Tobacco smoking
Nearly 4,000 deaths occur in Victoria and 20,000 nationwide each year due to tobacco. Pixabay

In a bid to combat illicit tobacco trade and curb a turf war, the Victoria government will introduce legislation to establish a licensing scheme for retailers, grant police greater powers and resources to target illegal sellers, and set up a dedicated regulator.

Under the new Tobacco Amendment (Tobacco Retailer and Wholesaler Licensing Scheme) Bill, which the government plans to pass by the end of the year, individuals found selling tobacco without a license could face fines of up to AU$355,000 or 15 years in prison, while businesses could be fined up to AU$1.7 million, The Guardian reported.

The law required all tobacco sales to be conducted by licensed retailers, with fees varying based on the business size. Licenses will be granted only to "fit and proper persons" who pass a strict background check, with criminal history and associations serving as grounds for refusal.

A new tobacco regulator, expected to be established by mid-2025, will be tasked with enforcing the scheme and will include dedicated inspectors. The regulator will have the authority to search shops, suspend licenses, seize illegal items, issue penalties, and share intelligence with the police for further charges.

The new measures were expected to strengthen Victoria police's powers, enabling them to seize illicit products from retailers suspected of having links with organized crime. So far, the police have executed 200 search warrants, arrested 80 individuals, and seized over AU$37 million worth of illegal tobacco and related items.

Premier Jacinta Allan, who called the new law the toughest in the country, stated: "This strict new licensing scheme includes more boots on the ground, more resources on the ground, more powers, particularly more powers for Victoria Police to crack down on the illicit tobacco trade. There will be massive consequences, massive penalties for people who breach this regime and these penalties are the toughest penalties in the nation."

According to figures from the Australian Tax Office, it was estimated that the illegal tobacco trade resulted in the loss of over a billion dollars in tax revenue each year, ABC reported.

Victoria was the sole state or territory lacking a registration or licensing system, which had disrupted police efforts to address the recent surge in arson attacks and firebombings of tobacco stores.

"Understand that if you want to sell these products in the future, you have to be a fit and proper person," police minister Anthony Carbines said. "We'll have details and intelligence to be able to provide to the regulator and whether people are allowed to have these businesses and run these businesses."

The government health agency VicHealth's CEO Dr. Sandro Demaio said that the legislation would help save lives.

Meanwhile, executive manager Michelle Murray cited data that revealed a rise in teenage smoking for the first time in 25 years, supported by the growing use of vapes.

Nearly 4,000 deaths occur in Victoria and 20,000 nationwide each year due to tobacco, making it the leading cause of preventable deaths, as per VicHealth estimates. Additionally, Victoria incurred over AU$600 million in healthcare costs, each year, related to smoking.