Tobacco retailers and wholesalers across Victoria have been urged to apply for a licence, with less than two weeks to go before tough new enforcement powers come into force as part of the Allan Labor Government’s crackdown on illicit tobacco and organised crime.
From 1 February 2026, it will be illegal to sell tobacco in Victoria without a licence, as the state steps up efforts to dismantle the black market and the criminal networks behind it. Enforcement will be backed by close co-operation between the regulator, Victoria Police and other authorities.
Minister for Casino, Gaming and Liquor Regulation Enver Erdogan said businesses must lodge their applications by 31 January to avoid being locked out of the market when licensing becomes mandatory.
More than 3,300 applications have already been lodged with Tobacco Licensing Victoria since the scheme opened on 1 July, with a surge expected as the deadline approaches.
Under the new rules, anyone selling tobacco — including supermarkets, convenience stores, liquor outlets, petrol stations and online retailers — must hold a valid licence. Businesses that apply before 1 February will be allowed to continue trading while their applications are assessed, but those who apply on or after that date will have to wait until a licence is granted before selling any tobacco.
Licensing inspectors will be on the ground from 1 February to ensure compliance and take action against offenders. Penalties are severe, with individuals facing fines of up to $170,948 or up to five years’ jail for selling tobacco without a licence, while businesses could be fined more than $854,000. Selling illicit tobacco carries even harsher penalties, including fines of up to $366,318 or up to 15 years in prison, and business penalties exceeding $1.8 million.
Licences will only be issued to people deemed fit and proper, with the regulator able to refuse applications based on a person’s history or known associates. Tobacco Licensing Victoria will also have expanded powers to suspend or cancel licences, seize illegal products and take court action, working closely with police to target serious and organised crime.
The new regime is backed by $46 million in funding from the Victorian Budget 2025/26 to establish the regulator and strengthen enforcement.
Mr Erdogan said the reforms were designed to protect legitimate businesses and choke off criminal activity. He said Victoria was “working to smoke out illicit tobacco operators, with tough penalties for anyone selling illicit tobacco or selling tobacco without a licence from February”, and urged lawful retailers to act quickly so the crackdown could continue without disruption.
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