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Independent retailers back Tasmanian tobacco law changes

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IGA supermarkets are facing a 60% drop in tobacco sales across Tasmania

Tasmanian Independent Retailers has backed the state government’s proposed tobacco law changes while pushing for further improvements to combat the illegal tobacco trade.

The organisation, representing over 80 IGA supermarkets across the state, has formally endorsed the Public Health Amendment (Prohibited Tobacco and Other Products) Bill 2026.

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TIR chair Michael Baxter said the scale of illicit tobacco activity was “distorting legitimate retail markets” across Tasmania.

“We thank the Tasmanian government for responding to our concerns about the serious problem of illegal tobacco sales,” he said.

Illegal tobacco trade is impacting legitimate businesses across Tasmania, according to TIR

“Broadly, we support and welcome this draft bill.”

“We believe the stronger penalties, premises closure powers, stronger offence provisions and, importantly, strengthened enforcement will make a material on-ground difference.”

IGA supermarkets are facing a 60% drop in tobacco sales across Tasmania

Baxter said TIR members were suffering a severe decline in tobacco product sales, with drops of up to 60% year on year.

The organisation proposed five key improvements to the draft legislation during consultation, including requiring licensed retailers to retain proof of lawful product origin through licensed suppliers.

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Other suggestions included statutory powers allowing landlords to terminate leases where premises sell illegal tobacco, criminal convictions for serious repeat offenders and stronger controls on tobacco transported into Tasmania.

TIR also called for annual public enforcement reports covering inspections, seizures, closures and prosecutions.

Tasmania’s Public Health Amendment Bill 2026 targets the illegal tobacco trade

Baxter encouraged the state government to lobby Canberra to reduce the federal tobacco excise, which he said was the most significant driver of the illicit market.

“Successive increases have created a large price gap between legal and illegal products, encouraging organised illicit supply,” he said.

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The proposed laws would allow businesses caught selling illegal tobacco to be closed for up to 90 days, with repeat corporate offenders facing fines of up to $3.28 million.

Health Minister Bridget Archer said the legislation would give Tasmania some of the toughest tobacco enforcement measures in the country.

Tasmania’s Public Health Amendment Bill 2026 targets the illegal tobacco trade

“This will help further protect the health and wellbeing of Tasmanians,” she said last month.

Abby Smith, Director of Prevention for Quit Tasmania said some illegal products are now “as easy as using Uber Eats” to obtain.

Smith said although a government crackdown on illegal tobacco and vapes was useful, it won’t be enough to tackle Tasmania’s smoking problem.

“Because of illicit trade, we really need to invest in [anti-smoking] campaigns,” Smith told Pulse.

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