TOUGHER PENALTIES FOR ILLICIT TOBACCO OFFENDERS
The Australian Government is making it harder for organised crime to profit from illicit tobacco, under proposed laws introduced to parliament today.
The Combatting Illicit Tobacco Bill 2026:
· creates new offences for large-scale illicit tobacco activity linked to organised crime.
· increases penalties across importing, possessing, buying, selling, producing and manufacturing
· expands unexplained wealth and proceeds of crime tools
· enables enhanced law enforcement powers, including wiretaps, for serious tobacco offences.
Substantially increasing monetary penalties and ensuring stronger imprisonment penalties will help deter serious and organised crime groups from engaging in the illicit tobacco market.
The increases to the existing maximum penalties are informed by the Illicit Tobacco and E-cigarette (ITEC) Commissioner’s Report 2024-25 (the Report), which recommended taking action to create stronger consequences.
In addition to the penalty increases, the Bill introduces new and expanded powers for law enforcement to more effectively go after the criminal profits generated from illicit tobacco.
These new measures target illicit profits by enhancing Australia’s proceeds of crime regime to deter, disrupt and prevent further growth of the illicit tobacco market.
Record seizures have occurred over the last financial year with an over 320% increase in the number of cigarettes seized compared to four years ago.
The powers and penalties in the Bill will ensure law enforcement agencies have the tools they need to not only seize illicit tobacco but prosecute the criminals behind the trade and choke off their profit stream.
Australia’s tobacco control measures have helped to reduce Australia’s smoking rates to one of the lowest in the world, but illicit tobacco poses a serious and growing threat to public health, community safety, and our economy.
There is no single solution to address the illicit tobacco market – it is driven by a complex mix of factors beyond price.
That’s why the Australian Government is committed to a comprehensive and integrated approach aimed at reducing both the supply and demand for illicit tobacco.
The Bill will amend the Customs Act 1901, Excise Act 1901, Proceeds of Crime Act 2002, Taxation Administration Act 1953, and the Telecommunications (Interception and Access) Act 1979.
Quotes attributable to Minister for Home Affairs, Tony Burke MP:
“Illicit tobacco and the criminals responsible for the illicit market represent an ongoing threat to Australia’s public health and community safety.
“That’s why the Australian Government is ensuring our agencies have the tools they need to crack down on organised crime.
“The illicit tobacco trade is not new, nor is it a problem isolated to Australia. Countries around the world are seeing tobacco smuggled across borders.
“There is no one cause or single solution to tackle the illicit tobacco market. We need a multi-pronged and multi-jurisdictional approach to tackle the issue, including ongoing and enhanced collaboration with the states and territories.
“The Australian Government will continue to crack down on organised crime syndicates who are profiting from harming the health and safety of our communities.”
Quotes attributable to Minister for Customs, The Hon Julian Hill MP:
“Illicit tobacco is not just a health or revenue problem – it is a significant organised crime issue.
“This trade fuels violence, fire bombings, intimidation, and risks the unwinding of decades of success in tobacco control policy and lowering smoking rates in Australia.
“These are not victimless crimes. They harm communities, honest retailers, workers and public safety.
“This Government’s focus is simple: shut down illegal shops, cut off the money, and make this trade unprofitable.”