From 9 September 2026, new provisions under the Tobacco Act 1987 (Vic) (Tobacco Act) give Tobacco Licensing Victoria and the Victoria Police significant powers to close premises involved in the sale, supply or possession of illicit tobacco, including where tobacco is sold without a licence. The types of premises may include convenience stores, petrol stations, supermarkets and bottle shops, not just tobacconists. Significant penalties also apply including substantial fines.
A number of premises have already been closed for periods of up to 90 days. The current list of closed premises can be viewed here: https://www.vic.gov.au/tobacco-shop-closures-list.
Long term closures can also apply which are subject to orders of the Magistrates Court.
Landlords who knowingly allow premises to be used to keep, sell or otherwise supply illicit tobacco can face fines of up to $125,460 for individuals and $627,300 for body corporates (companies).
Given the extent of the issue, the Victorian Government has provided information about the rights and responsibilities of landlords, which can be found here: https://www.vic.gov.au/tobacco-closure-landlords.
Please be aware that if premises you manage are subject to a closure notice or order, you must not enter the premises during the closure period unless you have an exemption or other lawful authority to do so. A short-term closure order is also not in itself a basis under the Tobacco Act upon which a landlord can terminate the lease. Other rights may, however, be available under the lease or Victorian law,, including in circumstances involving non-payment of rent and outgoings or unlawful use of the premises. Legal advice should be sought before taking steps to terminate a lease. A specific termination right applies under the Tobacco Act where the Magistrates’ Court has made a long-term closure order.
To minimise the risk of penalties or closure orders affecting properties you manage, it is advisable to consider the following steps:
Identify tenants in your portfolio who may be selling tobacco or tobacco products.
Check that tenants hold a current tobacco licence and display a copy of their licence. The public register can be searched here: https://www.vic.gov.au/tobacco-register
Inspect the property where appropriate. Illicit tobacco may be concealed so it may not be obvious that illegal sales are occurring.
Contact the tenant and request confirmation in writing that the tenant is complying with applicable tobacco licensing and illicit tobacco laws.
Be aware that sales may occur not only from the premises itself but also from a vehicle or adjoining carpark. The regulations cover this possibility.
Details of the changes to the Tobacco Act can be found here: https://www.legislation.vic.gov.au/in-force/acts/tobacco-act-1987/104