A Tale of Two Countries: New Zealand vs Australia

Scenic view of a lakeside town surrounded by mountains in New Zealand.
17 September 2024
CHAPTER 6 . THR: A global transformation

A Tale of Two Countries: New Zealand vs Australia

A case study: U.S.A

New Zealand flag waving against a blue sky.

AT A GLANCE

 

6.9%

New Zealand’s smoking prevalence has more than halved since 2011/12

 

2025

ASH New Zealand says the country is on track to become ‘smoke-free’ (<5% smoking prevalence) by 2025

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New Zealand has emerged as a global leader in Tobacco Harm Reduction (THR), achieving a remarkable decline in smoking rates in recent years. Following the footsteps of Sweden, New Zealand is also on the verge of becoming smoke-free by 2025. This success story is largely a result of the government endorsing a pragmatic approach that embraces Vapour Products as a better alternative for adult smokers who wish to continue nicotine use, while enforcing the regulation of the category in the right way, to mitigate underage access. 

The New Zealand Government’s approach focused on harm reduction, acknowledging the reality that some adult smokers may not quit. Its government has stated that its intent is to "support smokers to switch to regulated products that are significantly less harmful than smoking."[1] By providing a choice and making lower risk profile alternatives available and accessible for adult smokers, it aimed to encourage them away from cigarettes. This strategy proved remarkably effective.

"The comparison of New Zealand and Australia illustrates how regulation can drive THR"

 

Peter Simmons

Area Director, BAT Australia

Peter Simmons

Recognising The Role of Vapour Products

In 2019, New Zealand's Ministry of Health, Manatū Hauora, and Health New Zealand, Te Whatu Ora (the primary publicly funded healthcare system of New Zealand), co-launched the 'Vaping Facts' website. This website provides New Zealanders with helpful information related to Vapour Products and their risk relative to cigarettes. The Ministry of Health and Health New

Zealand said that "Vaping has the potential to help people quit smoking and contribute to New Zealand’s Smokefree 2025 goal."[2] 

The introduction of Vapour Products was associated with a dramatic decrease in the daily smoking rate, which dropped to 6.8% in 2022/23, down from 8.6% the previous year and 16.4% in 2011/12.[3] With smoking rates so low, ASH New Zealand says the country remains on track to reach its 2025 smoke-free goal of <5%.[4] 

Regulation: Key To A Measured Approach

New Zealand’s success hinges not just on embracing Vapour Products but also on implementing a robust regulatory framework. Unlike some countries with complete bans on Vapour Products, such as Australia, where the black market has thrived as a result of prohibition, New Zealand opted for a regulated market.

Under New Zealand’s Smokefree Environments and Regulated Products Regulations 2021,[5] Vapour Products are legal for adults, with flavours and packaging regulated to reduce underage appeal. Additionally, the government requires quality control measures to ensure product safety. 

Although Vapour Products' prevalence has increased overall, there hasn’t been a significant increase in underage use, which suggests the regulations are effective. According to ASH NZ, regular underage Vapour Product use, defined as at least once a month, has decreased since the introduction of a regulated market, which “suggests that the regulations are starting to have the desired impact.”[6]

Furthermore, the availability of regulated Vapour Products discourages the use of black market products that may contain unknown and unregulated ingredients.

"Vaping has the potential to help people quit smoking and contribute to New Zealand’s Smokefree 2025 goal."

 

Vaping Facts

New Zealand's Ministry of Health, Manatū Hauora, and Health New Zealand, Te Whatu Ora, co-launched website

Challenges And The Road Ahead

New Zealand’s journey hasn’t been without its challenges and there may be more ahead. Any future regulations will need to continue to strike the right balance between preventing underage access and the needs of adult consumers to have access to reduced-risk*† products.

Despite the uncertainties, New Zealand’s experience presents valuable lessons for other countries grappling with the public health burden of smoking. It demonstrates the potential of harm reduction strategies, particularly when coupled with robust regulations.

A Beacon of Hope For A Smokeless Future

A smoke-free future is finally within reach for New Zealand. It is a success story that offers a glimmer of hope for other countries wanting to transition to a smoke-free future. By adopting a pragmatic approach that embraces THR and lower risk profile products such as Vapour Products, other countries can potentially replicate its success.

New Zealand’s Journey

2017

Electronic Cigarette Technical Expert

Advisory Group formed.


2018

Cabinet agrees to improve the regulation of vaping and smokeless tobacco products.

