
In short:
Victoria is introducing new powers to shut down illicit tobacco businesses and impose tougher penalties on offenders. The move comes after years of enforcement action that has failed to stop the growth of the black market tobacco trade across the state.
Tougher Measures Proposed, Again
Victoria is set to introduce some of the toughest penalties yet in its battle against the illicit tobacco trade, with new laws allowing authorities to shut down offending businesses for up to 90 days and seek longer-term closures through the courts.
Under legislation introduced to Parliament, Tobacco Licensing Victoria and Victoria Police would gain the power to issue temporary closure notices to businesses found selling illicit tobacco.
Courts could also order longer-term closures, while businesses that breach the orders could face fines exceeding $2.4 million and prison terms of up to 20 years.
The laws would also allow landlords to terminate leases where long-term closure orders are in place and create penalties for property owners who knowingly allow illicit tobacco sales on their premises.
Authorities would also be given the power to destroy seized illicit tobacco before a trial concludes, reducing the cost and logistical burden of storing large quantities of product.
The move represents the latest escalation in Victoria’s long-running battle against the black market tobacco trade, which has flourished despite years of enforcement operations, tobacco store raids and repeated government promises to crack down on illegal sales.

Tobacco Wars Continue Despite Crackdowns
The illicit tobacco market has become increasingly visible across Melbourne’s suburbs, with dozens of tobacco stores raided and numerous firebombings linked to criminal disputes over the lucrative trade.
Critics argue the growth of the market highlights the limitations of previous enforcement efforts and raises questions about why stronger closure powers were not introduced earlier.
The Allan Labor Government says the illicit tobacco trade funds organised crime, undermines public health and places communities at risk.
This year’s State Budget includes $13.4 million to expand Tobacco Licensing Victoria’s inspectorate and fund the new closure powers, building on a broader $46 million investment in the state’s tobacco licensing regime.
Whether the tougher laws will significantly disrupt the black market remains to be seen.
Previous crackdowns have resulted in large seizures and hundreds of inspections, yet illegal tobacco remains readily available in many parts of Victoria, with organised crime groups continuing to profit from the trade.
The legislation must pass Parliament before the new powers can take effect.

