Victoria, Australia, Plans Tobacco Licensing System with Fines up to AUD 1.7M

Victoria's Premier Jacinta Allan announced that her Labor government plans to introduce a bill to Parliament aimed at establishing a tobacco licensing system, according to The Canberra Times on November 12th.

"There will be massive consequences, massive penalties for people who breach this regime," Jacinta Allan told reporters. "These penalties are the toughest penalties in the nation."

According to the plan, individuals caught selling illegal tobacco and e-cigarettes could face fines exceeding 355,000 Australian dollars or up to 15 years in prison, while businesses may face fines exceeding 1.7 million Australian dollars.

It has been reported that over 100 cases of arson are related to organized crime groups from the Middle East and illegal motorcycle gangs vying for control of the lucrative black market for tobacco and e-cigarettes. The Illegal Tobacco Taskforce of the Victoria Police has conducted at least 200 raids over the past 12 months, arresting 80 individuals and seizing over 37 million Australian dollars worth of illegal tobacco, e-cigarettes, and cash.

According to the law, only licensed retailers are allowed to sell tobacco products. Currently, there is no detailed information provided about the implementation costs of this program or the cost of obtaining a license.

The inspectors of the new tobacco regulatory agency will replace police officers in issuing fines, similar to the alcohol licensing system. The police will have greater powers to more easily and swiftly raid, search, and seize illegal products from retailers involved in organized crime, while also being able to impose more licensing conditions.

Suppliers must also undergo appropriate personnel testing, and may be denied a license based on their history and affiliated individuals.

"Our goal is to make sure that we run organized crime out of this state," Police Minister Anthony Carbines said.

Victoria Police Chief Commissioner Shane Patton said officers would be able to provide intelligence to the regulator when making its rulings. 

"The significant penalties would deter black market operators but won't end the turf war overnight," Mr Patton said.

In September, Queensland implemented a tobacco licensing system, making Victoria the last state or territory in Australia without a tobacco licensing system.