Tobacco licensing and enforcement in Victoria

From 1 July 2025, tobacco retailers and wholesalers must apply for a licence to sell tobacco products in Victoria.

The scheme covers cigarettes, cigars and other tobacco products designed for human consumption. E-cigarettes and vapes are regulated by the Commonwealth government.

There will be tough new penalties for anyone operating without a licence or caught possessing or selling illicit tobacco. It will be an offence to sell tobacco without a licence, with a penalty of up to:

• $165,975 (840 penalty units) or five years jail for an individual
• $829,878 (4200 penalty units) for a body corporate.

An individual licensee may be fined up to $11,855 (60 penalty units) for breaching licence conditions. Body corporates may be fined up to $58,277 (300 penalty units).

Any person found to be selling illicit tobacco will face fines of up to $355,000 or up to 15 years jail, while businesses will face fines of more than $1.7 million

Why the tobacco business licensing scheme is needed

The tobacco business licensing scheme will:

• help to address the health risks associated with tobacco
• deter unsuitable people from selling tobacco and running tobacco businesses
• support Victoria Police and other law enforcement groups to fight serious organised crime and disrupt the supply of illegal tobacco.

It will introduce some of the harshest punishments in the country. This scheme will help protect legitimate businesses from being undercut by criminal groups and will prevent people with criminal connections from being involved in Victoria's tobacco trade.