Queensland landlords could soon face jail for ignoring illegal tobacco. What are other states doing?
- Written by Coral Gartner, Director, NHMRC Centre of Research Excellence on Achieving the Tobacco Endgame, The University of Queensland
Reports of illegal tobacco crimes have sharply increased in Australia in recent years. Organised crime syndicates believed to be behind tobacco smuggling operations have also infiltrated the retail sector.
There have been more than 250 firebombings of tobacconists and other shops across Australia since March 2023. Owners have been threatened to “earn or burn”: either sell tobacco illegally for the syndicate, hand over the keys to their shop, or have it burnt down.
Some arson attacks are between rival syndicates vying for control of the illegal market. There have also been murders – including an innocent bystander killed in Melbourne in an arson attack – associated with these “turf wars”.
While all states and territories are grappling with how to respond to this growing problem, some are much further ahead than others.
Steep fines and even jail for landlords
Since June, landlords in South Australia have been able to terminate the leases of tenants using their premises to sell illegal tobacco or vape products.
The state’s landlords are also being held to account. Those who turn a blind eye to illegal tobacco sales in their premises can now be fined up to A$10,000 for a first offence, with corporations facing a $25,000 fine.
But Queensland looks set to introduce even tougher penalties for landlords than South Australia. Under proposed new laws, Queensland landlords who don’t evict tenants who use their premises to sell illegal tobacco and vapes would face a maximum fine of more than $160,000, one year in jail – or both.
Landlords trading as a corporation would also risk a maximum fine of more than $800,000 under new civil penalties that would be easier to enforce than chasing a criminal prosecution.
The new Queensland laws are being reviewed by a parliamentary committee, with public submissions closing this Friday. Its final report is due on November 7.
The Shopping Centre Council of Australia supports Queensland’s proposal, saying it’s a model for other states because they “give landlords the backing and protections they need”.
Meanwhile, New South Wales has already introduced lease termination powers for landlords. It’s also reviewing whether to introduce penalties for landlords who knowingly lease their premises to illegal tobacco and vape suppliers.
Which states are lagging on action?
All states and territories now have tobacco retailer licensing schemes. But there are big differences in the offences and penalties for retailers found selling or possessing illegal tobacco and vapes.
At the higher end, maximum penalties include large fines (such as $2.1 million for individuals committing a first offence in South Australia involving a large quantity of illicit tobacco or vapes) and substantial jail time (such as 15 years’ imprisonment for illicit tobacco sales in Victoria).
Like South Australia, New South Wales can close tobacco retailers for up to 12 months.
Queensland’s proposed reforms would also extend the duration of on-the-spot closure orders to three months (up from 72 hours), or up to 12 months through the courts (up from a maximum of six months).
But Western Australia, Tasmania, the Australian Capital Territory and the Northern Territory are lagging. They all impose much weaker penalties for retailers caught selling illegal tobacco products.
They also haven’t acted to make it easier for landlords to end leases of illegal tobacco sellers.
What else do we need to do nationally?
All states and territories need adequately resourced enforcement officers and laws that support swift action against retailers involved in illegal sales.
A key feature of Queensland’s planned approach is the focus on rapid enforcement measures, such as large on-the-spot fines and immediate closure orders, rather than relying on lengthy court processes.
When Queensland authorities find illegal tobacco or vaping products in retail outlets, the proposed reforms would also allow them to seize all smoking products onsite. This measure would speed up enforcement action by avoiding the time-consuming process of determining the legal status of every product in the shop.
There are many more policy changes that could further help control illegal tobacco and vape sales. Priorities include:
Reducing legal sales licences: we recommend all states and territories cap and reduce the number of tobacco retailer licences that are issued.
The market has too many tobacco retailers for a declining consumer base. So at a minimum, no retailer licences should be issued to new applicants.
This would also prevent crime syndicates from simply obtaining a new licence under a different name when a licence is cancelled or a closure order is imposed.
Minimum prices: setting a minimum retail price for tobacco products would help authorities rapidly identify retailers involved in illegal tobacco sales.
Making cash sales harder: ATMs are commonly found in retail outlets selling tobacco illegally, because the machines enable cash transactions. We suggest that – like the new penalties for landlords – ATM providers should face large penalties if they don’t immediately remove their machines from premises found selling tobacco illegally.
Australia now has an Illicit Tobacco and E-cigarette Commissioner, Amber Shuhyta. As Shuhyta has said, simply reducing the federal tobacco tax would not reduce this illegal market.
Improving the ability of state and territory authorities to take faster, more meaningful action against retailers supplying tobacco illegally offers a far more promising approach.
Authors: Coral Gartner, Director, NHMRC Centre of Research Excellence on Achieving the Tobacco Endgame, The University of Queensland
