Tobacco licensing laws smoulder as parties fire up

Scores of Victorian tobacco shops have been torched in a black market crime battle. (James Ross/AAP PHOTOS)

Pressure is piling on the Victorian government to get on with establishing a tobacco licensing scheme in a bid to snuff out the state's unending tobacco turf war.

On Tuesday, the Victorian coalition moved to introduce a private member's bill to state parliament to create their own scheme amid rampant fire bombings of tobacconists.

Victoria Opposition Leader John Pesutto announces a bill to establish a tobacco licensing scheme

More than 100 arsons have been linked to Middle Eastern organised crime syndicates and outlaw motorcycle gangs fighting for control of the lucrative tobacco and vape black market.

The Labor state government blocked the bill's introduction, describing it as a "petty stunt".

It would have given police search and seizure powers for tobacco products, created a fine of up to $1 million for first-time offenders and maximum penalty of two years in jail for subsequent offenders.

Opposition Leader John Pesutto said it was only a matter time before tobacco-linked firebombings turned deadly.

"In the face of firebombing after firebombing ... Premier Jacinta Allan drags her feet," he said.

Victorian Opposition Leader John Pesutto (file image)
Opposition Leader John Pesutto says the government is moving too slowly on tobacco laws.

Victoria became the last Australian state or territory without a tobacco licensing scheme in September, when Queensland's regime started.

The coalition modelled its proposed regime on that scheme, opposition consumer affairs spokesman Tim McCurdy said.

"Queensland has fines up to $1.6 million, South Australia $1.1 million and NSW a little lower," he said.

The Minns Labor government has introduced a bill to NSW parliament to double the maximum penalties for illicit tobacco sales to $220,000 for corporations and $44,000 for individuals.

In March, Premier Jacinta Allan committed to setting up a licensing scheme for retailers and wholesale tobacco suppliers after a Better Regulation Victoria review recommended one in May 2022.

She confirmed the legislation remained on track to be introduced to parliament before the end of 2024 and denied there wasn't a sense of urgency.

"The work that needs to go into bringing a tobacco licensing scheme to the parliament requires a great amount of detail to get the scheme right," Ms Allan said.

A packet of tobacco cigarettes (file image(
Price differences between legal and illicit cigarettes are reportedly fuelling the black market.

Casino, Gaming and Liquor Regulation Minister Melissa Horne wouldn't rule out the government considering fines of up to $1 million.

Victoria Police's illicit tobacco task force has conducted 200 raids, made 80 arrests and seized more than $37 million worth of illicit tobacco, vapes and cash over the past 12 months.

"We know organised crime has infiltrated the illegal tobacco market," Police Minister Anthony Carbines said.

"The licensing scheme will go a long way to make sure police have the power through fit and proper people tests to make sure that (they) are licensed appropriately."

Authorised officers would be involved in enforcement and monitoring to free up police to focus on organised crime elements, Mr Carbines said.

A tobacco shop fire in Melbourne (file image)
Tobacco shop arsons are the result of a turf war between crime gangs, police say.

In May 2023, Federal Health Minister Mark Butler announced the tax on tobacco would increase five per cent each year for three years from September 1, 2023.

The last increase in September 2024 saw the price per cigarette increase to $1.36 from $1.27.

A state parliamentary inquiry found the price differential between legal and illicit cigarettes had fuelled the black market.

Libertarian MP David Limbrick said neither the government nor opposition's proposed regimes would solve the problem, calling for the federal tobacco excise to be cut to curtail black market sales.

Three Victorian parliamentary sitting weeks are left in 2024.

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