ATO cracks down on illegal tobacco as Victoria bust uncovers $35M operation

Authorities are calling on the community to help combat illegal tobacco farming after a major bust uncovered 16 tonnes of illicit crops linked to organised crime.

The Australian Taxation Office (ATO) is calling on the public to report any signs of illicit tobacco cultivation as the growing season for tobacco ramps up, following a major bust in Victoria that led to the seizure of over 16 tonnes of illicit tobacco.

According to the ATO, the illegal operations are often linked to organised crime syndicates, siphoning crucial funds away from local communities and funding further criminal activities.

The ATO asked the community to be alert for signs of illegal tobacco farming, including construction activities near creeks or rivers on private or public land, unexplained water usage, and vans without markings being loaded with boxes at unusual hours.

Increased security measures such as cameras and locks in otherwise ordinary locations, and machinery running overnight may also indicate suspicious activity.

The announcement comes after a major operation on March 6 when the ATO, Victoria Police, and the Australian Border Force seized and destroyed over 16 tonnes of illicit tobacco at a property in Merrigum, Victoria.

Authorities are calling on the community to help combat illegal tobacco farming after a major bust uncovered 16 tonnes of illicit crops linked to organised crime. Photo: Australian Taxation Office

The operation uncovered tobacco crops spanning more than 13 acres, equivalent to nearly 12 football fields.

The bust followed a tip-off from a community member, which led authorities to execute search warrants and uncover the massive illegal operation.

The illicit tobacco, valued at about $35 million, was linked to organised crime syndicates that control a significant portion of Australia’s illegal tobacco market.

ATO Assistant Commissioner Jade Hawkins praised those who first reported the property to the ATO.

“Community tip-offs are one of our best sources of information as they provide us and our partner agencies with crucial information to assist in the fight against illicit tobacco,” Mr Hawkins said.

Between July 2018 and June 2024, the ATO’s Illicit Tobacco Team carried out 90 operations, including government, ATO-specific, and state law enforcement efforts.

Tobacco plants can be difficult to identify, but the ATO advises looking for tall plants around 2.5 metres high with large green leaves resembling kale, cabbage, or corn, and long, trumpet-shaped pinkish-white flowers. Photo: Australian Taxation Office

These led to the seizure and destruction of 627 acres of illicit tobacco crops (weighing over 3.7 million kilograms), 39,224 kilograms of loose-leaf tobacco, and nearly 22 million cigarettes.

The estimated lost tax revenue from the seizures exceeds $723 million.

Since 2018, 30 people have been convicted for illicit tobacco offences, with sentences of up to three years in prison.

Tobacco plants can be difficult to identify, but the ATO advises looking for tall plants around 2.5 metres high with large green leaves resembling kale, cabbage, or corn, and long, trumpet-shaped pinkish-white flowers.

Residents are encouraged to report any suspicious activity related to illicit tobacco cultivation by visiting the ATO’s website or calling 1800 060 062.