The state government has issued a final call for tobacco retailers and wholesalers to secure a mandatory licence, with less than two weeks remaining before a major crackdown on the illicit trade begins. From 1 February 2026, it will be illegal to sell tobacco in Victoria without a licence as the state moves to dismantle the grip of organised crime on the industry.
Minister for Casino, Gaming and Liquor Regulation Enver Erdogan confirmed that businesses must lodge their applications by 31 January.
Since the scheme launched in July, more than 3,300 applications have been submitted to Tobacco Licensing Victoria. The requirement extends to all sellers, including supermarkets, petrol stations, convenience stores, and online retailers.
The government has warned of severe consequences for those who fail to comply. Individuals caught selling tobacco without a licence face fines of up to $170,948 or five years in prison, while businesses risk penalties exceeding $854,000. The stakes are even higher for those dealing in illicit tobacco, with potential fines reaching $1.8 million for corporations and 15-year jail terms for individuals.
A strict fit and proper person test will be applied to all applicants. The regulator holds the power to refuse licences based on criminal history or known associates, ensuring that criminal elements are shut out of the legal market. From February, licensing inspectors will be deployed across the state to conduct compliance checks and seize illegal products.
The $46 million initiative, funded in the Victorian Budget 2025/26, involves close co-operation between the new regulator and Victoria Police. This intelligence-led approach aims to disrupt the serious organised crime networks currently profiting from illegal sales.
Businesses that apply before the 1 February deadline are permitted to continue trading while their application is processed. However, anyone applying after this date must cease all tobacco sales until their licence is formally granted. Legitimate retailers are urged to complete their applications through Service Victoria immediately to avoid prosecution.
