british american tobacco australia - Australia's tobacco industry
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
| Total value of all retail sales in Australia 2005/2006 (ABS) [2] | $A293 billion |
| Total value of tobacco retail sales in Australia 2009 [3] | $A9.98 billion |
| Average percentage of the retail price of cigarettes collected by the government as tax including excise and GST | 65-70 per cent |
| Estimated total tobacco excise taxation collected in 07/08 [4] | $A5.61 billion |
| Number of retail businesses that sell cigarettes and tobacco products in 2009 | 40,000 |
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.
Sources
- Assessment of the economic contribution of the tobacco industry in Australia, PricewaterhouseCoopers, July 2009.
- Australian Government Budget Outcome - 2005/06. www.budget.gov.au
- Assessment of the economic contribution of the tobacco industry in Australia, PricewaterhouseCoopers, July 2009.
- Australian Government, 2007/08 Budget papers www.budget.gov.au