Illicit tobacco stores in South Australia pocketing up to $1.3 million a month as tougher new laws set to be imposed

The massive revenues generated by illicit tobacco stores have been exposed, as tougher new laws to combat the underground trade are set to be considered by state parliament next week.

Illegal tobacco shops in South Australia are raking in up to $1.3 million a month selling illicit cigarettes and vapes, while organised crime syndicates who supply the stores are believed to be pocketing several million dollars every four weeks, insiders have revealed.

The huge revenues, which have been fuelling the underground tobacco war that has raged in South Australia since mid-last year, have been disclosed as a new push for harsher penalties is set to be considered in state parliament next week.

Independent MLC Frank Pangallo. Picture NCA NewsWire / Emma Brasier

It comes amid concerns crime syndicates are unfazed by increasing efforts to stop their underground trading and they’re making police and consumer affairs officers “look impotent”.

Insiders have confirmed some illegal tobacco stores are averaging an income of between $900,000 and $1.3 million a month hawking illicit products.

It is understood one of the most profitable stores is located in Adelaide’s north.

Meanwhile, independent MLC Frank Pangallo is preparing to introduce into parliament on Tuesday amendments to the government’s new illegal tobacco legislation to give authorities the power to temporarily close suspected illicit tobacco shops for 60 days. The amendments will also include a clause that allows for closure orders with unlimited time frames to be issued to those who reoffend.

The government’s original mooted laws, announced earlier this week, would increase fines up to $6.6 million for supply and possession of commercial quantities of illicit tobacco and vapes, create new offences and give police greater enforcement powers.

They follow illegal tobacco laws that came into effect late last year that provided the Consumer and Business Services Minister with the authority to order suspected illegal tobacco shops to close for 72 hours.

The minister can also apply to a magistrate to order a six-month closure.

So far, 21 stores have been shutdown for 72 hours, these include five in Adelaide, three in Salisbury North and two in Semaphore.

Thingy Gifts, on Bagster Rd, Salisbury North, earlier this month became the first store shut down for six months. It is understood several other stores are being considered six-month closures.

However, Mr Pangallo said the laws do not go far enough.

He said store syndicates were “thumbing their noses at the law and making police and consumer affairs officers look impotent” by continuing to sell unlawful products just hours after being raided and shut down.

Mr Pangallo said he named in parliament four city stores that were

“blatantly” selling illegal tobacco and vaping products but they continued to trade.

Jack Batty said there was no excuse for illegal tobacco shops not being shut down. Picture: Russell Millard Photography

He said a store in the city was shut down on March 13 but it was back selling illegal products the day after the closure period ended.

“Even though they were alerted, do you think enforcement officers returned? No,” he said.

“What’s the point of encouraging the public to contact Crimestoppers to report these illegal sales, when nothing is done?”

Opposition police spokesperson Jack Batty said there was no excuse for illegal tobacco shops not being shut down.

“The Minister knows there are over 200 illegal tobacco shops operating in South Australia, so why has she only applied to have just one shut down for the long term?” he said.

“The Minister can shut down these shops today. What is she waiting for?”

Consumer and Business Affairs Minister Andrea Michaels said the government was in discussions with Mr Pangallo about his amendments. Picture: Keryn Stevens.

Consumer and Business Services Minister Andrea Michaels said the government was in discussions with Mr Pangallo about his amendments.

“In South Australia, we have taken an extremely tough approach to the illicit tobacco and vape trade and we continue to be open to further measures to crack down,” she said.

“We know that there are a significant number of illicit tobacco stores operating across South Australia and Consumer and Business Services takes an intelligence-based approach to determining which stores it targets and when.”

Consumer Affairs Commissioner Brett Humphrey said short-term closures helped to disrupt the sale of illegal tobacco products, sent a clear message that authorities were “out on the beat” and provided investigators with opportunities to gather valuable intelligence.

Originally published as Illicit tobacco stores in South Australia pocketing up to $1.3 million a month as tougher new laws set to be imposed