Key facts
- Victoria, Australia, introduced new laws to give authorities more powers to shut down businesses selling illegal tobacco.
- Businesses that fail to comply with closure orders could face fines exceeding A$2.4 million and up to 20 years in jail.
- Nicotine consumption in Australia rose by 40% between 2017 and 2025.
- An estimated 80% of nicotine products consumed by Australians last year were from the black market.
- High prices of legal tobacco products, due to federal taxes, are blamed for fueling the rise in illegal sales.
The Australian state of Victoria has introduced new legislation aimed at shutting down businesses that sell illegal tobacco. These laws, if passed, will empower police and the state's tobacco licensing regulator to issue closure notices and seek court orders for extended business closures. Penalties for non-compliance include fines exceeding A$2.4 million and potential jail sentences of up to 20 years. This crackdown coincides with new data from the Australian Bureau of Statistics (ABS) indicating a significant rise in nicotine consumption across the country. Between 2017 and 2025, nicotine use surged by 40%, far exceeding the population growth rate of 14%. The ABS estimates that 80% of the cigarettes and other nicotine products consumed in Australia last year were sourced from the black market. This trend is attributed to the high cost of legal tobacco products, which have nearly tripled in price since December 2016 due to annual excise increases, while illegal tobacco prices have remained relatively stable.