Carrington Clarke

collapsing.

And that is primarily because we've seen such a huge rise in the purchasing of illegal cigarettes, black market cigarettes, which don't have the tax being added to them.

And not only has there been a massive hit to revenue in this particular financial year collapsing, but actually it is going to continue to fall in future.

Now, obviously there's

part of the reason the excise was as high as it was, was to try to incentivise people to stop smoking.

But that is not the reason why we're seeing the collapse in the way we are, or it isn't the big reason.

So they're now expecting by 2029, the tobacco excise will only generate about $2.1 billion.

That's about 75% less than the $7.8 billion it collected in 24-25.

This is actually creating a major black hole for the government.

Fascinating.

Steph, always a pleasure.

Hopefully next time we'll be in the same room for the next episode of ABC Business Daily.

And we will be back with another episode of ABC Business Daily tomorrow.

If you want a full blow-by-blow of the budget from its release until now, make sure you go back in the feed and listen to our special episode with our sister podcast, Politics Now.

Patricia Carvellis and I came straight out of the budget lockup.

to run through what we saw in the budget papers and what it means for big picture politics and economics.

Just search for A Big Budget All About Housing and you'll find it.

So that you never miss out on specials like these, make sure you're following us on ABC Listen or wherever you get your podcasts.

If you'd like to send in a question, like Jenny did, you can email abcbusinessdaily at abc.net.au.

Catch you next time, Steph.