Qld govt investigating ways to financially ruin smoke shops, disrupt organised crime amid booming black market

Up to 400 “priority” stores are in the sights of police, as the government investigates ways to financially ruin those caught selling vapes, in an effort to disrupt Queensland’s booming underground criminal market.

A man walks out of a north Brisbane tobacco store. Picture: Liam Kidston

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The state government is investigating ways to financially ruin shops caught selling vapes and illicit tobacco in an effort to disrupt the booming underground criminal market plaguing Queensland.

Health Minister Tim Nicholls revealed the government was looking at more extreme measures to interrupt supply chains because Queensland Health officers could only dish out $3226 on-the-spot fines to individual businesses and temporarily shut down shops for up to 72 hours.

A shop would only have to sell around 60-70 standard disposable vapes to recoup the $3226 loss from a fine.

Mr Nicholls said the Department of Health and Attorney-General Deb Frecklington’s Department of Justice would need to work together to enforce higher penalties.

“The aim is to take away the financial incentive and make it more expensive to carry out the business than the profits generated by doing it,” he said.

Legislation introduced in September was touted as the toughest in the nation, with fines ranging from $322,600 to $1.6m and two-year jail terms.

But hundreds of illegal vape and tobacco stores still operate in plain sight amid concerns the court-enforced penalties aren’t being used and more immediate, costly fines would be more effective.

Former Australian Border Force and federal police officer Rohan Pike, who established the now disbanded Tobacco Strike Team within the ABF in 2015, said heftier fines were the only way to stamp out illegal tobacco.

“Seizures for these criminals are just a cost of doing business, that has no deterrent value whatsoever,” he said. “The penalties have been raised but what really would be a deterrent is some of those massive fines actually being levelled and publicity being made around those prosecutions. Money is the only thing that really worries these criminals.”

Corporations that breach the law face higher on-the-spot fines of $16,130, with a court order required to enforce store closures for a maximum six months.

Mr Pike said the temporary shutdown of problem retailers was not working.

A man walks out of a north Brisbane tobacco store. Picture: Liam Kidston

“These people are still flouting that law, I mean you can go on a holiday to Hamilton Island for 72 hours and come back and just take up residence again … 72 hours to a non-licensed premises means absolutely nothing, they are just having a long weekend,” he said.

A team of 154 Queensland Health officers and five independent inspectors are investigating between 350 and 400 “priority stores” statewide.

But Mr Pike said the breadth of Queensland meant a team of more than 150 officers was actually “pretty thin on the ground” – and they could not be expected to have the tools to deal with organised crime.

“And there’s obviously just as many stores opening up as they are dealing with the one shut down,” Mr Pike said.

“Health doesn’t have the powers or the investigative know-how and investigative tools to deal with organised crime.

“They must appreciate that it is an organised crime problem and the only properly powered law enforcement agency like the police will have the tools to deal with that.”

Over the past six months alone, Queensland Health officers have seized more than 8.7 million illicit cigarettes, 2.6 tonnes of loose tobacco, 44,300 vaping goods and 21,000 nicotine pouches.

The importation of disposable single-use vapes was also banned by the federal government from January 1.

Mr Nicholls said the illegal sale of nicotine vapes and tobacco was one of the first problems he raised with former chief health officer Dr John Gerrard when he became Health Minister in October.

“It is potentially deadly to consumers and creates an environment for criminal groups to flourish,” he said.

“Even prior to my appointment as Health Minister, as the shadow Attorney-General, I was concerned about the prevalence of these illicit products, clearly indicating organised crime syndicates were smuggling vapes into Australia.”

He criticised the former Labor government for reacting slowly to the flourishing black market for vapes and illicit tobacco.

The government will also assess potential legislative changes regarding the mandatory storage of all seized vape and illicit tobacco products in the event it is needed for court purposes.

“Since the September 2024 legislative changes supported by the LNP, Queensland Health has worked with the Department of Justice on infringement penalty values and consideration of legislative changes allowing Queensland Health to quickly destroy seized vaping products,” he said.

Originally published as Qld govt investigating ways to financially ruin smoke shops, disrupt organised crime amid booming black market