Crime boss ‘might as well be health minister’, with tobacco scheme off to weak start
Victoria’s tobacco licensing plan has been branded a farce; No one has been criminally charged and accusations have been made that the force ignored requests for assistance from Victoria Police.
The state government has promised a wide-ranging crackdown on the multibillion-dollar illicit tobacco black market will begin on February 1 with the deployment of 14 inspectors and a new licensing regime.
At the time, there were an estimated 8,000 tobacco retailers in the state, including more than 1,300 stores linked to the illegal tobacco trade run by serious and violent organized crime groups.
But within three months, less than half a shipping container’s worth of smuggled cigarettes were seized and Magistrates’ Court records show not a single investigation was initiated.
“We are tackling illegal tobacco and helping to disrupt the organized crime gangs it funds,” a spokesman for Tobacco Licensing Victoria said.
“Inspectors found 27 violations totaling almost $250,000.
“Investigations into other regulatory actions are ongoing.”
Under government pressure, the legislation allows individuals to be fined up to $370,000 or imprisoned for 15 years, while businesses face fines of over $1.8 million.
Two law enforcement sources familiar with TLV’s operations but not authorized to speak publicly said the licensing regime was a dismal failure due to poor planning and poor implementation.
They said the 14 inspectors spent most of their efforts checking the licenses of supermarkets, chain convenience stores and gas stations rather than ‘private’ tobacco shops known to be distributors of illegal products.
Claims that TLV and Victoria Police worked closely together have been branded misleading amid allegations that TLV ignored requests to participate in joint operations or seize tobacco uncovered during police investigations.
While TLV did not say how many legal and illegal tobacco retailers it inspected, it said the agency seized “more than $6 million” in illegal tobacco products. It represents approximately 4 million cigarettes.
In response, Victoria Police seized a single lorry carrying $5 million worth of tobacco in a single operation in mid-2025.
Shipping records obtained by Age to show More than 4.4 billion illegal Manchester cigarettes Shipped to Australia from 2023-25.
Manufactured in Dubai and owned by Manchester Close links to Australian organized crimeis currently the most popular cigarette brand in the country – legal or illegal.
TLV declined to comment on allegations that law enforcement ignored requests for assistance.
“The next budget will invest $13.4 million to triple the number of Tobacco Licensing Victoria inspectors, support tough new shop closure powers and support landlords’ ability to evict businesses selling illegal tobacco,” a spokesman said.
A Victoria Police spokesman declined to comment on the existence of any disputes or provide an assessment of TLV’s work.
“Victoria Police will continue to support TLV in carrying out its tobacco licensing functions, while Crime Command will continue to target serious and organized crime figures linked to the illicit tobacco trade.”
Victoria is one of the only states in Australia where inspectors still do not have the power to permanently shut down operators.
Victoria has been in the grip of a bitter turf war for three years over control of the illicit tobacco market, which has seen more than 150 firebombings, scores of murders and scores of shootings.
The market has become so skewed by the influence of organized crime that by 2025 underworld boss Kazem “Kaz” Hamad, who established an illegal tobacco cartel enforced through violence that controls prices and distribution across the country, “could be appointed Minister of Health,” an industry source said.
“Hamad controls the tobacco market in Australia, not the government,” the source said.
Hamad’s arrest in his native Iraq in January and the closure of the Strait of Hormuz caused the biggest disruption to illicit tobacco supplies in years.
Meanwhile, on Monday, the federal parliament’s “inquiry into the tobacco crisis in Australia” will be held. begin public hearings to government policy and law enforcement activities on the $8.5 billion black market.
The issue of the federal excise tax on cigarettes is expected to be a key focus as numerous submissions to the inquiry focus on the issue as a driving force in organized crime’s infiltration of the industry.
Australian Border Force and the Illegal Tobacco and E-Cigarette Commissioner are the first to testify and are likely to face thorny questions over their apparent disagreement over whether consumption tax cuts should be considered as a possible solution to the crisis.
The ABF advocated “demand reduction measures” but refrained from openly calling for a reduction in excise duty, which would be contrary to government policy.
“ABF notes that in the absence of demand reduction measures, enforcement activity alone will continue to be offset by the continued willingness of the consumer to purchase illegal products,” it said in its written submission. The statement was included.
“Understanding consumer motivations, substitution behavior and price sensitivity is therefore important to inform complementary policy responses aimed at reducing the demand pull that sustains the market.”
ABF declined to clarify for this byline whether a tax cut was an option it advocated.
ITEC, the country’s tobacco enforcement coordinating office, has repeatedly stated that there is no evidence that the tax cut would disrupt the illicit market. Both AFB and ITEC are part of the Ministry of Internal Affairs.
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