Victorian tobacco shop owners will need to pass a “fit and proper persons” test and a dedicated regulator will enforce new rules – with jail time and fines of up to $1.7m for those who breach them – under a long-awaited licensing scheme described by the state premier as the “toughest” in the country.
In a bid to crack down on the illicit trade and stem a turf war that has seen more than 100 businesses firebombed, the government will introduce legislation to establish the licensing scheme in parliament on Tuesday.
“We are introducing into parliament today the toughest laws anywhere in the nation to crack down on the illegal tobacco trade and to support a regime in this state that is focused on keeping Victorians safe,” the premier, Jacinta Allan, told reporters.
“This new, strict licensing regime includes more boots on the ground, more resources [and] more powers – particularly powers to Victoria police – to crack down on the illicit tobacco trade.
“There will be massive consequences, massive penalties for people who breach this regime … the toughest penalties in the nation.”
Victoria has been the only state or territory without any kind of registration or licensing scheme in place, which has hampered police in their efforts to crack down on the spate of arson attacks and firebombing of tobacco stores in the state.
But under the new Tobacco Amendment (Tobacco Retailer and Wholesaler Licensing Scheme) Bill, people will only be able to sell tobacco with a licence, the cost of which will vary on the size of their business.
A licence will only available for “fit and proper persons” who pass a strict test, and people can be refused a licence based on criminal history and known associates.
A new tobacco regulator will also be set up, with dedicated inspectors to enforce the scheme, which was a key request of Victoria police.
The regulator will be given the power to search shops, suspend licences, seize illegal items and issue penalties, and can also pass on intelligence to police to place further charges.
The police minister, Anthony Carbines, said traders will “have to jump through hoops” to get a licence.
“Understand that if you want to sell these products in the future, you have to be a fit and proper person,” he said. “We’ll have details and intelligence to be able to provide to the regulator and whether people are allowed to have these businesses and run these businesses.
“Our goal is to make sure that we run organised crime out of this state, and we run organised crime out of these businesses, and we continue to disrupt and dismantle their business model across a range of areas here in Victoria.”
Under the bill, Victoria police’s search powers will also be strengthened to make it easier and quicker to raid, search and seize illicit products from a retailer suspected of having links to organised crime.
People found to be selling illicit tobacco will face fines of more than $355,000 or up to 15 years in jail, while businesses will face fines of more than $1.7m.
The opposition said it supported the scheme but questioned why it had taken so long to introduce, given a report in 2021 recomended it it.
“More tobacco shops are going to burn week in, week out, and we need to get this up and going as soon as we possibly can,” said the Coalition’s spokesperson for consumer affairs, Tim McCurdy.
The police commissioner, Shane Patton, said it would eventually deter black market operators, but not overnight.
“Whilst it by itself won’t stop what we have in terms of the conflict at the moment ... this will add to our ability to really make a difference,” he told ABC Radio Melbourne.
However, Libertarian MP David Limbrick, doubted it would make a dent.
“It’ll increase the violence – we saw the same thing in the prohibition era in the United States when they increased enforcement,” he said.
Since October last year, when police established a specialised taskforce to combat the attacks, there have been at least 100 firebombings and 82 arrests. More than 200 search warrants have been executed at tobacco stores suspected of selling illicit tobacco and vapes.
In August, a government-led inquiry also recommended the introduction of a licensing scheme, which could charge “high annual fees” to cover the cost of administrating it.
The government said it hoped the bill would pass parliament by the end of the year, with the regulator to be established by the middle of 2025.
