Higher tax on rollies

SMOKERS using roll-yourown tobacco and cigars are set to be hit by higher costs.

The Government is adjusting the costs of RYO tobacco so that it falls in line with the tax treatment manufactured cigarettes already receive.

The average cost of a 50g pack of RYO loose-leaf tobacco is about $62.

The hike will be phased in from this year through until 2020 to coincide with the annual 12.5 per cent tobacco tax increases which the Turnbull Government announced last year, to be implemented over a four-year period beginning this year. These hikes will take effect on September 1 each year.

The new measure is tipped to generate an additional $360 million over four years which will include a $35 million component paid to the states and territories.