Kevin Rudd Wants To Make A 20-Pack Of Cigarettes Cost $5.25 More To Pay For A Budget Surplus

Getty / Cole Bennetts

Prime Minister Kevin Rudd has, according to a report by The Australian, signed-off on a $5.3 billion increase in tobacco excise to make sure the labor party hits its target for a budget surplus.

The changes would be phased in over several years, but would add $5.25 to a pack of 20 cigarettes once the full increase is in place by the end of 2016.

The excise increase is part of a soon-to-be announced economic update, and will help the Labor Party keep its promise of restoring a budget surplus by 2015-16.

In May 2010 Kevin Rudd (when he was PM the first time around) raised the tax rate on cigarettes, though it did not have the forecast increase in revenue.

According to The Aus, Tobacco excise raised $5.4 billion in the year to June 2012. The revenue was down from $5.6 billion in the year to June 2010.

Read more here.

Now read: Australia Has Sent Its First Group Of Refugees To Papua New Guinea

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.