Research on the financial consequences of quitting smoking is scant. We examined the association of smoking cessation with the subsequent likelihood of experiencing financial stress.Data came from Waves 1, 2 and 3 (2001-04) of the Household Income and Labour Dynamics in Australia survey. The size of the subsample of smokers in Wave 1 who also participated in Waves 2 and 3 was 1747. We compared respondents who reported to have been a smoker in all three waves with those who were smokers only in Wave 1. Eight questionnaire items were used to construct a binary financial stress indicator.The odds of experiencing financial stress in Wave 3 were 42% (95% CI: 6-74%; P=0.028) smaller for quitters than for continued smokers.Interventions to encourage smoking cessation among disadvantaged groups are likely to enhance their material conditions and standards of living, and to reduce socio-economic disparities in mortality.