In short
- The amendments would increase maximum fines for possession of large commercial quantities of illicit tobacco to $21 million and extend business closure orders to 130 days.
- Expiations for supply and possession will rise from $20,000 to $175,000, and ATMs will be banned from unlicensed tobacco retailers.
What happened
South Australia's government is introducing amendments to cigarette and retail laws, targeting landlords who repeatedly permit illegal tobacco sales, with penalties including up to a year in jail and increased fines. The proposed changes also raise maximum fines for possession of large commercial quantities of illicit tobacco to $21 million and introduce a new 130-day business closure order.
Additional measures include banning ATMs from retailers selling tobacco without a proper licence and increasing expiations for supply and possession from $20,000 to $175,000. The amendments will be tabled in state parliament this week, with authorities aiming to strengthen both landlord obligations and enforcement powers against the illicit tobacco trade.
But with power comes responsibility, and we're also putting obligations on landlords to make sure that those landlords who turn a blind eye to people operating illegal tobacco stores, or those landlords who are actually involved in the tobacco trade, will face harsh penalties themselves.
In numbers
- $21 million maximum fine for possession of large commercial quantities
- $6.6 million previous maximum fine
- $175,000 new expiation for supply and possession
What compliance teams should check
- Review lease agreements and tenant screening processes for compliance with the proposed landlord obligations under the South Australia amendments.
- Update internal controls to monitor for the new $21 million fine threshold and 130-day closure order risk for illicit tobacco activities.
- Ensure procedures are in place to comply with the ban on ATMs in premises found selling tobacco without a proper licence.
Why it matters
This story signals a significant escalation in South Australia's approach to illicit tobacco, directly impacting landlords, retailers, and compliance teams. The proposed amendments introduce much harsher penalties, including up to a year in jail for landlords and fines up to $21 million, as well as extended closure orders. Compliance officers must adapt to these new obligations and enforcement risks, ensuring that property management, retail operations, and financial controls are robust enough to prevent involvement in or facilitation of illegal tobacco activities.
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