Smokers who roll their own cigarettes or puff on cigars will have to pay more from September.
The federal government on Thursday introduced draft laws to increase the tax on certain tobacco products to bring them in line with manufactured cigarettes.
It covers things like loose leaf tobacco, most cigars and snuff.
"This adjustment, to be made over four years, will make sure the government taxes tobacco more equally regardless of its form," minister Michael McCormack told parliament.
The measure, announced in the May budget, is expected to rake in $360 million.
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