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Tobacco syndicates selling only after hours to evade Victoria's new shutdown powers

48 stores hit with closure orders in first fortnight of crackdown, but criminals adapt by restricting sales to inspector-free hours

By LineZotpaper
Published
Read Time2 min
Sources2 outlets
Black-market tobacco shops in Victoria are circumventing the state's new shutdown powers by selling illicit cigarettes only outside business hours, when licensing inspectors are not rostered on, as the government's long-delayed crackdown begins to disrupt the country's largest illegal tobacco market.

Victoria's illicit tobacco market, long regarded as the most lucrative and violent in Australia, is facing its first significant shake-up after the state government introduced shutdown powers that came into effect on September 9. The new laws allow licensing authorities to close operators for up to 90 days.

Tobacco Licensing Victoria has issued closure orders to 48 stores in the past fortnight following raids across the CBD, inner suburbs and the city's west. Nearly a quarter of those targeted were in and around Chapel Street, which has become notorious for its concentration of illicit tobacco outlets and has been a major focal point for the firebombings that have defined the more than three-year-old "tobacco war". More than a dozen stores were shuttered in the CBD, mainly along Swanston and Elizabeth streets.

Crime syndicates controlling the shops have scrambled to adapt, with some now selling only on weekends or outside Monday-to-Friday business hours when inspectors are absent. The cat-and-mouse dynamic underscores the challenge regulators face in dismantling a black market that has fuelled arson attacks and violent turf disputes.

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Analysis

Why This Matters

  • The crackdown signals a new phase in Victoria's effort to control a black market that has fuelled hundreds of firebombings over three years.
  • Adaptations by syndicates suggest enforcement gaps may persist, potentially undermining the deterrent effect of closure orders.
  • The outcome will test whether regulatory powers alone can disrupt organised crime networks deeply embedded in the illicit tobacco trade.

Background

Victoria's illicit tobacco market has been the epicentre of a violent turf war involving rival crime groups. Successive governments have struggled to contain the trade, which has been linked to arson attacks on shops, homes and vehicles. The new shutdown powers, which took effect in September 2026, give Tobacco Licensing Victoria the authority to close operations for up to 90 days without lengthy court processes. The crackdown follows years of calls for stronger enforcement tools.

Key Perspectives

Law enforcement and regulators: The shutdown powers are a critical new tool to disrupt the illicit trade. The rapid issuance of 48 closure orders shows authorities are acting aggressively, and the powers are designed to impose immediate financial costs on operators. Crime syndicates: The shift to selling only outside inspector hours suggests organised criminal groups are seeking to preserve their revenue streams while minimising risk. This cat-and-mouse response indicates the black market is resilient and adaptive. Critics and community: Some may question whether the powers go far enough if shops can simply reopen outside inspection hours. Residents in hotspots like Chapel Street may feel the crackdown does not address the underlying violence and intimidation that has plagued their neighbourhoods.

What to Watch

  • Whether the pattern of after-hours trading spreads across the state or is limited to initial hotspots.
  • Any escalation in firebombings or violence if syndicates feel their operations are under serious threat.
  • Potential legislative amendments to extend inspector rostering or introduce covert surveillance powers.

Sources

Zotpaper

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