State government ignoring warnings on booming illicit tobacco industry

The state government has been ignoring warnings to overhaul tobacco regulation for more than 12 months as firebombings continue across the suburbs.

The Victorian government has ignored warnings to overhaul the state’s tobacco regulation for more than a year, leaving them clamouring to wrangle a surge in arson attacks related to the illicit tobacco industry.

Organised crime groups have firebombed almost 30 tobacco shops since March, prompting police to set up a dedicated illicit tobacco unit, the Lunar Taskforce, amid concerns the suspected turf war could see innocent bystanders killed or injured.

But the state government, which commissioned a report into Victoria’s booming illicit tobacco trade two years ago, appears to have shoved advice on how to tackle the issue under the carpet.

The leaked report – which was handed to the government in May 2022 – recommends that laws be amended to “provide for a significantly stronger penalty regime for unlicensed sale of tobacco products” and that a “full suite of investigative powers” be provided to Victoria Police.

A tobacco store in Hadfield was torched a second time this week. Picture: David Crosling

A bottle of kerosene was seen at the shop. Picture: David Crosling

Further recommendations included establishing a new licencing scheme, with a regulator that has the ability to “immediately suspend licences where licensees are found to be selling illicit tobacco”.

A review by former Commissioner for Better Regulation Anna Cronin last year also recommended major changes to tobacco regulation to tackle organised crime.

The state government is yet to put forward a plan to tackle the surge in violent attacks.

A government spokesman said it was looking at how to tighten legislation and would “develop a robust response early next year”.

“We’re working closely with Victoria Police, local governments and other stakeholders on a range of options to address these issues,” they said.

“Recent developments including an increase in organised crime links to illegal tobacco, a rise in the sale of unlawful vapes and consideration of the Commonwealth’s new tobacco legislation means we need to do further work to tighten our approach to the sale of tobacco.”

The multimillion-dollar black market is suspected by police to be controlled by established players involved in Middle-Eastern organised crime who are trying to protect their market share.

The Herald Sun recently revealed there were now 1000 shops involved in the illicit tobacco trade, up from about 50 five years ago.

Victoria is now the only jurisdiction in Australia that does not require a licence to open a tobacco shop.