Australia: Retailers will soon need a license to sell tobacco

Australia is stepping up efforts to regulate tobacco sales by introducing compulsory licensing for retailers to combat a growing illicit tobacco market, which has been linked to organized crime and lost tax revenue.[1]The measure, combined with a reduction in the number of points of sale, could help reduce consumption.

A license will soon be required for the retail sale of cigarettes

All tobacco retailers in Australia's states and territories already have or will be required to have a license to sell tobacco products. The introduction of a license aims to better control the sale of these products, whereas of the country's six states, the three most populous, representing 771,330 people, did not require such a system for points of sale. This widespread adoption of the measure is also part of a recent government decision to reduce the number of points of sale.

This measure comes at a time when the number of tobacconists suspected of involvement in organized crime is on the rise, and a study shows that living in an area with a high number of tobacconists increases the incentive to buy tobacco and lowers its price due to competition.[2].

In 2024, Australian researchers published a study examining the evolution of illicit tobacco trade violations in the country. They relied on a content analysis of press articles and government announcements published between January 2000 and December 2023. The results show a significant increase in illicit tobacco seizures since 2013, with a sharp rise from 2018 onwards. More than 827 million cigarettes were seized during the period studied. The median value of seizures is estimated at AUD 1.5 million, suggesting a substantial loss of tax revenue.[3]Progression can also result from progression in the controls carried out.

However, the introduction of compulsory licensing is considered a necessary step in the fight against illicit markets, along with the development of controls across the entire supply chain. The Australian government has already taken some steps in this regard, establishing the Illicit Tobacco Taskforce (ITTF), tasked with targeting smuggling operations and dismantling criminal networks.

Reduction of points of sale

Licensing tobacco retailers can also reduce the number of outlets. Reducing the number of tobacco outlets is one of the measures designed to reduce the accessibility and visibility of products in everyday life, thereby contributing to a decrease in prevalence. This measure was a key component of New Zealand's plan to create a tobacco-free generation, adopted by the previous government but since abolished.

In Australia, the lack of tobacco licensing allows any type of store to sell them. This exposes children to these products. They are free to enter some stores, where tobacco is sometimes attractively displayed alongside toys or behind windows depicting cartoon characters. Some tobacconists even paint their storefronts with these images, while toy stores sell tobacco and tobacconists display confectionery and toys in their windows. By limiting supply and reinforcing the perception that smoking is neither normal nor practical, these policies can significantly contribute to reducing smoking rates and preventing new generations from developing the habit.

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[1] Gartner, Coral, Bendotti, Hollie, Morphett, Kylie, Okninski, Michaela Estelle, Retailers will soon need a license to sell cigarettes. But more is needed to control the illegal trade, The Conversation, published March 4, 2025, accessed March 4, 2025

[2] Bendotti, Hollie, Gartner, Coral, Marshall, Henry, Ireland, David, Garvey, Gail, Lawler, Sheleigh, Exploring associations of population characteristics and tobacco and vape retailer density and proximity in Australia: a scoping review, Tobacco Control, published July 5, 2024, accessed March 4, 2025

[3] Meciar, Isabel, Puljevic, Cheneal, Holland, Alice, Gartner, Coral, A Content Analysis of Illicit Tobacco-Related Crimes Reported in Australian Media, Oxford Academic, published October 26, 2024, accessed March 4, 2025

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