South Australia Unveils Nation's Toughest Illicit Tobacco Laws with $21M Fines

South Australia has introduced legislation to Parliament establishing the country’s harshest penalties for the illicit tobacco trade, proposing up to 17 years in prison and maximum fines of $21 million. The move aims to dismantle organized black-market networks and align state penalties with criminal syndicates operating across state borders.

Stiffer Penalties and Extended Jail Terms

Under the proposed bill, financial penalties for the supply and possession of large commercial quantities of illicit tobacco will rise from $6.6 million to $21 million—more than 10 times higher than in other Australian jurisdictions. Expiation fees will also increase from $20,000 to $175,000 for commercial-scale offences.

The proposed prison terms of five to 17 years bring South Australia in line with states such as Victoria, New South Wales, and Queensland, creating a stronger criminal deterrent.

Expanded Enforcement and Landlord Accountability

The Illicit Tobacco Taskforce, operating within Consumer and Business Services, will gain new operational powers to disrupt non-compliant businesses:

Medium-Term Closures: Regulators can now order 130-day closures, in addition to seven-day, 28-day, and 12-month orders.
Total Inventory Seizure: Inspectors can seize all tobacco and e-cigarette products on site during a breach, regardless of whether individual items are legal or illicit.
ATM Prohibitions: Retailers caught selling tobacco without a valid licence will be barred from hosting on-site ATMs.
Retail Proximity Rules: Regulators can consider proximity to schools, community centres, and competing retailers when assessing tobacco licences.

The legislation also targets commercial property owners. Landlords will be permitted to terminate leases early if a tenant receives any closure order. Property owners who knowingly permit illicit tobacco sales on their premises face up to one year of imprisonment for repeat convictions.

South Australia previously became the first state to enforce 12-month business closures and multi-million-dollar fines for illegal sales, earning an “A” grade from the Australian Council on Smoking & Health for its enforcement record.

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