Key Points:
·Victoria, Australia is set to implement a tobacco licensing system, but enforcement has been postponed until 2026 and does not cover e-cigarette sales.
·The cost of tobacco licenses in the state is high (1100-1500 Australian dollars), significantly higher than in other states, leading to dissatisfaction among retailers.
·With limited enforcement resources, there are only about 14 inspectors in the entire state, and they do not have the authority to shut down illegal tobacco shops.
·Industry groups and law enforcement are calling for expanded enforcement powers, lower license fees, and inclusion of e-cigarettes in the regulatory framework.
According to a report by Herald Sun on April 28, Victoria is planning to launch the tobacco sales licensing system on July 1, 2025, but full implementation is expected to be delayed until 2026 due to enforcement arrangements. The newly disclosed system responsible for enforcement will not investigate illegal e-cigarette sales, as these products fall under federal law.
Retailers have expressed dissatisfaction with multiple arrangements made by the state government, criticizing the delayed launch and high costs of the licensing program, as well as the lack of authority for inspectors to shut down stores selling illicit cigarettes. Victoria is the only state that has not yet established a tobacco retailer registry system, despite relevant recommendations dating back to 2022. Under the current plan, the cost of a tobacco retail license will range from $1,100 to nearly $1,500 AUD, compared to less than $475 AUD in Queensland and only $340 AUD in South Australia.
David Inall, CEO of the Australian Independent Grocers Association (MGA), highlighted that the tobacco sales in many independent grocery stores have significantly decreased, and the high cost of licenses may force some businesses to stop selling tobacco. Inall emphasized that there are currently only about 14 inspectors covering the entire state.
"If compliant retail businesses bear the full cost but are unable to prevent illegal shops from continuing to operate, this would be an unacceptable outcome."
The Victoria police have also requested to follow the practice of the Alcohol Control Reform Act, allowing for the closure of stores selling illegal tobacco. Jason Kelly, head of the Lunar Task Force, told a parliamentary committee in 2024 that closing non-compliant stores and revoking permits is crucial to combating illegal trade. He pointed out that one of the biggest challenges for law enforcement agencies is that, even after searches, arrests, and prosecutions, the stores involved in cases are still able to continue operating the next day.
In addition, the "Survey on E-cigarette and Tobacco Control" put forward 27 recommendations, but the state government only "fully supported" 7 of them. A state government spokesperson further clarified that inspectors will not investigate illegal sales of e-cigarettes and tobacco products, as enforcement in this regard falls under the jurisdiction of the Therapeutic Goods Administration (TGA), which has delegated some enforcement powers to state health departments.
Although the TGA provides funding to assist local governments in inspections, local environmental health officials are generally cautious about participating in tobacco enforcement due to the serious infiltration of organized crime in the market. The state government has stated that local councils will continue to report illegal activities to the state health department, TGA, and police, and will take on the responsibility of educating retailers.
The CEO of the Australian Association of Convenience Stores (AACS), Theo Foukkare, has stated that Victoria is currently facing a "public safety emergency". He supports the introduction of a tobacco licensing system, believing it to be a "necessary and overdue reform", but emphasizes that without significant adjustments to enforcement methods and licensing fee structures, the desired outcomes will not be achieved.
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