New enforcement powers are now in effect in Victoria, giving Tobacco Licensing Victoria (TLV) and Victoria Police the power to close premises involved in the illicit tobacco trade.
From 9 September 2026, authorities can issue short-term closure notices for up to 90 days where premises are involved in selling, supplying or possessing illicit tobacco, or operating a tobacco supply business without a licence.
Authorities can also apply to the Magistrates’ Court for longer-term closure orders of more than 90 days.
Importantly, a closure generally applies to the entire premises, not just tobacco sales. A closed store cannot continue selling other products and, unless an exemption applies, people cannot enter the premises while the closure is in effect.
MGA welcomes the commencement of these powers as an important step towards disrupting illicit operators that continue to undermine legitimate retailers.
MGA CEO Martin Stirling said stronger enforcement is critical if Victoria is to make meaningful progress against the illicit tobacco market.
“For too long, legitimate retailers have watched illicit tobacco operators trade openly in their communities while businesses doing the right thing have carried the cost of complying with the law,” Mr Stirling said.
“Giving authorities the ability to actually close these stores is an important step. What matters now is that these powers are used consistently and effectively so we start seeing illicit operators shut down and kept out of our communities.”
Significant penalties for ignoring closure orders
The new powers are backed by significant penalties.
Companies that continue supplying commercial quantities of illicit tobacco from closed premises can face penalties of up to $2.5 million, while individuals can face up to 20 years’ imprisonment.
The Victorian Government has also committed $13.4 million to triple the number of TLV inspectors, with inspectors already seizing more than $10.6 million in illicit products and issuing more than 100 infringement notices.
MGA calls for further action
While MGA welcomes the new closure powers, we believe there are still important gaps that should be addressed.
Under the new laws, a landlord can terminate a commercial lease where the Magistrates’ Court has issued a long-term closure order. However, the legislation does not provide that same specific termination right where authorities issue a short-term closure notice of up to 90 days.
This could leave landlords who want to remove an illicit operator from their property unable to rely on the new Tobacco Act termination power during the initial closure period.
MGA also wants stronger consequences for landlords who knowingly allow their premises to be used for illicit tobacco activity. Whilst fines can be a useful deterrent, courts should be given the option to impose prison terms in particularly serious instances.
“The closure powers are a good start, but we need to make sure the legislation doesn’t leave opportunities for operators to simply reopen or continue their activities once a short-term closure expires,” Mr Stirling said.
“Landlords who genuinely want to remove an illicit operator should have the tools to do so, while those who knowingly facilitate illegal activity should face consequences strong enough to act as a genuine deterrent.”
Report suspicious tobacco activity
MGA encourages members to continue reporting suspected illicit tobacco activity.
Reports can assist TLV’s compliance and enforcement activities, and members can also view the Victorian Government’s current list of stores subject to tobacco closure notices and orders.
For more information, to report suspicious activity or see a list of closed stores, visit Tobacco Licensing Victoria, or see the resources below.
