Victoria’s tobacco regulation scheme has been the subject of recent scrutiny on a number of fronts, from legislation to health promotion to law enforcement. 

An increase in illicit tobacco within the tobacco market and an extended spate of arson attacks on tobacconists have highlighted both organised crime’s involvement and the need for reform. Some fear that an uptick in criminal activity and the availability of illicit tobacco at discounted prices are undermining public health efforts. 

In 2022 Better Regulation Victoria recommended that Victoria introduce a licensing scheme for tobacco retailers and wholesalers, which would bring the state into line with other Australian jurisdictions. The Tobacco Amendment (Tobacco Retailer and Wholesaler Licensing Scheme) Bill 2024 seeks to establish such a scheme as well as a new regulator to administer the scheme. Among other provisions, the Bill would also grant new powers for Victoria Police to assist in combatting illicit tobacco activity and heavier penalties for non-compliance. 

This paper details the background to the Bill’s introduction, including the current regulatory settings for tobacco products and vaping products. It also provides a summary of the second reading speech, key provisions of the Bill, stakeholder responses and current or proposed schemes in other jurisdictions. The final section explores some of the key issues, including the tobacco tax gap, the so-called ‘tobacco wars’ and recent trends in smoking behaviours.