The Malinauskas Labor Government’s nation-leading efforts to tackle illicit tobacco and reduce smoking rates is seeing strong results, with a record number of inspections, closure orders, and expiation notices issued.
From 1st of July 2024 to 31st of May 2026, Consumer and Business Services (CBS) has undertaken 923 inspections and issued 93 expiation notices. The Minister for Consumer and Business Affairs has issued 277 closure orders.
Smoking rates have also fallen to their lowest levels ever – at 7.5 per cent.
Now, an uplift in funding through a partnership between the Albanese and Malinauskas Labor Governments will provide $3 million to allow authorities to increase enforcement activities, aimed at disrupting illicit trade.
These new funds will be used to scale up resources and operational capacity within CBS to carry out enforcement activities that more effectively disrupt illicit trade, and to safely transport and dispose of seized products.
The emergence of the illicit tobacco and e cigarette market, nationally and within South Australia, has created significant community safety and public health risks.
This further investment in enforcement will enable increased proactive action to help reduce criminal activity and the risks posed to the community.
South Australia has recently received national recognition for its achievements and progress in reducing smoking rates and strengthening illicit tobacco legislation and enforcement.
The Australian Council on Smoking & Health has rated South Australia as ‘way out ahead’ on the National Illicit Tobacco Ladder; a state-by-state ranking on how each state or territory government is performing to address illicit trades in their jurisdiction.
Notably, South Australia is the only state to have banned online tobacco sales, further strengthening supply chain controls and protecting young people.
Tighter reforms were introduced last year to grant CBS and South Australia Police more powers against any individual or small business found to be involved in the illicit tobacco and nicotine product trade.
These reforms also include giving landlords the right to end a retail lease and introducing the highest financial penalties of any Australian state or territory.
This funding builds on the $40 million in Australian Government funding provided in 2025 to support states and territories to establish local capability to proactively respond to localised compliance and enforcement challenges associated with the trade of illicit tobacco and nicotine products.
It is currently estimated that the illicit trade now accounts for more than half (55 per cent) of the total Australian tobacco and e-cigarette market.
Smoking continues to be one of the leading causes of preventable death and burden of disease in Australia and has an estimated $2.3 billion impact on the state’s economy each year.
South Australians can also report illicit tobacco outlets to Consumer and Business Services by visiting cbs.sa.gov.au/tobacco
As put by Blair Boyer
Our government is taking the necessary actions to disrupt illicit tobacco because we know the damage it causes to the health of South Australians.
In partnership with the Albanese Labor Government, we are taking more action than ever to prevent illegal activity here in South Australia.
I’m proud that we are seeing record low levels of smoking in South Australia. This is a great result for people’s health. But we can’t stop there – we must be vigilant in preventing criminal behaviour that only seeks to cause harm while making a profit.
As put by Michael Brown
The Malinauskas Government’s nation-leading crackdown on illegal tobacco and vape products is delivering real results.
Through the tireless and coordinated work of CBS and SAPOL, we have delivered tough penalties, issued hundreds of closure orders, and made a real impact in disrupting this illicit trade.
But there is more work to be done, and with this welcome increase in Commonwealth funding for our tough compliance measures, enforcement activities are set to increase statewide.
We know that this black market won’t go quietly, which is why we stand ready to further strengthen our laws if necessary to protect the public and stamp out the sale of illicit tobacco and vape products in South Australia.
