Victoria’s Illegal Tobacco Crackdown Has Entered the Enforcement Phase – Are You Licensed?

Victoria’s approach to tobacco regulation has fundamentally shifted.

As of 1 February 2026, the Victorian Government has moved its tobacco licensing scheme into the active enforcement phase. That means selling tobacco without a licence is no longer just a compliance risk — it’s a serious legal offence attracting substantial fines and potential imprisonment.

For retailers, this isn’t theoretical. Enforcement is now underway.

If you sell tobacco products in Victoria, you must hold a valid licence — or have lodged a compliant application prior to enforcement commencing.

What Has Changed in Victoria?

Victoria introduced a mandatory tobacco licensing scheme requiring all retailers and wholesalers selling tobacco to be licensed through Tobacco Licensing Victoria.

While licences have technically been required since 1 July 2025, the Government allowed a transition period. That period is now over.

From 1 February 2026:

• Selling tobacco without a licence is unlawful

• Inspectors can attend premises and conduct compliance checks

• Illicit tobacco can be seized

• Licences can be suspended or cancelled

• Matters can be referred to Victoria Police

The scheme is backed by $46 million in funding and is specifically designed to disrupt the illicit tobacco market and its links to organised crime.

This is no longer an administrative scheme — it is an enforcement regime.

The Penalties Are Significant

Under Victoria’s strengthened laws:

• Selling illicit tobacco can attract up to 15 years’ imprisonment

• Businesses face fines exceeding $1.8 million

• Selling without a licence can result in substantial financial penalties

• Possession of illicit tobacco for commercial purposes is also an offence

These are serious consequences — particularly for retailers who may not fully understand the new framework.

Who Needs a Tobacco Licence?

You require a licence if you:

• Sell cigarettes, cigars or loose tobacco

• Operate a convenience store, supermarket, petrol station or bottle shop selling tobacco

• Supply tobacco wholesale

• Sell tobacco products alongside liquor

Many businesses that already hold liquor licences assume they are covered — they are not.

Tobacco licensing is a separate regulatory framework, with its own application process, probity requirements and compliance obligations.

What Enforcement Looks Like on the Ground

Enforcement is being led by Tobacco Licensing Victoria inspectors, who have the power to:

• Enter premises

• Inspect records and stock

• Seize illicit tobacco products

• Issue infringement notices

• Suspend or cancel licences

• Share intelligence with Victoria Police

There is also now a public register of licensed retailers, meaning unlicensed businesses are increasingly visible.

Retailers who delayed their application are now exposed.

Why This Matters for Retailers

This change signals a clear policy direction from the Victorian Government:

The focus has shifted from encouraging compliance to actively policing non-compliance.

For legitimate operators, this is a positive step. It levels the playing field and targets operators profiting from illicit supply.

But for retailers who have not yet secured a licence — or who are unsure whether they meet the requirements — the risk is now real.

How On Tap Liquor Consulting Can Assist

We are now offering tobacco licence consultancy services across Victoria through On Tap Liquor Consulting.

Our role is to make the process clear, compliant and efficient.

We can assist with:

• Determining whether you require a retailer or wholesaler licence

• Preparing and lodging licence applications

• Ensuring documentation meets regulatory requirements

• Advising on compliance obligations and record-keeping

• Assisting with licence variations

• Responding to regulatory correspondence

• Strategic advice if you have compliance concerns

We already work extensively within Victoria’s liquor licensing framework, and tobacco regulation is now moving in a similar direction — structured, regulated and enforcement-driven.

If you sell regulated products, compliance is no longer optional.

Now Is the Time to Act

If you are unsure about your tobacco licensing status — or if you have not yet applied — now is the time to address it.

The enforcement phase has commenced.

Waiting for an inspection is not a strategy.

If you would like confidential advice about your situation, contact On Tap Liquor Consulting to discuss how we can assist.