The arrest of a Thai Airways cabin crew member in Melbourne, over allegations that she attempted to smuggle heroin into Australia, has renewed attention on Australia’s position as one of the world’s most lucrative illicit drug markets.
Australian police said the woman arrived in Melbourne while on duty on an international flight and was allegedly found with more than one kilogram of heroin concealed in the linings of 12 tote bags.
The drugs had an estimated street value of about AU$500,000 (US$347,100).
Strong consumer demand, high retail prices and high purchasing power continue to attract transnational organised crime groups to Australia.
The UNODC World Drug Report 2026 identifies Oceania, the region that includes Australia and New Zealand, as having the world’s highest prevalence of illicit drug use, at about 15.5% of people aged 15 to 64.
For specific drugs, UNODC data show that the highest prevalence of MDMA (ecstasy) use is recorded in Australia and New Zealand.
It also finds that cocaine-use is highest in Oceania, followed by the Americas and Western and Central Europe, while methamphetamine use remains particularly significant in Australia.
Australian enforcement agencies face persistent challenges at the border. The Australian Border Force estimates it disrupts around 20% to 25% of illicit drug imports.
Australia’s geographic isolation, strict border controls and high purchasing power help drive retail drug prices far above production and wholesale prices in many source and transit countries.
The Victorian Parliamentary Budget Office reported that heroin in Victoria sold for about AU$250 per gram in 2022.
These high prices create large profit margins, giving organised crime groups a strong financial incentive to continue targeting the Australian market, despite the risk of detection.
The economic cost is also substantial.
The Australian Institute of Criminology estimates that serious and organised crime cost Australia up to AU$82.3 billion in 2023-24.
Illicit drugs accounted for AU$19 billion in direct costs, the highest of any crime type.
Law enforcement cooperation between Australia and Thailand also highlights Thailand’s role as a transit point in regional trafficking networks.
The Australian Federal Police (AFP) said Thai law enforcement agencies, working with the AFP under Joint Taskforce Storm, seized almost four tonnes of methamphetamine and heroin transshipped through Thailand on its way to Australia in the 2023-24 financial year.
