In short:
With legal cigarette prices among the highest in the world, illegal tobacco has become widespread across Wyndham, undercutting retailers and fuelling organised crime. From 1 February 2026, unlicensed tobacco sales will attract heavy fines or jail time.
Deadline Fast Approaching
Tobacco retailers across Wyndham are facing a hard deadline, with mandatory licensing enforcement set to begin on 1 February 2026 as Victoria tightens controls on tobacco sales.
The Allan Labor Government says the move is aimed at disrupting the illegal tobacco trade, which has expanded rapidly as cigarette prices continue to rise.
Legal tobacco in Australia is now among the most expensive globally, with some packets exceeding $60, pushing many consumers toward cheaper, unregulated alternatives.
Local retailers say the price gap has become impossible to ignore. In suburbs across Wyndham, illicit tobacco products are widely reported to be selling for a fraction of the legal price, undercutting licensed businesses and creating a steady market for organised crime.
Under the new rules, any business selling tobacco — including convenience stores, petrol stations, supermarkets, liquor stores and online retailers — must hold a licence issued by Tobacco Licensing Victoria.
Minister for Casino, Gaming and Liquor Regulation Enver Erdogan says businesses must apply by 31 January 2026 to continue trading while their application is assessed. Any retailer applying on or after 1 February must stop selling tobacco until approval is granted.
More than 3,300 applications have already been lodged since the scheme opened on 1 July, with enforcement set to ramp up across metropolitan Melbourne, including Wyndham.
Inspectors will work alongside Victoria Police, with powers to seize illegal tobacco, suspend or cancel licences and pursue criminal charges.
Penalties are severe. Individuals caught selling tobacco without a licence face fines of up to $170,948 or up to five years in jail. Businesses face penalties exceeding $854,000.
Selling illicit tobacco carries fines of up to $366,318 or up to 15 years in prison, with corporate penalties reaching more than $1.8 million.
Licences will only be granted to people deemed fit and proper, allowing authorities to refuse applications based on criminal history or known associates.
The Victorian Budget 2025/26 allocated $46 million to establish the licensing scheme, with the government arguing enforcement is needed to counter a black market largely fuelled by the high cost of legal tobacco.
Applications are processed through Service Victoria.
