New South Wales (Australia) will recruit 30 additional full-time tobacco inspectors to strengthen the state’s Centre for Regulation & Enforcement, expanding the statewide compliance team to 78 staff as authorities intensify efforts against illicit tobacco and vaping products. Since tougher enforcement laws took effect in November 2025, NSW Health and police have closed 66 retailers, including five Sydney Inner West tobacconists last week, while January inspections seized approximately 560,000 cigarettes, 98 kilograms of illicit tobacco, and more than 6,000 illegal vaping products valued at about A$830,000 ($589,000). The government is advancing further legislative measures, including landlord liability provisions and penalties exceeding A$1.5 million ($1.1 million) and seven years’ imprisonment for commercial-scale illicit tobacco offences, as officials warn high federal excise taxes continue to drive demand for illegal products and fuel evolving retail tactics such as QR code and social media-based sales.
Tag: Australia
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Aussies Stop $700M in Illegal Nicotine Products at Border in Q2
Australian authorities intercepted illicit tobacco and vaping products representing an estimated AUD 1 billion ($700 million) in evaded duties during the second quarter of the 2025–26 financial year, according to the Australian Border Force (ABF). The agency seized more than 467 tons of illegal cigarettes and loose-leaf tobacco through intensified offshore and domestic enforcement operations, alongside growing vape-related detections. Major seizures included 14.4 million cigarettes from China, 2.5 tons of molasses tobacco concealed in cargo, 52,800 vapes hidden in a shipment from Kuala Lumpur, and 5.4 million cigarettes in a falsely declared container from Poland.
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Australians Seize Machine Capable of Making 3.5M Cigarettes a Day
Australian authorities seized a cigarette manufacturing machine capable of producing 3.5 million cigarettes a day during a raid on a Sydney storage unit linked to an alleged illicit tobacco syndicate, the Australian Border Force (ABF) said. The Rouse Hill facility also contained 7.5 kilograms of loose tobacco, nearly 6,000 vaping device components, and suspected counterfeit packaging. No arrests have been made, and investigations with NSW Police are ongoing.
The seizure comes amid a broader crackdown on illegal tobacco products, with the ABF reporting more than 2.5 billion illicit cigarettes seized nationally in 2024–25 and a federal review estimating illegal products account for at least half of Australia’s tobacco market. NSW Health has also closed 52 stores in recent weeks under expanded enforcement powers targeting suspected illicit tobacco and vape sales.
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CAPHRA Tells Aussie Senate to Look at New Zealand
In response to recent announcements across Australia about increasing enforcement in its battle against illicit tobacco and nicotine products, the Coalition of Asia Pacific Tobacco Harm Reduction Advocates (CAPHRA) submitted evidence to Australia’s Senate directly comparing New Zealand and the Philippines—both with regulated vaping markets and declining smoking rates—to India and Thailand, where total bans have created underground markets with zero safeguards and rampant youth access.
CAPHRA said Australia and New Zealand are taking sharply different approaches to tobacco control, with contrasting outcomes reflected in recent data. New Zealand, which allows regulated access to vaping products alongside smoking-cessation support, has reduced adult daily smoking to 6.8%, among the lowest rates globally, while youth smoking has fallen to 3.2%, down from 19.2% a decade ago. Australia, by contrast, has maintained strict prohibitions on nicotine vaping products and focused heavily on enforcement against illicit tobacco, spending about A$157 million ($105 million) on policing and regulatory measures, including appointing a national illicit tobacco coordinator. Despite these efforts, authorities estimate Australia lost A$6.7 billion ($4.5 billion) in tobacco excise revenue in 2023–24, and the illicit tobacco market is valued at roughly A$4 billion ($2.7 billion).
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Aussie Tobacco Retailers Warned to File for Licenses
Less than two weeks ahead of mandatory enforcement under Victoria, Australia’s new tobacco licensing scheme, the state’s Premier and Minister for Casino, Gaming and Liquor Regulation is urging all tobacco retailers and wholesalers to apply for a license before the February 1 deadline. The program, part of a broader crackdown on illicit tobacco and organized crime, allows businesses that apply before the deadline to continue trading while applications are assessed, while anyone applying on or after February 1 would have to wait for approval.
Tobacco Licensing Victoria, supported by Victoria Police, will enforce compliance with penalties of up to A$170,948 ($114535) and five years’ jail for individuals selling without a license, with businesses facing fines exceeding A$854,000 ($572,000). The initiative, backed by A$46 million ($30.8 million) in the 2025/26 budget, also grants inspectors powers to suspend or cancel licenses, seize illegal products, and pursue court action, with strict eligibility criteria ensuring licenses are granted only to “fit and proper” applicants.
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Australian Officials Seize $1.1M in Illegal Tobacco Products
Two men in Australia have been charged following the seizure of more than A$1.6 million ($1.1 million) worth of illegal tobacco and vaping products during a joint law enforcement operation in Sydney’s southwest district.
