Also, they're not just taxed; they can't be advertised, they can't be displayed in shops, only one counter in a shop can sell them, they have gruesome images on the packets, and there's a LOT of support to quit smoking.
The tobacco companies were using vaping as a way around all of these regulations, and an opportunity to once again market to younger generations, which is why i'm glad the govt is now doing something about vaping.
I also doubt the black market is as large as you think. I'm sure it exists, but I just don't think it's as rich as you describe. We're "girt by ocean" on all sides, and if anybody has a successful smuggling route into Australia they likely want to maximise profit by smuggling higher value illegal substances.
[1] https://www.cbc.ca/news/indigenous/akwesasne-irs-tobacco-smu...
It's a uniformed service that enforces Australia's border controls. Far from being ridiculous, I can't think of a more appropriate name.
Plus tobacco companies have actually tried to sell tobacco products that are classified as "e cigarettes" to avoid taxes in several jurisdictions. John Safran's book Puff Piece is quite interesting and covers that phenomenon (I recommend it).