Australia Landlords Face Jail & $165k Fines for Allowing Illegal Vape Sales

Australia Illegal Tobacco Vape Ban

Australian states are escalating their fight against a booming illegal tobacco and vape market, with new and proposed laws taking aim not just at retailers but also at the landlords who lease them space. This crackdown comes in response to a sharp increase in illicit tobacco-related crime, including over 250 firebombings of tobacconists across Australia since March 2023, as organized crime syndicates vie for control of the lucrative black market.

Queensland is set to introduce what could be the nation’s toughest penalties. Under proposed new laws currently under review, landlords who fail to evict tenants found to be selling illegal tobacco and vapes could face a maximum fine of over A$160,000, one year in jail, or both. Corporations acting as landlords would risk fines exceeding A$800,000. These civil penalties are designed for easier and faster enforcement than criminal prosecutions. The Shopping Centre Council of Australia has supported Queensland’s proposal as a model for other states, stating it gives landlords the “backing and protections they need” to act.

This follows recent moves in South Australia, where landlords can now terminate the leases of tenants selling illegal products and can be fined up to A$10,000 for a first offense if they turn a blind eye. New South Wales has also introduced lease termination powers for landlords and is considering penalties for those who knowingly lease to illegal suppliers.

These actions are part of a broader effort to disrupt the business model of crime syndicates who have reportedly threatened shop owners with an “earn or burn” ultimatum: sell illegal products for the syndicate or have their stores burnt down. The “turf wars” have also been linked to murders.

While all states and territories now have tobacco retailer licensing schemes, there are significant differences in enforcement and penalties. South Australia and Victoria have some of the highest penalties, including massive fines and substantial jail time for retailers. NSW and SA can also impose closure orders of up to 12 months. Queensland’s proposed reforms would also allow for immediate three-month on-the-spot closure orders.

However, Western Australia, Tasmania, the ACT, and the Northern Territory are seen as lagging, with much weaker penalties and no specific powers for landlords to end leases with illegal sellers. Public health advocates are calling for a unified national approach, including capping and reducing the number of tobacco retail licenses, setting minimum retail prices to identify illicit sales, and penalizing ATM providers who service shops found to be selling illegally. With the recent appointment of an Illicit Tobacco and E-cigarette Commissioner, Amber Shuhyta, the focus is on strengthening state and territory enforcement rather than reducing federal tobacco taxes, which some argue fuels the black market.

Matthew Ma
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