Finally, the government starts its crackdown in illicit tobacco
Tobacco retailers and wholesalers are this week being encouraged to apply for a tobacco licence, less than two weeks out from a campaign of enforcement designed to hit the illicit tobacco trade and organised crime which has infected every town in the state.
THE State Government is finally moving to crack down on illicit tobacco sales.
Tobacco retailers and wholesalers are this week being encouraged to apply for a tobacco licence, less than two weeks out from a campaign of enforcement designed to hit the illicit tobacco trade and organised crime which has infected every town in the state.
Enforcement, says the state government, will be supported by close co-operation between the regulator, Victoria Police and other authorities to stamp out the illegal tobacco trade.
Whether local councils will have a role to play, and if so, how they cover the cost of increased monitoring and enforcement, is not known.
The Sentinel-Times has asked the Minister and local councils to clarify.
It’s not cheap, nor should it be.
An application for a licence submitted before June 30, 2026 (valid until 30 June 2027) will cost $1,175.20
Applications for an annual licence submitted after June 30, will cost $829.60
Minister for Casino, Gaming and Liquor Regulation Enver Erdogan said businesses must lodge their applications before January 31, 2026, ahead of licences becoming mandatory from February 1, 2026.
“Victoria is working to smoke out illicit tobacco operators, with tough penalties for anyone selling illicit tobacco or selling tobacco without a licence from February.”
“As the deadline approaches, we’re urging every legitimate business that sells legal tobacco to apply now, so we can continue our strong crackdown on illegal tobacco and the criminal activity that sits behind it.”
Thousands of applications
More than 3300 applications have already been received by Tobacco Licensing Victoria since the scheme commenced on July 1, with more expected ahead of the deadline.
Anyone who sells tobacco in Victoria will need to apply for a licence if they have not already done so, including supermarkets, convenience stores, liquor stores, petrol stations and online retailers.
Businesses that apply before 1 February can continue to trade while their application is assessed. Anyone who applies on or after 1 February must wait until they are granted a licence before selling tobacco.
From February 1, licensing inspectors will be on the ground to ensure businesses are complying with their obligations and act against those who break the law.
Huge penalties apply
The biggest deterrents are our tough new penalties as anyone found selling tobacco without a licence faces fines of up to $170,948.40 or up to five years in jail – while businesses face fines of more than $854,000.
Anyone caught selling illicit tobacco faces fines of up to $366,318 or up to 15 years in jail, with businesses risking penalties of more than $1.8 million.
Licences will only be granted to fit and proper people who pass a strict test, with the regulator able to refuse a licence based on a person’s history or known associates.
Tobacco Licensing Victoria will have strong new enforcement powers – including suspending or cancelling licences, seizing illegal tobacco products, and court action. They’ll be working closely with Victoria Police to support intelligence‑gathering efforts targeting serious and organised crime.
The Victorian Budget 2025/26 delivered $46 million to establish the new licensing scheme and regulator and help smoke out the illegal tobacco market.
For more information and to apply for a licence through Service Victoria click HERE.
