SA Introducing the Toughest Illegal Tobacco Laws in the Nation
South Australia is continuing to lead the nation in its crackdown on the illicit tobacco trade, with the Malinauskas Labor Government introducing the toughest penalties of any state or territory to State Parliament this week.
For the first time in South Australia, illicit tobacco dealers will face jail time of up to 17 years, under the proposed laws.
South Australia will join WA with the highest financial penalties in the nation for the supply and possession of large commercial quantities of illicit tobacco products increasing from up to $6.6 million to up to $21 million - more than ten times higher than the penalties in many other jurisdictions.
The Illicit Tobacco Taskforce within Consumer and Business Services will also gain the power to issue medium-term closure orders of 130 days – the longest in the nation – in addition to 28 days (short-term) and 7 days (interim). The long-term closure order will remain at 12 months via the Magistrates Court.
In addition, expiations will be expanded and reach up to $175,000 (up from $20,000) for offences related to the supply and possession of commercial quantities of illicit products.
Introducing imprisonment terms will bring South Australia in line with Queensland, New South Wales and Victoria, with proposed jail terms of between five and 17 years to deter criminal operators involved in illicit trade.
Under the Retail and Commercial Leases Act 1995, landlords will also be able to terminate the lease when a short-term, medium-term or long-term closure order is in place, where previously they could only terminate the lease of those subjected to long-term closure orders.
Landlords will face a one-year term of imprisonment for a second or subsequent conviction of knowingly causing or permitting their premises to be used for illicit conduct. They will also be expected to take reasonable steps to prevent the conduct, such as reporting the conduct to an Authorised Officer or will face fines ranging from $175,000 to $350,000.
A ‘compromised goods’ provision will also be introduced to allow the seizure of all tobacco or e-cigarette products present at a premises, regardless of whether they are legal or illicit, during inspections if breaches are found. This will increase ease of enforcement for authorised officers and act as a deterrent to possess illicit products.
In addition, ATMs will be banned from any retailer found to be selling or supplying prohibited products, or tobacco products without the appropriate licence, as cash-based transactions are increasingly used in illicit tobacco and e-cigarette transactions.
Furthermore, new provisions on tobacco store licence applications will enable the Minister for Consumer and Business Affairs to consider the proximity of such retailers to important spaces such as schools and community centres, and the proximity of one licensed tobacco retailer to another. This will enable greater controls on the placement and volume of licensed tobacco retailers.
The Malinauskas Government has led the nation in its approach to cracking down on the illicit tobacco trade, with its $16 million Illicit Tobacco Taskforce beginning operation in 2024.
South Australia was the first state to introduce closure orders of up to 12 months, as well as multi-million dollar penalties for those caught selling illicit tobacco and the Malinauskas Government has been relentless in its efforts to increase enforcement and curb organised crime.
It is estimated that approximately 75 per cent of the illicit tobacco market in Australia is controlled by organised crime groups.
In addition, smoking is the leading cause of preventable death and disease in Australia and the availability of illicit products poses a significant public health risk and threatens to undo decades of progress in tobacco control.
South Australia’s approach to illicit tobacco enforcement has been recognised as among the best in the nation by the Australian Council on Smoking & Health.
Two years in a row they have awarded SA an ‘A’ grade and in 2026 said we were ‘way out ahead’ of other states on their National Illicit Tobacco Ladder – a state-by-state ranking on how each state or territory government is performing to address illicit tobacco in their jurisdiction.
The proposed amendments will be tabled in Parliament this week and will apply to the Tobacco and E-Cigarette Products Act 1997 and the Retail and Commercial Leases Act 1995.
Quotes attributable to Nadia Clancy
The sale of illicit tobacco negatively affects nearby businesses, including getting caught up in the turf wars between criminal organisations.
These reforms will help protect innocent business owners who just want to go about their work without the threat and inconvenience of operating near an illegal enterprise.
These laws further highlight South Australia’s leading role in addressing the illegal tobacco market and supporting legitimate business owners who shouldn’t have to suffer just because of where their business is located.