Tasmania has passed tough new laws to crack down on illegal tobacco and vaping, with penalties including fines of more than $600,000 and the power to shut down businesses selling banned products.
The Public Health Amendment (Prohibited Tobacco and Other Products) Bill 2026 passed through state parliament on Thursday.
Deputy Premier Guy Barnett said the illegal tobacco trade had caused roughly a 60% drop in tobacco sales at legitimate retailers across the state.
“These strong new laws are a really important step in putting an end to the illegal tobacco trade, supporting our small businesses and protecting Tasmanians from harm,” Barnett said.
“It’s having a significant impact, reducing cashflow and foot traffic through stores.”
Barnett said enforcement would begin quickly, with Tasmania Police and Department of Health tobacco inspectors ready to act.
“There’s no holding back,” he said.
“The law will be enforced.”
He pointed the finger at the federal government, saying Canberra had “lost control” of the importation of illegal tobacco and vaping products into Australia.
“We need to see a national approach that drives better public health outcomes and supports community safety, putting an end to this crime-driven trade,” he said.
John Devine, chief executive of Tasmanian Independent Retailers, which represents 86 IGA-branded stores and more than 100 other independent retailers, welcomed the changes.
“The illicit trade has devastated ourselves,” Devine said.
“The tough stance that’s been taken by government is well supported by independent retailers.”
David Baxter, owner of Baxter’s IGA Supermarkets and a 49-year veteran of the industry, said the decline began early last year and had been unlike anything he had seen in his career.
“There’s been probably a sixty percent decline in cigarette sales,” Baxter said.
“Employment relates to turnover, so the impact on staffing, employment for the state, not just here, in our other stores as well, is quite substantial.”
Baxter said the key now was enforcement, comparing it to road rules.
“If you break the law, end up with a fine, losing your license,” he said.
“In business it’s not dissimilar.”
