Proposed laws would give the power to shut down shops suspected of selling illicit tobacco products in South Australia as Operation Eclipse continues

Mooted laws that would give the Consumer Affairs Minister the power to close shops suspected of selling illicit tobacco are expected to be passed in state parliament this week.

Proposed laws that would give the Consumer and Business Affairs Minister the power to shut down shops suspected of selling illicit tobacco products signify a “significant step forward” in the fight against South Australia’s lucrative underground market, the Illicit Tobacco and E-cigarette Commissioner says.

Meanwhile, a peak national retail body says the mooted legislation would make a “significant dent” in the state’s growing illegal tobacco and vape trade.

The state government hopes its proposed legislation – which would give the Consumer Affairs Minister the authority to shut down shops suspected of selling illicit tobacco products for 72 hours, and up to six months with the approval of a magistrate – will be passed in state parliament this week, possibly on Tuesday.

Business who violate closure orders face fines of up to $1.1 million while individuals can be hit with expiation notices of up to $700,000.

The legislation has already been signed off by the lower house and will go to the upper house on Tuesday for consideration.

Illicit Tobacco and E-cigarette Commissioner Erin Dale welcomed the proposed laws, describing the move to introduce shutdown laws as a “strong stance” against the illegal tobacco trade.

“Legislation that empowers authorities to shut down non-compliant businesses is a significant step forward,” she said.

“This kind of decisive action will help reduce the availability of illegal products and make enforcement more effective.”

Ms Dale said the mooted amendments would “send a clear message – trading in illicit tobacco and e-cigarettes is a serious offence and won’t be tolerated”.

Ms Dale also stressed the need for “end-to-end solutions” to deter the underground tobacco market.

“This includes comprehensive licensing, compliance and enforcement regimes, strong penalties and the ability to prosecute offenders for breaches of state and Commonwealth laws,” she said.

Illicit tobacco seized by authorities earlier this month. Picture: Supplied

Australian Association of Convenience Stores chief executive Theo Foukkare said the proposed legislation would make a “significant dent” in the illegal tobacco market in SA.

“What we’ve seen happening is a store gets raided and they get fined and stock is confiscated and we’ve seen some stores reopen within a couple of hours,” he said.

“So taking them out of operation for a period of time is a strong move.”

Mr Foukkare described the proposed legislation as the “gold standard” and urged other states across the country, in particular NSW and Victoria, to implement similar laws.

“We just need to see it followed through with prosecutions and store closures,” he said.

He further said that the legislation also needed to include considerations for landlords as well, such as whether they can break the lease with the tenant if their store is closed down for a significant amount of time.

It is understood many lease agreements already have some protections such as allowing landlords to terminate agreements if illegal activity is taking place in the premises.

SA Police Detective Chief Inspector Brett Featherby said the government had consulted with SAPOL about the legislation and the force had “provided an appropriate response for consideration”.

“I won’t comment on that any further,” he said.

SA Police created Operation Eclipse in September in a bid to combat illegal activity associated with SA’s underground tobacco trade.

Since the operation was established, police have raided 10 houses and eight businesses, and arrested 13 people in connection with the illegal tobacco market.

Police believe 19 arson attacks over recent months are connected to the ongoing underground tobacco war, involving three rival organised crime syndicates, across Adelaide.

Originally published as Proposed laws would give the power to shut down shops suspected of selling illicit tobacco products in South Australia as Operation Eclipse continues