The Victorian government has announced new powers to shut down premises linked to illicit tobacco.

Under laws to be introduced this year, Tobacco Licensing Victoria will be able to order businesses caught selling illicit tobacco to close.

Landlords will also be given new powers to kick out businesses selling illicit tobacco. Those that knowingly allow these sales will face tough new penalties.

Inspectors will also get the power to destroy seized illicit tobacco pre‑trial. The state government says this will help keep illegal tobacco off the streets and make prosecutions faster.

“Illicit tobacco fuels organised crime, and we’re shutting down the operators who think they can get away with it,” says Victorian Minister for Casino, Gaming and Liquor Regulation Enver Erdogan.

 “Our inspectors are moving fast to crack down on people doing the wrong thing – anyone caught selling illicit tobacco will face serious consequences.”

Backed by industry

The move has been welcomed by Master Grocers Australia (MGA), with the organisation saying the crackdown is needed to break a dangerous organised crime market operating in plain sight across Victoria.

MGA CEO Martin Stirling says the reforms are an essential tool to disrupt rampant illicit trade harming legitimate retailers and communities while undermining the rule of law.

“Illegal tobacco should have no place in a functioning society. Those selling it aren’t just breaking tax laws – they are ignoring rules designed to protect children and public health,” he says.

“Independent retailers follow the law and comply with strict tobacco regulations, yet they are being undercut by illegal operators selling unregulated products at prices legitimate businesses simply cannot compete with.”

Mr Stirling says the new store closure powers send a strong signal that illegal operators will no longer be tolerated and the days of easy and illegal tax-free profits are hopefully coming to an end in Victoria.

“MGA has consistently called for stronger enforcement powers to tackle illicit tobacco, so we welcome this important step to give authorities the tools they need to shut down illegal operators,” he says.

“We call on the Victorian government to ensure Victoria’s laws are passed and implemented urgently, as we have seen in other states.”

The Shopping Centre Council of Australia (SCCA) has also welcomed the announcement, noting that the new legislative powers represent a significant and necessary step forward in tackling the growing problem of illicit tobacco.

SCCA CEO Angus Nardi says closure orders, combined with legislated lease termination rights, have proven to be an effective tool in shutting down illegal tobacco stores, and also support law-abiding and legitimate operators.

“Our industry has developed a model legislative framework for lease termination, which is proving to be strong, clear and effective in other jurisdictions where it has been adopted,” he says.

“The government’s proposed reforms will make a real difference on the ground.”

Enforcement essential  

Mr Stirling says the reforms are a positive step but emphasises the importance of ensuring the new laws are “rigorously enforced” by well-resourced agencies that coordinate action with other state and federal agencies.

“This issue has escalated into a significant public safety concern. Across Australia, we have seen criminal gangs fighting for control of the illicit tobacco market, with incidents of violence, arson and extortion linked to the trade,” he says.

“Retailers and their staff should never feel unsafe when running a legitimate business and coming to work.”

Mr Stirling says continued enforcement, intelligence sharing and strong penalties will be essential to ensure organised criminal networks cannot profit from illegal tobacco.

“Legitimate small businesses shouldn’t be the ones paying the price for organised criminal activity,” he says.