 

BAT NZ launches the ePen 3 in November.


2019

The Ministry of Health and Health New Zealand co-launched a smoking cessation website, ‘Vaping Facts’, which informed adult smokers that, although not licensed for this purpose, “Vaping is a way to quit cigarettes by getting nicotine with fewer of the toxins that come from burning tobacco.”[2]

 

BAT NZ launches the ePod in September.


2020

A regulatory regime designed to balance the need to encourage adult smokers to switch to products with reduced-risk potential while protecting young people is approved by New Zealand’s four major political parties.


2021

The Smokefree Environment Regulated Products Regulations 2021 start to come into effect. The Vaping Regulatory Authority is established to regulate vaping products.

 

BAT NZ launches the ePod 2 in March.


2022

BAT NZ launches Vuse GO in October.


2023

The Smokefree Environments and Regulated Products Regulations introduced new Underage Protection measures including flavour labelling restrictions that preserved suitability for adults.[7]

 

BAT NZ launches Vuse GO XL in May.


2024

BAT NZ launches the world first Vuse GO Reload device to meet new regulations.


2025

The Smokefree Environments and Regulated Products Amendment Act (No 2) 2024 comes into effect June 2025. These regulations ban the sale of disposable vaping devices and place significant restrictions on the display/visibility of vaping products in general retail, and specialist vape retail outlets.



Australia: Restricted Access

Meanwhile, Australia has taken a very different path in regulating Vapour Products. While nicotine Vapour Products have never been legal for adult retail sale in Australia, since October 2021, Australia introduced a severely restricted prescription-only access model. This model requires adult consumers to obtain a doctor’s prescription which would then only allow them to legally purchase Vapour Products from a pharmacy.

According to the Royal Australian College of General Practitioners, Australia is the only country in the world to restrict access to nicotine Vapour Products on a prescription-only basis. In 2023, the Australian government further announced the extended restrictions on importation and retail sales including non-nicotine Vapour Products and shut down the personal importation scheme.

In October 2024, nicotine Vapour Products became available for adults to purchase at pharmacies without a prescription. This over-the-counter pharmacy availability has also proved to be a failure for both harm reduction, underage access and the prevalence of the black market - where approximately only 1 out of every 1,686 vaping products bought in Australia are through a pharmacy.[8,9]

Some Australian state governments have also implemented heavy penalties of up to A$32,000 and imprisonment for those in possession of unauthorised nicotine[10], which is much more severe than the penalties for possession of small quantities of drugs such as cannabis. Alongside punitive regulation, the public health campaigns launched by the government highlighted the dangers of vaping

with graphic imagery and testimonials with the slogan “Every Vape is a Hit to Your Health”; in contrast to the pro-switching messaging of their New Zealand counterparts.

Did these extreme measures work? In our opinion, this is a clear no. In 2025, there are an estimated 1.7m adult vapour consumers in Australia. Of these, an estimated 99% are using vapes from illegal sources.

The smoking rate has also risen for the first time since 2005, increasing from 11.8% in 2024 to 12.1% in Q1 2025 since the vaping sales ban was introduced in mid-2024.[11]

"The current prescription-only model has been disastrous proof of this problem. Implementing more severe restrictions on vaping products will only spur the black market and reduce smoking quit rates."

 

Australian National Advisory Council on Alcohol and Other Drugs (ANCAD)

By 2021, New Zealand overtook Australia in terms of smoking incidence reduction rate, despite starting at a higher level of prevalence.

A 2022 study using a vaping model by Levy et al. evaluated the potential impact on public health of relaxing restrictions on Vapour Products in Australia, predicting that as many as 104,200 premature deaths could be averted during the period 2017–2080 if Australia embraced Tobacco Harm Reduction by increasing adult smokers' access to these products.[12]

Australian experts increasingly agree that the Government’s approach to THR isn’t right. For example, when Australia moved to the pharmacy-only model in October 2024, the Pharmacy Guild of Australia, a national body that represents Australia’s pharmacists, raised its concerns, stating, “it is unclear how this change will address concerns around availability of black-market vapes and organised crime.”[13]

And they were right. Organised crime has now gained a significant foothold in illicit tobacco and vapour; to such an extent that there has been a violent escalation in rival crime syndicates fighting over sales territory, resulting in almost 250 retail[14] store fire-bombings across Australia since January 2023.

