Victoria is cracking down on illicit tobacco sales and organised crime, launching a strict business licensing scheme and “massive consequences” for breaking the law.

Under a bill introduced to state parliament amending the Tobacco Retailer and Wholesaler Licensing Scheme, tobacco can be sold by licensed retailers only.  

Licences will be granted to “fit and proper persons who pass a strict test” and can be refused based on history and known associates.

Anyone found selling illicit tobacco will face fines of more than $355,000 or up to 15 years in jail, while businesses will face fines of more than $1.7 million.  

The new licensing scheme will start from the middle of next year.  

The crackdown comes as more than 80 offenders have been arrested and $37 million worth of cash, vapes and illegal tobacco products seized in recent operations.

As insuranceNEWS.com.au has reported, firebomb attacks have hit 100 tobacco stores amid a gangland turf war. Residential buildings that also house tobacco shops are struggling to find local insurers willing to offer strata cover.

Victorian Premier Jacinta Allan says the changes will help stop legitimate businesses “getting undercut” by criminal syndicates and ban people with criminal affiliations from the tobacco trade.

“We’re implementing the toughest laws anywhere in the country to smoke out the illegal tobacco trade and keep Victorians safe,” she said.

Police search powers will be boosted to make it easier to raid stores and seize illicit products from retailers suspected of links to organised crime. There will also be powers to impose further licence conditions. 

A new tobacco regulator will be established to administer the licensing scheme, with power to search shops, suspend licences and seize illegal items. It will offer extra intelligence gathering and inspectors to work alongside Victoria Police.

“These new search powers will give police new ways to crack down on crime lords,” state Police Minister Anthony Carbines said.