An uplift in funding through a partnership between the federal and South Australian state governments will provide $3 million to allow authorities to increase enforcement activities, aimed at disrupting illicit trade.

This funding builds on the $40 million in Australian Government funding provided in 2025 to support states and territories to establish local capability to proactively respond to localised compliance and enforcement challenges associated with the trade of illicit tobacco and nicotine products.

These new funds will be used to scale up resources and operational capacity within the Consumer and Business Services (CBS) to carry out enforcement activities that more effectively disrupt illicit trade, and to safely transport and dispose of seized products.

Consumer and Business Affairs Minister for South Australia, Michael Brown says the state’s crackdown on illegal tobacco and vape products is “delivering real results”.

“Through the tireless and coordinated work of CBS and SAPOL, we have delivered tough penalties, issued hundreds of closure orders, and made a real impact in disrupting this illicit trade,” he said.

“But there is more work to be done, and with this welcome increase in Commonwealth funding for our tough compliance measures, enforcement activities are set to increase statewide.

Making progress

South Australia has recently received national recognition for its achievements and progress in reducing smoking rates and strengthening illicit tobacco legislation and enforcement.

The Australian Council on Smoking & Health has rated South Australia as ‘way out ahead’ on the National Illicit Tobacco Ladder; a state-by-state ranking on how each state or territory government is performing to address illicit trades in their jurisdiction.

Notably, South Australia is the only state to have banned online tobacco sales, further strengthening supply chain controls and protecting young people.

“We know that this black market won’t go quietly, which is why we stand ready to further strengthen our laws if necessary to protect the public and stamp out the sale of illicit tobacco and vape products in South Australia,” said Mr Brown.

Tighter reforms were introduced last year to grant CBS and South Australia Police more powers against any individual or small business found to be involved in the illicit tobacco and nicotine product trade.

These reforms also include giving landlords the right to end a retail lease and introducing the highest financial penalties of any Australian state or territory.

From 1st of July 2024 to 31st of May 2026, CBS has undertaken 923 inspections and issued 93 expiation notices. The Minister for Consumer and Business Affairs has issued 277 closure orders.

It is currently estimated that the illicit trade now accounts for more than half (55 per cent) of the total Australian tobacco and e-cigarette market.