In a landmark decision, the High Court has rejected a challenge mounted by tobacco companies and ruled the federal government's plain packaging laws are constitutional.
British American Tobacco, Japan Tobacco International, Philip Morris and Imperial Tobacco Australia argued before the Court in April that the government's legislation was contrary to section 51 of the Constitution. S 51 allows the government to acquire property on “just terms”.
The government will now be able to push ahead with its Tobacco Plain Packaging Act 2011, which mandates all tobacco products will be sold in olive-brown packaging with the brand name in small lettering. The packaging will continue to feature health warnings.
In a press conference, Federal Attorney-General Nicola Roxon said: "This decision means the tobacco companies no longer have any excuses to implement this measure."
Roxon urged the tobacco companies to comply with the wishes of the Australian people and not drag the issue out with a challenge to the World Trade Organisation. She added she was confident the government stands on strong ground, which has been strengthened by the High Court ruling.
Roxon reiterated the legislation is meant purely for tobacco companies and will not be extended to other products such as alcohol or fast food products. She said: "There are no plans to extend this to alcohol. We've been clear that tobacco is the only legal product that if you use exactly as intended, it will kill you."
The Australian laws are seen as a test case internationally with other countries including the UK, Norway, South Africa and New Zealand considering the introduction of similar laws.
Health Minister Tanya Plibersek said: "This is a victory for all the families who have lost someone to a tobacco-related illness. It's important to remind ourselves that 80% of people who get hooked on cigarettes does so before they're 19 and 99% are hooked before they're 26. The reason they [tobacco companies] need to advertise to young people is because old people keep dying and they need new customers.
"We've taken away their mobile billboards and their ability to appeal to children. No parent wants their child to start smoking and this is an investment into the future of our people."
Plibersek added 10.5% of deaths in Australia are tobacco-related.
The law will take effect from 1 December while tobacco companies will have to start producing the new packaging from 1 October.
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