Up in Smoke? What You Need to Know About Victoria’s New Tobacco Laws

From 1 July 2025, tobacco retailers and wholesalers must be licensed to sell tobacco products in Victoria (see Part 3AA Tobacco Act 1987).

“Tobacco products” include cigarettes, cigars and any other products containing tobacco and designed for human consumption, but excludes e-cigarettes and vapes.

The tobacco business licensing scheme is intended to:

• help address the health risks associated with tobacco
• deter unsuitable people from selling tobacco and running tobacco businesses
• protect legitimate businesses from being undercut by criminal groups
• support Victoria Police and other law enforcement groups to fight serious organised crime and disrupt the supply of illegal tobacco

PENALTIES

There will be tough new penalties for anyone operating without a licence or caught processing or selling illicit tobacco- it will introduce some of the harshest punishments in Australia.

It will be an offence to sell tobacco without a licence, with a penalty of up to:

• $170,948.40 or five years jail for an individual
• $854,742  for a body corporate.

An individual licensee may be fined up to $12,210.60 for breaching licence conditions. Body corporates may be fined up to $61,053.

Any person found to be selling illicit tobacco will face fines of up to $170,948.40 or up to 15 years jail, while businesses will face fines of more than $854,742.

HOW TO APPLY

All tobacco retailers and wholesalers must apply online for a licence to sell tobacco products in Victoria. Applications will open 1 July 2025, with enforcement beginning 1 February 2026.

There are two categories of tobacco licence:

• Retail licence: For any business where there are retail sales of tobacco to members of the public, including from vending machines
• Wholesale licence: For any business that sells tobacco to any other retail or wholesale business

A business that sells both retail and wholesale tobacco will need both licence types and Applicants with multiple business locations must acquire a separate licence for each location.

Who can apply?

Applications must be submitted online through Service Victoria at https://business.service.vic.gov.au/s/tobacco-get-started?type=Tobacco. Applicants will be assessed to ensure they are a fit and proper person.

Applications for a tobacco licence can be made by:

• an individual sole trader who is over the age of 18 years
• a partnership
• a company
• an incorporated association

To submit a licence application, you must have the authority to act as an authorised applicant. This means if you apply as a:

• individual (sole trader), you must be that individual
• partnership, you must be a partner
• company, you must be a director
• incorporated association, you must be an executive committee member

The authorised applicant must sign and submit the application even if they have asked someone else to complete the forms on their behalf.

Information you will need to apply

To apply the following information must be provided:

• personal details of the applicant and their associate(s) including:
  • full names
  • dates of birth
  • residential addresses
  • details of criminal history
  • tobacco licensing history
  • history of bankruptcy
• information about the tobacco business including:
  • type of business
  • addresses of the proposed locations to be licenced
  • types of products sold
  • associated websites or social media accounts

Application Fees

The application for licences granted before 30 June 2026 to cover you until 30 June 2027 is $1,175.20.

You will need to apply to renew your licence by 30 June each year.

YOUR OBLIGATIONS

As a licensee you will be required to comply with the Tobacco Act 1987 and legislation relating to the licensing scheme and display a copy of your licence in a way that is visible to the public.

NO IFS, JUST BUTTS: YOUR TOBACCO LICENCE CHECKLIST

• Prepare early: apply now to ensure compliance before enforcement begins in February 2026.
• Gather documentation: have all necessary personal, business, and compliance information ready before starting your application.
• Stay compliant: license must be reviewed annually, and any changes in the business structure or location must be reported.
• Understand the risks: significant penalties, including fines and potential imprisonment, apply for non-compliance or involvement in illicit tobacco trade.

Brand Partners Commercial Lawyers can assist with your questions you may have about your obligations under the new legislation.   Give us a call today on (03) 9602 5800.