Victoria’s searing tobacco war damage bill tops $70m as 100+ businesses, smoke shops torched

Tobacconists and businesses have copped tens of millions of dollars in damages amid the state’s disastrous illicit tobacco warfare — and the number of attacks is still on rise. See the stats.

The total damage bill from the state’s disastrous illicit tobacco warfare is estimated to have exceeded $70m.

More than 125 tobacconists and businesses linked to the underground smoke trade have been torched which has caused tens of millions of dollars in damage.

Dozens of neighbouring businesses and apartments have also been razed by fire or hit with smoke and water damage.

A tobacco shop on Cheviot Rd in Campbellfield lies in ruin after it was destroyed in an overnight attack in November. Picture: Andrew Henshaw

A tobacco store in Hadfield was destroyed in an alleged arson attack in May 2024. Picture: Valeriu Campan

A similar number of vehicles, many of which were stolen prior to the offending, have also been used to repeatedly ram a shopfront before it too is set alight.

Court documents reveal a fire at one northern suburbs tobacconist, which was torched late in 2023, caused more than $450,000 in damage.

And after 128 arson hits on businesses linked to the friction within the tobacco turf war, the total damage bill has been estimated to be more than $70m.

The true cost of the tobacco war is sure to be far greater as that figure does not account for a rise in insurance premiums, police resources, court and legal costs.

Criminologist Dr James Martin said the $70m figure would continue to rise even without further firebombings in the immediate future.

Police and fire crews at a tobacco store on Bonwick Street Fawkner that was gutted in September. Picture: Andrew Henshaw

He said costs associated with police resources, keeping offenders behind bars and impacts to neighbouring businesses were almost impossible to quantify.

That includes the 40-odd Lunar task force detectives who have so far made 105 arrests.

“It’s very clear there are serious and escalating costs associated with the tobacco wars,” he said.

“I would say that is conservative given all the other costs.”

Lunar task force Detective Inspector Graham Banks said landlords should evict business owners operating as tobacconists to prevent further harm.

“We need to see owners of premises that sell illicit tobacco and vapes to take responsibility for the risk these businesses present and cancel tenancy agreements to remove the risks to themselves, adjacent buildings and members of the public,” he said.

“It’s bad enough that we are talking about damage that is in the tens of millions of dollars, it is a miracle that we are not also taking about innocent members of the public being seriously injured or killed.”

A tobacconist is ruined in an alleged arson attack in the Yarra Valley Tobacco early last year. Picture David Crosling

Australian Association of Convenience Stores chief executive Theo Foukkare said the rising cost of legal smokes, which fuels the dangerous black market, were adding to the bill.

“The damage bill from these attacks so far is insane — but what’s crazier is that the federal government has an easy solution at its reach that would stamp out these wars — and it won’t use it,” he said.

“Victorians shouldn’t have to suffer at the hands of these criminals when the Albanese Government could so simply cripple the black market with the stroke of a pen.”

A gym linked to gangland figure Sam “The Punisher” Abdulrahim was damaged by fire in an arson attack that almost completely destroyed a bike shop sitting below last year.

Dozens of electric bicycles and the store’s interior were reduced to a smouldering rubble after arsonists torched the Lygon St shop in a bid to impact the gym above.

Damage to that shop and its products would be well into the tens of thousands of dollars.