The Victorian government is urging tobacco retailers and wholesalers to secure a mandatory licence before the impending deadline on January 31, 2026. Starting February 1, 2026, it will become illegal to sell tobacco products in Victoria without this licence, as the state intensifies efforts to combat illicit trade and undermine organised crime’s influence in the industry.
Enver Erdogan, the Minister for Casino, Gaming and Liquor Regulation, confirmed that more than 3,300 applications have been submitted to Tobacco Licensing Victoria since the scheme commenced in July. This requirement applies to all sellers, including supermarkets, petrol stations, convenience stores, and online retailers.
The government has made clear that the consequences for non-compliance will be severe. Individuals found selling tobacco without a licence could face fines of up to $170,948 or even five years in prison. Businesses are at risk of penalties exceeding $854,000, while those involved with illicit tobacco could face fines as high as $1.8 million and 15-year prison sentences for individuals.
Strict Compliance Measures and Regulatory Oversight
To ensure only legitimate operators can access the market, a rigorous fit and proper person test will be implemented for all applicants. The regulatory body retains the authority to refuse licences based on an applicant’s criminal history or known criminal associations, effectively shutting out any criminal elements from the legal market.
Starting in February, licensing inspectors will be deployed across Victoria to conduct compliance checks and confiscate illegal products. This initiative, backed by a $46 million investment in the Victorian Budget 2025/26, marks a collaborative effort between the new regulator and Victoria Police. The intelligence-led approach aims to disrupt serious organised crime networks that currently benefit from illegal tobacco sales.
Businesses that submit their applications before the February 1 deadline may continue selling tobacco while their applications are being processed. However, any retailer applying after this date will be required to halt all tobacco sales until their licence is officially granted. To prevent potential prosecution, legitimate retailers are encouraged to complete their applications through Service Victoria as soon as possible.
The government’s proactive stance aims not only to regulate the tobacco industry but also to protect public health and safety by dismantling the criminal operations that thrive on illicit sales.
