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Shops selling illegal tobacco in Victoria face closure from today

September 8, 2026 · Australian Broadcasting Corporation

New Victorian laws let inspectors shut down stores caught selling illegal cigarettes, with fines up to $2.5 million for those who don't comply.

Starting today, stores in Victoria that sell illegal tobacco products can be forced to close their doors. The Victorian government has introduced new laws giving inspectors the power to hand out closure notices to shops breaking the rules. Inspectors from Tobacco Licensing Victoria will be visiting stores across the state without warning to check whether they are following the law.

When a shop receives a closure notice, its name will be listed on the Tobacco Licensing Victoria website so the public can see which stores have been shut down. Victoria Police officers also have the power to issue these notices if they find illegal tobacco being sold. The closure notices can last up to 90 days, but shops can also be closed for much longer if the case goes to the Magistrates' Court.

Business owners who ignore the orders face serious consequences. They could be fined up to $2.5 million and sent to jail for up to 20 years. Premier Ben Carroll warned sellers directly, saying inspectors could show up 'any day at any moment' and put a bright sign on the door of any shop caught breaking the law.

A recent study paid for by the Cancer Council Victoria found that most people support the new rules. Seventy-two percent of adults in Victoria said shops should be shut down right away if they are caught selling illegal tobacco. Cancer Council Victoria chief executive Todd Harper said that businesses 'flouting the rules cannot be allowed to keep their doors open.'

At the same time, there is a big debate happening at the national level about taxes on cigarettes. Both the federal Coalition and the party One Nation have promised to cut the tobacco excise — a tax added to the price of cigarettes — if they win the next election. The Coalition wants to cut the tax by 80 percent, while One Nation wants to cut it by 75 percent and freeze any increases for three years. Both parties say the high tax is what drives people to buy cheaper, illegal tobacco in the first place.

Premier Carroll disagreed with cutting the tax. He said the government should spend more money on public health instead. He also pointed to Canada as a warning, saying that when Canada cut its tobacco tax in the past, the black market for illegal tobacco actually grew bigger, not smaller.

Experts are split on what the best solution really is. Some believe that lowering the tax would mean people wouldn't need to buy illegal tobacco anymore. Others argue that criminals would simply lower the price of illegal products to keep their customers, so cutting the tax wouldn't solve the problem at all.

"If you are selling illegal tobacco, expect an inspector any day at any moment and expect a fluoro sign on the front of your door saying this shop has been closed."

Comprehension quiz preview

1. How long can a closure notice initially last under the new Victorian laws?

  • A30 days
  • B60 days
  • C90 days
  • D120 days

2. What percentage of adults in Victoria said illegal tobacco shops should be shut down straight away?

  • A52 percent
  • B62 percent
  • C82 percent
  • D72 percent

3. What is the maximum fine a business owner can face for ignoring a closure order?

  • A$2.5 million
  • B$1 million
  • C$500,000
  • D$5 million

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