CIGARETTES will smash the $16 barrier for a packet of 50 when Federal Government tobacco and beer excises rise next week.
A packet of cigarettes is likely to cost up to an extra 45c, while a schooner of beer may rise by up to 7c.
The extent of federal excises will be revealed this week and hit smokers' and drinkers' hip pockets from February 1.
Tobacconists are bracing for an excise rise of about 2.7 per cent, which is in line with inflation.
Smokemart estimates the latest excise slug will add an extra 1c to the price of every cigarette - and cost the average smoker about $110 more a year for their habit.
Based on the figures, a packet of Wingfield 20s will cost $7.30, Benson and Hedges 25s will cost $9.10 and Peter Jackson 30s will cost $10.45.
But a packet of Horizon 50s will rise 40c to $16.10 while Holiday 50s will soar by 45c to $15.65. Taxes and excises will make up 75 per cent of the cost of a packet of cigarettes.
Smokemart pricing officer Ennio Frocione said: "This is the first time I can remember cigarettes costing more than $16 a packet".
He fears the price surge will fuel a blackmarket in cigarettes. Tobacconists have received draft advice about the likely tax hikes ahead of the official government announcement.
Australian Hotels Association general manager John Lewis said he was yet to receive official notification on beer price rises.
Based on the tobacco industry assessments, a schooner of beer could cost about $2.60.
"The price of beer will not necessarily go up as beer has been de-regulated, but the pubs that don't will lose money," Mr Lewis said.
The tobacco rise has angered the state's 250,000 smokers who have branded it "unjust".
Smokers' Rights Association president Dennis Robinson said the increase was "another impost on smokers, who are already made second class citizens by governments".
"We are pushed out of restaurants and onto the streets and then made to pay more in taxes for our past-time," he said.
A spokeswoman for Customs Minister Christopher Ellison said it was too early to predict the full extent of a lift in excise. She said it was linked to the consumer price index which would be released on Wednesday.
Petrol has been spared after the government abolished twice-yearly indexation last year in response to angry motorists punishing the Liberals in Queensland and West Australian state elections.
Beer and cigarette prices will be adjusted again later this year, adding to drinkers' and smokers' woes.
This report appears on news.com.au.