Australia's Illicit Tobacco Trade Adapts Amid Major Melbourne Crackdown
September 30, 2026
Victoria has launched a sweeping crackdown on illicit tobacco, granting Tobacco Licensing Victoria powers to close stores for up to 90 days, with the new measure taking effect in early September.
In the first month, 61 shops linked to organised crime were shuttered under the 90-day closure powers across four weeks.
Authorities caution that the crackdown is just starting, as operators shift to non-traditional venues and online platforms to continue distribution and evade detection.
Detective Inspector Anthony Gasparini said the illicit trade fuels broader crime and vowed continued inspections, including after hours and on weekends, to dismantle networks.
The national illicit tobacco market is valued at more than $8.5 billion, with black-market cigarettes dominating consumption and illicit vapes commanding the vast majority of the market, while prices for illicit cigarettes have remained stable or fallen in some areas.
Analysts describe these adaptations as classic black-market tactics, noting organized crime in Victoria operates in a multibillion-dollar ecosystem capable of rapid countermeasures.
Operators are already adapting by selling illicit tobacco after hours, restricting stock deliveries, and moving stock to vehicles or disguised storage to dodge inspections.
TLV chief operating officer Bree Oliver stated the campaign seeks to stamp out illegal operators, with enforcement guided by intelligence, risk assessment, and collaboration with police and regulators.
Despite expanded powers and staffing, TLV has yet to secure criminal prosecutions, though authorities have seized about $11.4 million worth of illicit tobacco to date.
Investigations target offshore and other organised-crime networks, with detectives pursuing financial flows and aiming to disrupt banking access for offending businesses.
Authorities have seized millions of illegal cigarettes, tens of thousands of vapes, over 120 kilograms of loose tobacco, and more than $500,000 in cash since the powers began.
Enforcement is led by the VIPER Taskforce and TLV, with closures across multiple Melbourne suburbs and regional towns, and more visits planned statewide.
Summary based on 2 sources
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Sources

The Age • Sep 30, 2026
‘No cigarettes Monday to Friday’: How criminals are evading tobacco inspectors