Extra Commonwealth funding to support Queensland’s tobacco crackdown which new data shows is cutting criminal profits

Department of Home Affairs

​The Albanese Government is delivering a $2.7 million funding boost to support the Queensland Government’s illicit tobacco compliance and enforcement capabilities, bringing the Commonwealth’s total investment in the State to more than $18 million.

Queensland’s intensified crackdown on illicit tobacco is delivering financial and public health outcomes, with data showing enforcement is supporting legitimate businesses while disrupting illegal supply networks.

Data provided by major retailers to the Office of the Illicit Tobacco and E-cigarette Commissioner shows Queensland is making significant progress in stamping out illicit tobacco, building on South Australia’s pioneering approach.

The state’s enforcement resourcing has been paired with strong long-term closure powers, landlord enforcement powers, and ‘blitz operations’, targeting 100 per cent of stores in an area at once, which are driving consumers back to the legal market.

It is expected these activities will generate $89 million in additional excise revenue and a further $11 million in GST gains over two years, with potential returns matching or exceeding enforcement costs.

New retail data shows that legal tobacco sales in Queensland have increased 55 per cent in the first month after strong legislative powers came into effect and remained 40 to 45 per cent above baseline levels over the following six months, while legal tobacco sales nationally remained largely flat.

Importantly, calls to Quitline also more than doubled in the 10 days following major enforcement operations, suggesting the crackdown may be encouraging some smokers to quit.

Queensland’s settings cover 7 of the 8 critical priorities jointly identified by Commonwealth, state and territory officials, relating mainly to licensing regimes, closure orders, landlord penalties and resourcing for street level enforcement.

The State’s recent 10-day Operation Major enforcement blitz saw 148 stores issued with three-month closure orders, with more than 11.8 million cigarettes, 1.7 tonnes of loose tobacco, 87,000 vapes, 4.2 litres of vaping liquid and 270,000 nicotine pouches.

New laws in November 2025 gave Queensland Health the power to shut illicit tobacco and vape stores for up to 90 days without a court order. Landlords who knowingly lease premises to illicit tobacco and vape operators face significant penalties, including fines of up to $161,300 and up to 12 months imprisonment.

Queensland Health has also issued more than 300 closure orders since November 2025, contributing to the more than 1,000 illicit tobacco closures announced by states and territories across Australia.

These findings support a comprehensive approach to tackling illicit tobacco, which combines strong licensing and compliance frameworks, border enforcement and offshore disruption activities, alongside measures that reduce demand. This includes smoking cessation support, public education and efforts to reduce the social acceptability of illicit tobacco.

Quotes attributable to the Assistant Minister for Citizenship, Customs and Multicultural Affairs, the Hon Julian Hill MP:

“Queensland’s results building on South Australia’s pioneering approach show that sustained street-level enforcement can disrupt illegal markets and drive consumers back to legitimate products. Every illicit tobacco store shut down is another blow to the criminal gangs profiting from this trade.

“Strong laws, strong enforcement and strong partnerships between governments are helping turn the tide on Australia’s illicit tobacco trade. Organised crime groups have treated illicit tobacco as a low-risk, high-profit enterprise for too long. Those days are coming to an end.

“We are making it harder for criminals to operate, harder for illicit products to reach consumers and harder for organised crime to profit. Every Australian can play their part by reporting suspicious illicit tobacco retail activity to Borderwatch or Crimestoppers.”

For help to quit smoking or vaping, download the
My QuitBuddy app, call
Quitline on 13 78 48, or visit
quit.org.au.

To report suspected illicit tobacco or vape sales:

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