Compliance checks
Tobacco Licensing Victoria will inspect retail businesses across Melbourne and regional Victoria to:
- check compliance with tobacco laws and licence conditions
- advise on issues that need to be fixed to meet compliance
- issue fines and notices.
Inspectors will ensure ongoing compliance and take enforcement action when required.
Tobacco licence inspector powers
Inspectors can:
- enter premises to check compliance with the law
- require names and addresses
- obtain and execute search warrants
- seize prohibited products or items that may be used as evidence
- issue penalties.
Licensing inspectors will identify themselves to you and advise you of the reasons for their visit. You can verify a licensing inspector's identity and authorisation by asking to see their official identification card, which includes their name and an inspector number.
We expect licensees and staff to cooperate with inspectors and treat them with respect. It is an offence to obstruct, hinder, threaten, abuse or intimidate an inspector during an inspection.
Ensure your premises is inspection-ready
To prepare for an inspection, make sure your licensed premises has:
- your tobacco licence displayed correctly
- a staff member or licence holder available
- relevant records to prove that you are complying with your licence conditions.
After an inspection
After an inspection, the inspector will discuss:
- what they found
- any issues that need attention to achieve compliance
- any other information they need the licensee to produce.
If an item is seized, it will be recorded and kept securely. Whenever possible, it will be returned as soon as possible. Some items may need to be kept as evidence in case there is a prosecution.
Enforcement actions
Tobacco Licensing Victoria can take enforcement actions to ensure compliance with the Tobacco Act 1987.
Enforcement taken will depend on the seriousness of the offence, the culpability of the offender and other related factors.
The enforcement actions are:
Education
For lower-range breaches inspectors may decide to educate the business rather than pursue further action. Inspectors can provide advice and guidance to help you understand how to achieve compliance. We may return to check that the business is now complying with the law.
Improvement notice
An improvement notice is a formal document sent to a licensee when they have broken a law or regulation or are about to break one. It tells the owner exactly what they need to fix. This is a chance for the business to solve the problem before enforcement action is escalated.
Infringement notice
An infringement notice is a fine for an offence. These may be used to ensure punishment is proportional to the offence, and if the offence is minor, to achieve quick resolution. Fines are sent by post and must be paid within 28 days.
Show cause notice
This is a formal warning to a licensee that we are planning to suspend, cancel or vary their licence. The licensee can "show cause" — which means giving reasons or evidence why we should not take that action. We can also suggest disqualifying them from holding a licence for up to five years.
Immediate licence suspension
We can suspend a licence with immediate effect for up to 90 days if we reasonably believe that the licensee:
- has committed an illicit tobacco offence, and
- may continue to possess or supply illicit tobacco in or from the licenced tobacco premises.
Prosecution
We may commence proceedings in court if we determine a licensee's alleged offending warrants this action.
Penalties
Victoria has some of the strongest penalties for illicit tobacco offences in Australia, including fines and imprisonment. Find below a list of offences and fines for 2025-2026:
| Offence | Penalties for individuals | Penalties for businesses and incorporated associations |
| Possessing Illicit tobacco by tobacco supply businesses | Up to $170,948.40 or up to 5 years jail | More than $854,742 |
| Selling Illicit tobacco | Up to $366,318 or up to 15 years jail | More than $1.8 million |
| Selling tobacco without a licence | Up to $170,948.40 or 5 years jail | $854,742 |
| Failing to comply with licence conditions or obligations | Up to $12,210.60 | $61,053 |
| Providing false or misleading information | Up to $12,210.60 | $61,053 |
| Failing to display a copy of the licence | Up to $1,017.55 | $5,087.75 |
Roles of other Victorian government agencies
Victoria Police
Victoria Police continues to be responsible for detecting and investigating criminal activity – especially serious and organised crime – associated with the sale of tobacco and illicit tobacco.
Victoria Police has enforcement powers, including search warrants and seizure powers, to help detect serious criminal activity.
They also contribute to licensing decisions by providing information about the suitability of tobacco licence applicants.
Department of Health
The Department of Health continues to:
- develop tobacco policy
- provide health messages to prevent broader tobacco and smoking harms
- enforce smoke-free areas.
For more information about tobacco reforms in Victoria, visit the Department of Health website.
Local councils
Local councils do not have a role in enforcing the tobacco licensing scheme or monitoring compliance.
They provide education and monitor compliance with the general retail, and smoke and e-cigarette-free requirements of the law.
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