What’s Being Done

What are the authorities doing to stop illicit trade?

In 2024 the Australian Federal Government announced an investment of $188.5 million to support a major Australian Border Force crackdown on the importation of illicit tobacco. The ABF will coordinate and lead federal, state and territory agencies in a renewed and sustained push in the fight against illicit tobacco.

The funding announced will be used for the following:

Stem the flow of illicit tobacco to Australia, in both source and transit countries, before it reaches Australia’s border.
Boost the Australian Border Force’s capacity to combat the illicit tobacco trade at the border, including through increased intelligence sharing and technological improvements.
Bring together stakeholders to deliver a coordinated, multi-agency and multi-jurisdictional response.

There have also been major significant state funding announcements against illicit tobacco and nicotine vaping products, these include:

Over $300 million in new funding has been allocated by governments across Australia to help in the fight against illicit tobacco. (Queensland: $28.5 million – New South Wales: $6.8 million and South Australia: $16 million)
$75 million in increased funding for the regulation of vaping products by the Commonwealth Government.

These funding commitments come off the back of the introduction of amendments to the Public Health (Tobacco and Other Products) Act 2023 to include for the first time the need to also focus on fighting back against illicit tobacco, including the establishment of a dedicated Federal Illicit Tobacco & E-Cigarette Commissioner.

As a result of further investment in the fight against illicit tobacco we have also seen several states across Australia introduce and establish tobacco licensing schemes for legal retailers to register their businesses with relevant state authorities, these include:

The New South Wales Parliamentary Committee on Law and Safety’s Report into E-Cigarette Regulation and Compliance has recommended a nicotine licensing scheme for NSW.
A Queensland state-wide tobacco licensing scheme and further enhanced penalties which commenced on the 1 September 2024.
The Victorian State Government announced in March 2024 its intention to introduce legislation for a nicotine licensing scheme.
The South Australian State Government has passed legislation to establish tougher penalties of up to $1.5 million for some breaches including further penalties for trading without a licence and selling illicit tobacco products.

You can continue to follow these important announcements in relation to the fight against illicit tobacco being introduced via the Stop Illicit website at: www.stopillicit.com

Federal and State Penalties

Federal Penalties

You can be fined $626,000 for individuals and $6.2 million as a corporation for selling illicit tobacco products.
Supplying nicotine vaping products is punishable with a fine of $1.565 million or up to 7 years imprisonment.

Tap on a state or territory to find out more about the punishments for the sale, supply, and possession of illicit tobacco and vaping goods.

What is illicit tobacco?

Illicit tobacco is tobacco that is grown, manufactured and/or produced in Australia without an appropriate excise licence, or imported into the domestic market without customs duty being paid.

As loose tobacco, it is commonly known as ‘chop-chop.’

In cigarettes, it is commonly known as contraband or counterfeit.

“Organised crime will permeate and infiltrate industries to exploit opportunities where there is the potential or actual realisation of securing massive profits from their illegal activities. There has been well-documented infiltration and involvement of criminal syndicates in other industries over the years and it is concerning to see evidence of criminal activity manifesting in the tobacco and vape industry.”
Queensland Crime and Corruption Commission

Types of Illicit Tobacco

The illegal tobacco trade falls broadly into four categories

Contraband

Genuine tobacco products that are produced for lawful distribution in their market of intended destination but illegally diverted into a different market.

Illicit Whites

Tobacco products that are generally legally produced in a market and which are smuggled into another market where they have limited or no legal distribution.

Counterfeit

Tobacco products that have been manufactured without the permission of the trademarks rights holder.

Unbranded Tobacco

Tobacco sold as finely cut loose leaf tobacco in a range of pack sizes made in roll-your-own form, also known as ‘chop chop’.

Australian Capital Territory

Supplying illicit cigarettes is punishable with a fine of up to $40,500 for corporates.

Supplying illicit vapes or vaping substances is punishable with a fine of up to $405,000 for corporates.

New South Wales

Supplying illicit tobacco is punishable with fines of $11,000 for an individual and $55,000 for a corporation.

For the illegal sale of e-cigarettes containing nicotine the maximum penalty is $1,650 and/or 6 months imprisonment.

Northern Territory

Selling tobacco products without a prescribed health warning is punishable with a fine up to $18,500.

Supplying a Schedule 4 vaping good without authorisation is punishable with up to 2 years imprisonment or a fine of up to $37,000.

Queensland

Supplying illicit tobacco and nicotine vaping products is punishable with a fine of $322,600 and/or two years imprisonment.

Storage or possession of illicit tobacco and nicotine vaping products is punishable with a fine of $161,300 and/or two years imprisonment.

South Australia

Supplying illicit tobacco is punishable with fines of $750,000 (first offence) or $1.1 million for subsequent offences.

New offences for the sale or possession for the purpose of sale of e-cigarettes or other prohibited products up to $750,000 for the first offence or $1.1 million for subsequent offences.

Tasmania

Supply of illicit cigarettes is punishable with a fine up to $10,100 on the first offence, and $40,400 on second and subsequent offences.

Sale or supply of a Schedule 4 vaping good without authorisation is punishable with a fine up to $4,040.

Victoria

Supplying illicit tobacco is punishable with fines of $47,421 per individual and $237,108 for a corporation.

Supplying nicotine vaping products is punishable with a fine of $1,975.

Western Australia

Selling tobacco products with non-compliant packaging is punishable with a fine up to $10,000 on the first offence, and $20,000 on second and subsequent offences for corporates.

Supplying a Schedule 4 vaping good without permission is punishable with a fine up to $45,000.