By Kieran Rooney, Broede Carmody and Chris Vedelago
Victoria’s new tobacco licensing laws must have strict character tests, a dedicated taskforce and massive fines to avoid being a toothless tiger at stopping the state’s underground turf war, the industry has warned.
Premier Jacinta Allan on Thursday revealed the state would adopt the recommendation of a report by Better Regulation Victoria that tobacconists must have a licence to operate, bringing it in line with the rest of Australia, as her government attempts to stop the violent illegal tobacco trade.
That confidential document, completed in 2022 and never publicly released, was obtained and published in full by The Age in October. In it, the then commissioner for better regulation, Anna Cronin, recommended sweeping changes to tackle organised crime and reduce the consumption of illegal tobacco and nicotine vapes.
The illicit tobacco industry is estimated to be worth tens of millions of dollars and has been linked to about 60 arson attacks across the state over the past year.
As the turf war escalates, police believe one notorious Melbourne crime family based in the city’s north is earning millions each week in profit from the black market.
The new regulations will be brought before the Victorian parliament in the second half of this year.
“The key reason why we are pursuing this pathway is [that] smoking is harmful, and it can kill people and so that is why we’ve been taking that health-focused approach,” Allan said on Thursday.
But the premier said “other issues” had emerged in recent months that had influenced their decision, referring to the problem of organised crime and “terrible” incidents on main streets.
“I want to thank the work that Victoria Police have done. They’ve established a taskforce, put considerable resources to the work of cracking down on the organised crime elements that is driving a lot of that,” Allan said.
“In considering the response to the better regulation commissioner’s report has been that view from Victoria Police that we need to strengthen the licensing arrangements in this space.”
Allan said there would not be a cap on the total number of tobacco licences, but stores would have to meet strict conditions, and it was too soon to say who would enforce the new rules.
“The commissioner’s report recommends that it be a state-based agency that undertakes the enforcement and there are already a number of different agencies who have different enforcement responsibilities across different sectors in our community,” she said.
“I’m signalling today that that is something that we are further considering, and also getting some advice.”
Australian Association of Convenience Stores chief executive Theo Foukkare said money from the licences should fund a specialist taskforce armed with the powers to end illegal trade.
“The black market will be difficult to completely dismantle, however, having the right licensing framework backed by strong enforcement by the correct bodies will go a long way to addressing the problem which will ultimately drive consumers back into legitimate retailers of tobacco products,” he said.
”It’s important that we sit down with the Victorian government now to talk through the details, and we are very keen to be part of the working group that will help shape this important law.“
The association wants tobacconists to pass a fit and proper person test, similar to liquor licences, along with criminal background checks. They have also called for massive fines for those who break the new laws, particularly when selling to minors, and removing red tape for authorised officers.
“Enforcement will be a key feature of this because we need to make sure authorities are coming down hard on anyone caught selling tobacco illegally, (and they) will be shut down and feel the full force of the law,” Foukkare said.
In Victoria, the enforcement of tobacco laws has been left primarily to local councils, who say they are not well-equipped to investigate businesses with potential links to organised crime.
Local police had expressed support for increased regulation and a Victoria Police spokeswoman on Thursday welcomed the proposed licensing scheme.
Former Victorian upper house MP Tania Maxwell, whose advocacy contributed to the commissioning of the report, welcomed the decision and said councils should no longer be in charge of enforcement.
“One of the ultimate goals of the review was to allow Victoria Police to take more control over this,” she said.
“However, we all know that Victoria Police is under pressure … I’m not sure where they’re drawing the numbers from for this specific task force.
“This is a very small step in what is an enormous issue.”
Illicit tobacco entering the country is the responsibility of Australian Border Force. However, Victoria Police was forced to step in following a spate of firebombings in tobacco stores across Melbourne and Victoria.
The Lunar taskforce was publicly launched in October last year. Since then, dozens of suspected members of rival organised crime syndicates have been arrested and charged.
The turf battle has been linked to more than 60 arson attacks, two murders and several shootings.
State and federal law enforcement sources, who cannot be identified talking about government policy, said it could take at least until the end of 2025 before any licensing system could block the proliferation of tobacco retailers and bring the illicit market under real control.
Quit director Rachael Andersen, whose organisation runs a counselling service for people giving up nicotine, said as many as eight in 10 Victorian adults wanted tobacco retailers to be licensed.
Opposition consumer affairs spokesman Tim McCurdy said it had taken too long for the government to act.
“After months of inaction and denial, Premier Allan has finally caved to mounting pressure,” he said.
With Marta Pascual Juanola
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