Australia's Illicit Tobacco Trade Adapts Amid Major Melbourne Crackdown

September 30, 2026
Australia's Illicit Tobacco Trade Adapts Amid Major Melbourne Crackdown
  • 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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