The cost of tobacco is hitting disadvantaged households hardest

Publicly released:
Australia; International; QLD
Photo by Melissa Walker Horn on Unsplash
Photo by Melissa Walker Horn on Unsplash

Disadvantaged Aussie households are spending 6.3% of their disposable income on tobacco compared with households in the most advantaged areas who are spending just 2.7%, according to Australian research. The authors say the results demonstrate the complex public health and social equity challenges of high taxation as a tobacco control measure. They also noted a significant decline in household tobacco expenditure in 2021 and 2022 that could be linked to the increased presence and availability of illicit tobacco currently in the market. The authors say additional smoking cessation support is needed, particularly for low-income populations with the highest smoking prevalence.

Media release

From: The University of Queensland

More support needed to reduce high smoking burden in low-income households

Disadvantaged households have higher rates of smoking, putting pressure on their household budgets, University of Queensland research has found.

Professor Coral Gartner from UQ’s School of Public Health, said reducing smoking among households in lower income areas was important because of the enormous health and financial toll.

“The increasing price of tobacco has assisted many households in all income groups to quit smoking,’’ Professor Gartner said.

“But for those who haven’t quit, tobacco smoking is a growing source of financial strain.

“Conventional tobacco demand reduction measures, such as tax, may be insufficient on their own for Australia to achieve the national goal of 5 per cent or less smoking prevalence by 2030.

“Other policies such as increasing free smoking cessation support and reducing tobacco retail availability may be particularly useful for those people who have found quitting difficult.’’

Researchers studied household tobacco expenditure by socioeconomic status from 2006 to 2022, a period that included substantial tobacco tax increases (2010-2020).
Overall average annual household tobacco expenditure decreased to $972.70, reflecting a decrease in the number of people purchasing tobacco because of higher prices.
In households that did purchase tobacco, spending increased by $1092.20 to $4931.70.

Professor Gartner said existing research showed tobacco excise has been a successful strategy to decrease overall smoking prevalence in Australia.

However, for people who continued to smoke, the increased financial burden of tobacco products meant less spending on other items such as health, food, insurance and education.

Professor Gartner said additional non-price-related measures were needed to help those people who haven’t found higher prices sufficient to stop smoking, due to the high addictiveness of tobacco.

She said measures could include reducing tobacco retailer density, removing tobacco from general retail outlets, pharmaceutical-like regulation of tobacco and nicotine products, free counselling and quit smoking medicines, and floor and ceiling prices for tobacco products.

“Australia is a world leader in tobacco taxation and has implemented tax policy in line with levels recommended by the World Health Organization,’’ Professor Gartner said.
“However, our findings underscore the need for comprehensive policy approaches to reduce tobacco smoking in Australia through both price and non-price-related measures.
“There is also an ethical case for reinvestment of tobacco tax revenue into smoking cessation support and general welfare measures that assist low-income populations.’’

The research is published in Tobacco Control.

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Research BMJ Group, Web page Please link to the article in online versions of your report (the URL will go live after the embargo ends).
Journal/
conference:
Tobacco Control
Research:Paper
Organisation/s: The University of Queensland, Seoul National University Institute of Health and Environment, South Korea
Funder: CEG and HK are researchers associated with the National Health and Medical Research Council Centre of Research Excellence on Achieving the Tobacco Endgame (NHMRC Grant GNT1198301); CEG is supported by an ARC Future Fellowship (FT220100186). HK is supported by a National Research Foundation of Korea (NRF) grant funded by the Korean government (MSIT) (grant number 2021R1C1C2094375). JN was funded by Queensland Health’s ’Health Hero’s Scholarship’.
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