The Victorian government has issued an urgent reminder for tobacco retailers and wholesalers to secure their mandatory licenses before a major enforcement initiative begins. As of 1 February 2026, selling tobacco products in Victoria without a license will be illegal, marking a significant step in the state’s effort to combat organized crime within the industry.
Enver Erdogan, the Minister for Casino, Gaming and Liquor Regulation, emphasized that businesses must submit their applications by 31 January. Since the licensing scheme’s launch in July, over 3,300 applications have been received by Tobacco Licensing Victoria. This requirement applies to all vendors, including supermarkets, convenience stores, petrol stations, and online retailers.
The government has warned that non-compliance will result in severe penalties. Individuals caught selling tobacco without a license could face fines of up to $170,948 or a prison sentence of up to five years. Businesses risk penalties exceeding $854,000. Those involved in the illicit tobacco trade face even harsher consequences, with potential fines reaching $1.8 million for corporations and up to 15 years in prison for individuals.
Stringent Licensing Requirements Implemented
A critical aspect of this initiative is the “fit and proper person” test that will be applied to all applicants. The regulator is empowered to deny licenses based on criminal history or associations, ensuring that individuals with ties to criminal activity are excluded from the legal market.
From February onwards, licensing inspectors will be deployed across the state to conduct compliance checks and seize illegal tobacco products. This initiative, which is part of a broader $46 million initiative funded in the Victorian Budget 2025/26, reflects a collaborative effort between the new regulatory body and Victoria Police. The approach aims to disrupt organized crime networks that profit from illegal tobacco sales.
Businesses that submit their applications before the 1 February deadline are allowed to continue trading while their applications are processed. However, retailers who apply after this date must stop all tobacco sales until their licenses are formally issued. Legitimate sellers are urged to complete their applications through Service Victoria as soon as possible to avoid prosecution.
The impending crackdown underscores the Victorian government’s commitment to regulating the tobacco industry and dismantling the influence of organized crime, ultimately promoting a safer environment for consumers and businesses alike.
