Australian states consider suing tobacco companies for health costs

Australian state governments could sue major tobacco companies for billions of dollars in public hospital and healthcare costs, according to the Guardian. The proposal was developed by Neil Francey, a Sydney Health Law research affiliate and former barrister who previously helped establish legally that secondhand smoke causes lung cancer. [1]

The Guardian reported that state governments could seek up to $50 billion in compensation from the industry. The South Australian government is formally seeking legal advice on the plan, while other Australian states are currently reviewing the proposal. [1]

The tobacco industry includes major multinational corporations such as British American Tobacco, which was established in 1902 and is headquartered in London. As of 2025, it ranked as the second largest tobacco company in the world based on net sales. [2]