged.
Authorities believe the men are part of an alleged money laundering network, and further allege the syndicate laundered $68 million over a two-year period.
In a raid on properties in Auburn, Busby and Eastlakes last week, police allegedly seized almost 14 million illicit cigarettes, along with 29kg of loose-leaf tobacco, three gel blaster rifles and $343,000 in cash.
Previous seizures allegedly linked to the syndicate include:
A car on September 3, where police allegedly found $160,000 in cash and 1260 illicit cigarettes
A car in January, where police allegedly seized a small amount of illicit tobacco and $23,000 cash.
A home in Burwood in January, where police allegedly seized 5,500 illegal cigarettes, $1.25m in cash, two money counters, luxury watches, and electronic devices
In December, six homes in Wentworthville, Auburn and Burwood were searched, and police allegedly found 2.1 million illicit cigarettes and $108,000 in cash.
More than 16 million illegal cigarettes were confiscated by police.
(NSW Police)
Images show piles of cash tied in bundles, along with stacks of cardboard boxes allegedly containing the illegal products.
The illegal smokes carry a street value of more than $15 million.
Five men, aged 21, 26, 26, 32, and 37 have been charged and remain before the courts.
The rise of illegal cigarettes in Australia
Illicit cigarettes, usually sourced from China, East Asia or the UAE, have rapidly grown in popularity in Australia, mainly due to high taxes that make legal tobacco increasingly unaffordable.
Last week, Aussie smokers were slugged with another tax increase, pushing the tax alone for a standard 20-pack of cigarettes to more than $31.
A man was arrested in Auburn by Strike Force Mustang as part of their 10-month long operation.
(NSW Police)
It pushes the starting retail price of a pack of cigarettes to about $40, and means smokers are now paying $1.55 in tobacco tax on every cigarette.
In contrast, an untaxed packet of illegal cigarettes can cost as little as $10.
Illegal tobacco out of control in Victoria
In Victoria, new data has revealed that almost every tobacco store across 110 suburbs was found to be selling illicit nicotine products.
Police believe the syndicate laundered around $68 million over a two-year period.
(NSW Police)
The research, by the Herald Sun, found 84 per cent of tobacconists sold illegal products, compared to 53 per cent in NSW and just 29 per cent in Queensland.
Former Australian Federal Police detective sergeant Rohan Pike told 3AW Breakfast not enough is being done to counter the problem.
“We haven’t tried terribly hard, particularly in this state, to shut these things down,” he said, adding it is “very, very hard” to stop people from buying cheaper cigarettes in today’s economy.
Pike said other states are sending more resources to tackle the illicit market, with buyers in some areas now leaning back towards legal products.
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