In November 2024 the Victorian Parliament passed a bill amending the Tobacco Act 1987 (Vic) (Act). The Tobacco Amendment (Tobacco Retailer and Wholesaler Licensing Scheme) Bill 2024 (Bill) establishes a tobacco business licensing scheme for both retailers and wholesalers (Scheme).
The Bill introduces a new Part 3AA into the Act, which requires retailers and wholesalers of tobacco products to hold a licence in order to sell these products. The Scheme appears to be set up in a similar way to the liquor licensing scheme and a separate licence will be required for each premises where the retailer or wholesaler is intending to sell tobacco. The Scheme explicitly covers cigarettes, cigars and other tobacco products designed for human consumption.1 However, e-cigarettes and vapes are not captured in the licensing requirements of the Scheme, given the Commonwealth regulates these products.
The implementation of the Scheme will be completed in stages:
- Public consultation will take place in March – April 2025 on the Scheme, including on licence categories, conditions and fees.
- Tobacco retailers and wholesalers will be able to apply for and be granted a licence from 1 July 2025.
- Enforcement, compliance and offences for selling without a licence will commence no later than 1 July 2026.
A first for Victoria
Previously, no licence was required in Victoria for the retailing or wholesaling of tobacco products so this reform represents significant change for Victoria’s tobacco industry. Every other state and territory in Australia had either already introduced a tobacco licensing scheme or has one proposed in legislation still before parliament. So, the Scheme will have the effect of bringing Victoria into alignment with the rest of Australia.
The Victorian Government has stated that this change to Victoria’s legislative landscape was brought about to “help protect legitimate business from getting undercut from criminal syndicates and ban those who have criminal affiliations from having anything to do with this trade“.2
The new Tobacco Licensing Scheme
Once the Scheme comes into effect, any person over the age of 18 (either for themselves or on behalf of a partnership) as well as body corporates will be allowed to apply for a licence. To apply, the following information must be provided:
- names and addresses of the applicant (and associates);
- the proposed premises for their business;
- any information prescribed in the regulations (which is to be determined); and
- a prescribed fee (which is to be determined).
The Department of Justice and Community Safety (Regulator) is the regulator of the Scheme and will be in charge of determining whether an applicant is suitable to hold a licence. This test will hinge on whether the Regulator deems the applicant to be a ‘fit and proper’ person. An applicant may be refused a licence based on the applicant’s history (including any criminal history) and their known associates.
To answer the question of suitability, the Regulator has the power to draw upon Victoria Police resources and information, including to assist in running criminal history checks.
The tobacco licenses will run with the financial year and must be renewed at the end of June each year. This renewal process will include the payment each year of a (yet to be prescribed) fee. Licence holders will need to display their licence in their venue, and the Regulator will maintain a public register of licences that will be accessible on the Regulator’s website.
Enforcement of the scheme
The Scheme will be enforced by newly created “licensing inspectors”, who will:
- promote, monitor and enforce compliance by tobacco supply businesses with the Act and the regulations;
- have all the powers necessary to perform the licensing inspector’s functions; and
- will be able to bring proceedings (on approval of the Regulator) for offences against the Act.3
Equally, Victoria Police will see an increase in their powers to aid the Regulator in enforcing the Scheme.
Offences and penalties
Offences will be part of the Scheme, each of which carries a fine as set out below. Only the offence of selling tobacco without a licence has been classed as an indictable offence, which is why it attracts significantly higher penalties.
| New Section of the Act | Offence | Penalty4 |
| New Section 33A | Selling tobacco without a licence | For an individual: 840 penalty units (approximately $166,000) or 5 years imprisonment; or For a body corporate: 4200 penalty units (approximately $830,000) |
| New section 33B | Selling tobacco except in accordance with licence | For an individual: 60 penalty units (approximately $12,000); or For a body corporate: 300 penalty units (approximately $59,000) |
| New section 33C | Failing to display a licence | For an individual: 5 penalty units (approximately $1,000); or For a body corporate: 25 penalty units (approximately $5,000) |
| New section 33D | False or misleading statements in connection with licensing | For an individual: 60 penalty units (approximately $12,000); or For a body corporate: 300 penalty units (approximately $59,000) |
| New section 33E | Holding out that unlicensed tobacco premises are licensed | For an individual: 15 penalty units (approximately $3,000); or For a body corporate: 75 penalty units (approximately $15,000) |
| New section 33F | Holding out that unlicensed person is licensed | For an individual: 15 penalty units (approximately $3,000); or For a body corporate: 75 penalty units (approximately $15,000) |
Consultation period
While the legislation has passed Parliament, the regulations are yet to be finalised. As mentioned above, policymakers are running public consultation between March 2025 and April 2025 on matters to be contained in the regulations, including licence categories, licence conditions and associated fees.
How can we help
Our dedicated liquor and tobacco regulatory team is ready to answer any questions you may have around the new scheme and assist you to apply for a tobacco licence when the time comes. Please reach out to the authors if you would like to know more.
This article was written by Justin Pasa, Partner, Erin Upson, Solicitor, and Kaitlyn Firnigl, Law Graduate.
1 Tobacco Act 1987 (Vic) s 3.
2 Victorian State Government, Premier of Victoria. (2024, November 12). U.S. Food and Drug Administration. (2019, November 15). Tough New Laws To Smoke Out Tobacco Crime Lords [Press release]. https://www.premier.vic.gov.au/tough-new-laws-smoke-out-tobacco-crime-lords
3 Tobacco Act 1987 (Vic) new section 35F.
4 Note that, as at 1 July 2024, a penalty unit is worth $197.59.
