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The key reasons include: High tobacco excise tax on every cigarette or gram of tobacco Goods and Services Tax (GST) applied on top of the excise and base product price Plain packaging laws , which remove brand-driven competition based on packaging Strict retail licensing requirements that increase compliance costs Limited advertising and promotion , meaning no price-based promotions in the traditional sense Together, these factors mean that the price you see on the shelf in Australia is heavily driven by tax and regulation, rather than just the raw cost of tobacco leaf or manufacturing