The cost of smoking is not just to your health

Tobacco costs the Victorian economy $3.7 billion each year with new figures showing Victorian businesses bear 43 per cent of the tangible social costs of smoking.

Quit Victoria director Dr Sarah White said smoking puts a greater financial strain on businesses than most realise.

“When you add up the loss of productivity due to smoking breaks, absenteeism due to illness and loss of production due to a workforce diminished by tobacco-related deaths, the Victorian economy is bearing a $1.1 billion burden in workforce costs that is entirely preventable,” Dr White said.

The report estimated net workforce labour costs of $632 million in smoking breaks, $355.1 million in absenteeism and $149.2 million net costs from reduced production due to diminished workforce.

In addition, Victorians currently spend more than $1.3 billion per year buying cigarettes and other tobacco products, these products are manufactured by overseas companies with very little profit margin for local retailers.

Once people quit, the money they once spent on such products is freed up to spend on other goods and services.

“Taking into account all four of these factors, Victorian businesses are bearing 43 per cent of the total net tangible costs of smoking compared to government 14 per cent and households 44 per cent,” Dr White said.

“It makes good economic sense for businesses to support their staff to stop smoking through initiatives such as smoke-free policies, workplace smoke-free programs, and health and wellbeing initiatives like the state government’s Achievement Program.

“We always talk about the health impact of smoking, but the 4,427 Victorian deaths and the thousands of Victorians living with smoking-related illness, also has an impact on our economy.

“Government investment in programs to discourage smoking is good for Victorian business. The fewer Victorians who die prematurely, the more years they have to contribute to our society and to buy the goods and services produced by Victorian companies.”

VicHealth CEO Jerril Rechter said the research demonstrated the importance of supporting workers to quit.

“Smoking hurts our health and this new research clearly shows the impact of smoking on the health of our economy,” Ms Rechter said.

“Workplaces can play a key role in supporting their employees to quit through initiatives such as counselling programs, promoting Quitline in their workplace and providing financial incentives for cessation products like nicotine patches and gum.”

Dr White said with eight in 10 smokers wanting to quit, a smoke-free workplace can be a good first place for businesses to start.

“When workplaces introduce smoke free policies we often see staff quit smoking,” Dr White said.

“This increases productivity for the business and, most importantly, minimises the health impacts for smoking and non-smoking staff. It really is a no-brainer.”