Police executed a search warrant at a Riverwood warehouse January 19, seizing 40,000 branded cigarettes, more than 600 kg of molasses tobacco, loose-leaf tobacco, nicotine pouches, vapes, and other assorted cigarettes, along with mobile phones and electronic devices. A 44-year-old man was arrested at the premises and charged with possessing a commercial quantity of vaping goods, while a 26-year-old man was arrested nearby and charged with dealing with the proceeds of crime and possession of a prohibited weapon after police allegedly found cash and an electronic stun device in his vehicle.
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Australia Hoping Enforcement Will Curb Illicit Tobacco Crisis
Western Australia is moving to significantly strengthen its response to the illicit tobacco trade, announcing the creation of a dedicated taskforce led by WA Police Superintendent Steve Post, newly appointed as the state’s “illicit tobacco czar.” The government says the initiative is a response to escalating criminal activity linked to illegal tobacco, including arson attacks, firebombings, and drive-by shootings targeting retail outlets across Perth and regional areas. Estimates suggest illicit cigarettes now account for at least half of Australia’s tobacco market, costing taxpayers up to A$11.8 billion ($7.9 billion) annually.
The taskforce will sit within the Department of Health and draw on a mix of retired officers and serving police transitioning from frontline duties, to tighten compliance and enforcement under tougher tobacco laws currently being drafted. An initial A$5 million ($3.4 million) funding allocation will boost the Tobacco Compliance Unit to around 40 full-time equivalent staff, with new powers expected to allow authorities to immediately shut down non-compliant premises.
The WA move mirrors intensifying crackdowns in other states, particularly New South Wales, where the Minns government has launched dozens of raids, confiscated illicit cigarettes and vapes, and issued 90-day and longer closure orders. However, industry observers and local governments warn that enforcement alone is struggling to keep pace with the scale of the black market, as, for example, law loopholes allow shuttered tobacco retailers to reopen nearby under generic “shop” or “retail premises” classifications, undermining enforcement efforts.
Public policy critics and harm reduction advocates argue the crisis reflects deeper structural failures rather than a lack of enforcement. The Coalition of Asia Pacific Tobacco Harm Reduction Advocates has told a Senate inquiry that Australia’s illicit tobacco problem is the predictable outcome of restrictive policies that eliminated legal access to safer nicotine alternatives while demand persisted.
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Van Stopped with Nearly $500K in Illicits in Australia
A man has been charged after cigarettes and tobacco worth A$752,000 ($496,000) were seized during a road stop in Australia’s south yesterday (December 18). Officers stopped a van on the southbound lane of the Hume Highway, Gundagai, for the purpose of random testing. Police searched the van and seized 400 kg of loose-leaf tobacco and 235,000 illicit cigarettes.
The man was issued with a field court attendance notice for goods in custody, to appear in Gundagai Local Court in February.
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Queensland Shuts 148 Stores, Seizes $10.4M in 10-Day Blitz
Queensland authorities closed 148 stores and seized more than A$15.7 million ($10.4 million) worth of illegal smoking products in a 10-day enforcement operation that ended last week. Dubbed Operation Major, the blitz targeted illicit cigarettes, loose tobacco, vapes, vaping liquids, and nicotine pouches, resulting in the confiscation of 11.8 million cigarettes, 1.7 tons of loose tobacco, 87,000 vapes, 4.2 liters of vaping liquid, and 270,000 nicotine pouches.
The closures were executed under new laws allowing Queensland Health to shut stores for 90 days without a court order. Health Minister Tim Nicholls said the operation demonstrates the state’s commitment to cracking down on illegal tobacco and vaping products, warning that black-market operators will be aggressively pursued.
Theo Foukkare, CEO of the Australian Association of Convenience Stores, welcomed the move but noted that illicit traders are shifting online due to federal inaction on illegal tobacco. He emphasized the need for coordinated national measures to redirect consumers to the regulated market.
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Extent of Australia’s Illicit Tobacco Crisis Coming to Light
Australia’s illicit tobacco trade is believed to be nearing double the size of the legal market, with excessive excise rates driving a surge in smuggled cigarettes, illicit tobacco and e-cigarette commissioner Amber Shuhyta warned. She told the Senate that estimates of black-market products may be approaching 65% of all tobacco sold, fueled by retail cigarette prices approaching A$50 ($33) a pack. Smuggled packs sell for about A$15 ($9.90), pulling revenue away from legitimate retailers and the federal budget.
Legal tobacco sales are collapsing, she said. Supplier Metcash reported a 35% drop in sales over the six months to October, while Australia’s tobacco tax take has fallen from 0.8% of national income to below 0.3% in five years—creating a A$69 billion ($45.5 billion) budget shortfall.
Meanwhile, organized crime groups competing for control of the illegal tobacco and vaping market have been linked to murders, extortion, and hundreds of fire bombings nationwide. Border Force Commissioner Gavan Reynolds said officers seized more than 2.5 billion cigarettes last financial year and intercepted 439 tons of loose tobacco, worth an estimated A$4.4 billion ($2.9 billion) in evaded duty. He said enforcement now targets the supply chain “before the border, at the border, and post-border.”