Queensland Unleashes Nation’s Harshest Crackdown on Illicit Tobacco

Illegal retailers now face instant fines of $32,260 for individuals and $161,300 for companies under new laws.

A photo illustration of black market cigarettes displayed in Melbourne, Australia on March 26, 2025. Asanka Ratnayake/Getty Images

Queensland has become the latest state to ramp up its crackdown on Australia’s booming illicit tobacco market, unveiling the nation’s toughest penalties and launching targeted enforcement actions across the state.

Since April 3, authorities have conducted 36 raids, netting more than 820,000 illegal cigarettes, 180 kilograms of loose tobacco, and 24,000 nicotine pouches.

Health Minister Tim Nicholls described the enforcement challenge as a “whack-a-mole game,” with pop-up shops repeatedly springing up in new locations after being shut down.

“As soon as these pop-up shops open up and are closed by our hard-working teams, they open up yet again in another location,” Nicholls told ABC radio. “We’ve got to attack it.”

He says the Crisafulli government’s response has been swift and uncompromising.

As per the latest laws, illegal retailers now face on-the-spot fines of $32,260 (US$20,000) for individuals and $161,300 for companies supplying or possessing illicit tobacco or vaping products.

This marks a tenfold increase from previous penalties under Labor.

In addition, for the first time, commercial possession of vapes and nicotine pouches, often known as “Zyn,” can also attract instant penalties.

“These are now some of the highest infringements that can be issued in Queensland,” said Attorney-General Deb Frecklington. “They recognise the scourge that these illegal chop shops are on our community.”

Escalating Violence Across States

Although Queensland hasn’t experienced gang violence over illegal tobacco sales to the extent seen in Victoria and New South Wales, authorities say the situation is becoming increasingly volatile.

In Sydney, seven men have been arrested in connection to theft and distribution of illegal cigarettes and loose-leaf tobacco, known as chop-chop.

Victoria has seen over 100 cases of tobacconists being deliberately set alight amid ongoing gang turf conflicts.

“The nature of this conduct poses significant risks to public health and undermines our legislative and regulatory framework,” Frecklington said.

Nicholls added that the cost-of-living crisis may be fuelling demand for cheaper black-market tobacco products.

He also flagged the need for federal authorities to work closely with states to intercept illicit products at the border, particularly given the price gap between legal and illegal tobacco driven by federal excise taxes.

Illicit Market Cuts into Legal Industry

Australia’s legal tobacco industry in 2019 supported 20,000 jobs and generated $20.2 billion in gross revenue—$16 billion of which went directly to government coffers through taxation.

According to the Australian Taxation Office, illicit tobacco made up 20.4 percent of all consumption in 2019 (about 3,000 tonnes), dropping slightly to 16.9 percent in 2020.

KPMG data shows that roughly 80 percent of this illicit supply is imported, with a smaller share illegally grown and sold domestically.

Nicholls said the state government is determined to “stamp it out.”

“We make no apologies for increasing the fines ten-fold when it comes to the sale of illicit tobacco, vapes or nicotine pouches,” Nicholls said.

AAP contributed to this article.