Victorian Tobacco Retailers Face New Fines of Up to $1500

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Victorian businesses could soon be slugged up to $1500 a year to sell tobacco, 9News can reveal.

In a recent effort to address the ongoing turf war, all shops aiming to sell cigarettes will soon need to obtain a license. Health Minister Mary-Anne Thomas announced that the development of these licenses is currently underway.

Acquiring these new licenses will be costly, as the government has suggested that application and annual renewal fees will range from $1100 to $1490 per shop. The industry has expressed its discontent with these fees.

MELBOURNE, AUSTRALIA - MARCH 26: A photo illustration of black market cigarettes displayed on March 26, 2025 in Melbourne, Australia. The budget is expected to return to deficit after two years of surplus, focusing on cost-of-living relief measures, including extended electricity rebates and increased healthcare spending, while also addressing economic challenges and potential voter concerns ahead of the upcoming federal election. (Photo Illustration by Asanka Ratnayake/Getty Images) — Victorian businesses could soon be slugged up to $1500 a year to sell tobacco.(Getty)

“We don’t support the government with their proposed fee range,” stated Theo Foukkare, the chief executive of the Australian Association of Convenience Stores, in an interview with 9News.

”We’d be suggesting around $500, which is where it’s at in Queensland.”

Every other state and territory already has a licensing scheme, with Victoria the last and the priciest to create one.

Only Tasmania comes close, where it costs $1340 for a tobacco licence, followed by NSW, where it’s $1100.

Other states and territories are vastly cheaper, including the ACT ($638), Queensland ($474), South Australia ($340), Western Australia ($278), and the Northern Territory ($282).

“The cost of doing business over the last three years has exploded and the last thing we need is a very high licence fee,” Foukkare said.

The Victorian government admits online that it may “disproportionately impact smaller businesses”, but believes the impact will “be relatively small because businesses should be able to pass on the cost through the sale of tobacco and other products”.

“My concern around the fees are they’re very high,” Shadow Minister for Consumer Affairs Tim McCurdy said.

“People will pay the cost, Victorians will pay the cost.”

There are concerns too that high licence fees may spark a bigger crisis by potentially encouraging retailers to operate in the blackmarket, Foukkare said.

Businesses have got around a month to make their case for a lower price before the new fees are then set in May’s budget.

The licensing scheme will then start on July 1, though no one will be checking them until the middle of next year.

“They’ve been slow pulling this together, we passed the legislation last year,” McCurdy said. “It needs to come a bit quicker than that.”