Despite the media scrutiny and calls for a Royal Commission, the Australian Government continues to deny the scale of the crisis. Even with the Australian Government committing over A$450 million to fight the illicit tobacco and vapour market since January 2024 and establishing a Federal Illicit Tobacco and E-Cigarette Commissioner in July 2024, the illicit nicotine market has continued

to grow rapidly. This underscores that the current tobacco and vapour policy settings are failing.[15]

The current situation in Australia is rapidly deteriorating, and without a fundamental shift in approach, Australia risks cementing a permanent and entrenched illicit market for tobacco and nicotine, with potentially severe consequences for public health, crime and the national economy.


Footnotes

* Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive.

† Our products as sold in the U.S., including Vuse, Velo, Grizzly, Kodiak, and Camel Snus, are subject to FDA regulation and no reduced-risk claims will be made as to these products without agency clearance.

 

References

[1] New Zealand Legislation, Smokefree Environments and Regulated Products Act 1990, Section 3A

Available at: https://www.legislation.govt.nz/act/public/1990/0108/latest/DLM3913904.html (Accessed: 23 July 2024)

[2] Ministry of Health New Zealand, Vaping facts. Available at: https://www.vapingfacts.health.nz/ (Accessed: 23 July 2024)

[3] Ministry of Health New Zealand, New Zealand’s smoking rates continue to decline. 2023. Available at:

https://www.health.govt.nz/news/new-zealands-smoking-rates-continue-to-decline (Accessed: 23 July 2024)

[4] Action on Smoking and Health (ASH), Smoking rate continues record decline to only 6.8% daily use, Māori and Pacific rates are also reduced.

Action for Smokefree 2025, 2023. Available at: https://www.ash.org.nz/smoking_rate_continues_record_decline_to_only_6_8_daily_use_m_ori_

and_pacific_rates_are_also_reduced (Accessed: 23 July 2024)

[5] New Zealand Legislation, Smokefree Environments and Regulated Products Regulations 2021: Version as at 20 March 2024. 2024. Available at:

https://www.legislation.govt.nz/regulation/public/2021/0204/latest/whole.html (Accessed: 23 July 2024)

[6] Action on Smoking and Health (ASH), Vaping and young people: ASH position statement. Action for Smokefree 2025, 2023. Available at:

https://assets.nationbuilder.com/ashnz/pages/193/attachments/original/1683505972/Vaping_and_young_people_ASH_Position_Statment_

May_2023.pdf (Accessed: 23 July 2024)

[7] New Zealand Legislation, Smokefree Environments and Regulated Products Regulations 2021: Version as at 21 September 2023. 2023

Available at: https://legislation.govt.nz/regulation/public/2021/0204/22.0/whole.html (Accessed: 5 August 2024)

[8] NewsGP. (2021). newsGP - Have GPs been supported for vaping to go prescription-only from October?

Available at: https://www1.racgp.org.au/newsgp/clinical/have-gps-been-supported-for-vaping-to-go-prescript

[9] Williams, R. (n.d.). Vaping plan up in smoke Leading supplier pulls out. [online]

Available at: https://readnow.isentia.com/Temp/29541-1205141376/1097584394_20260616.pdf

[10] Queensland Health, Everything you need to know about illicit tobacco and vapes. 2025.

Available at: https://www.health.qld.gov.au/newsroom/news/everything-you-need-to-know-about-illicit-tobacco-and-vapes

[11] Roy Morgan (2024). The full picture: a decade of smoking in Australia - Roy Morgan Research. [online]

Available at: https://www.roymorgan.com/findings/9937-cigarette-smoking-in-australia-press-release.

[12] Levy, D.T., et al., The Australia Smoking and Vaping Model: The Potential Impact of Increasing Access to Nicotine Vaping Products.

Nicotine Tob Res, 2023. 25(3): p. 486-497. DOI: 10.1093/ntr/ntac210

[13] The Pharmacy Guild of Australia, Vape control smoked. 2024.

Available at: https://www.guild.org.au/news-events/news/2024/vape-control-smoked (Accessed: 4 August 2024)

[14] ALIVE Advocacy. (2025). Firebombings | ALIVE Advocacy. [online] Available at: https://www.aliveadvocacymovement.com/firebombings

[15] Commins, P. (2025). Tobacco excise has passed a ‘tipping point’ and is fuelling black market, economists warn. [online] the Guardian.

Available at: https://www.theguardian.com/society/2025/jun/11/tobacco-excise-isnt-making-australians-smoke-less-and-should-be-frozen-tocurb-

black-market-economists-say

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