Businesses caught selling illegal tobacco in Tasmania could be forced to close for up to 90 days and face fines of more than $3 million under draft laws released by the state government.
The Public Health Amendment (Prohibited Tobacco and Other Products) Bill 2026 proposes new powers to temporarily shut down premises suspected of selling illicit tobacco or vapes, with repeat corporate offenders facing penalties of up to 16,000 penalty units – equivalent to $3.28 million.
Health Minister Bridget Archer said the legislation would give Tasmania some of the toughest tobacco enforcement measures in the country.
“This will help further protect the health and wellbeing of Tasmanians,” she said.
The announcement follows a fortnight of joint operations between tobacco control officers and police, which netted 2.1 million cigarettes, more than 1,000 kilograms of loose tobacco and 735 vapes.
Authorities estimate the combined street value of the seized goods at $3.2 million.
Police Minister Felix Ellis said the crackdown would continue.
“The new legislation will strengthen the work of tobacco control officers, who are on the ground every day protecting communities from illegal tobacco and vaping products,” he said.
Retail groups have thrown their support behind the proposed laws, warning the illegal trade is crippling legitimate businesses.
Tasmanian Independent Retailers chair Michael Baxter said tobacco sales at IGAs and convenience stores had plummeted by about 60% year on year.
“These laws can’t come soon enough,” he said.
“Our members right around the state are reporting that this is already meaning job losses, and is threatening the viability of some smaller stores.”
The Australian Association of Convenience Stores, which represents 250 Tasmanian service stations and convenience stores, also backed the bill but called for additional measures to allow landlords to terminate the leases of tenants caught selling illicit products.
AACS chief executive Theo Foukkare said the 90-day closure orders would disrupt the black market’s supply chain.
He urged the federal government to pause tobacco excise increases, arguing tax hikes had driven smokers toward cheaper illegal products.
“The prime minister and Health Minister Mark Butler have been told time and time again … that their reliance on continued tax hikes on government-approved, legal tobacco products has driven adults who choose to smoke to buy much cheaper, unregulated, untaxed illicit tobacco from the black market,” he said.
Public consultation on the draft legislation closes on March 6.
