Illegal Tobacco Sales

In reply to the Hon. C. BONAROS ().5 February 2025).

The Hon. K.J. MAHER (Minister for Aboriginal Affairs, Attorney-General, Minister for Industrial Relations and Public Sector, Special Minister of State):

The Minister for Health and Wellbeing, and the Minister for Consumer and Business Affairs have advised:

Our government has demonstrated its strong commitment to tackling illicit tobacco and e-cigarette sales in South Australia. In the last budget our government committed $16 million over the next four years to tackle this growing trade in illicit tobacco and to take action against anyone thinking they can still sell illicit tobacco and e-cigarette products.

From 1 July 2024, Consumer and Business Services assumed responsibility of the licensing and the enforcement functions related to illegal sales of e-cigarettes and illicit tobacco. They are now responsible for assessing new licence applications, ensuring existing licensees are complying with the law and investigating and prosecuting offenders. This tougher compliance approach is necessary to tackle the criminal activities that are occurring and is more closely aligned with their current compliance work.

Last year our government also passed legislation that:

banned the supply of vapes to any person under 18 years old—even by prescription;

increased penalties—up to $1.5 million;

banned vending machine sales of tobacco products in public areas;

introduced a new authority to ban novel products which are marketed as an alternative to vapes, and used this to ban nicotine pouches;

created a smoke-free and vape-free buffer zone for enclosed public transport areas;

allowed the issuing of a closure order on a premises so that authorised officers, and the courts, can immediately close down unlawful activity relating to illicit tobacco; and

updated licencing and enforcement provisions to allow for greater capacity to enforce breaches of the law.

These new measures have been used by both Consumer and Business Services (CBS) and South Australia Police (SAPOL) to seize illicit products across the state.

As at 24 March 2025, approximately $18 million worth of illicit products had been seized by our enforcement teams. This includes:

more than 16 million cigarettes;

more than 5.5 tonnes of tobacco;

more than 500 kilograms of shisha; and

more than 65,000 vapes.

Since new laws started on 13 December 2024 to 24 March 2025, the Minister for Consumer and Business Affairs has issued 18 interim closure orders and successfully applied to the courts for one long-term closure order.

We acknowledge that the fight against the harms of tobacco continues. Which is why this year we have introduced the Statutes Amendment (Tobacco and E-Cigarettes—Closure Orders and Offences) Bill 2025, which seeks to amend both the Tobacco and E-Cigarette Products Act 1997 and the Retail and Commercial Leases Act 1995, to further enhance powers and penalties for these illicit operators. This bill was developed by Preventive Health SA in partnership with Consumer and Business Services, South Australia Police, and with input from the Small Business Commissioner. It comes in response to a request by the Commissioner of Police to help reduce criminal activity and the risks posed to the community by the illicit tobacco and e-cigarette trade.

The new amendments will:

Provide additional powers for police to undertake additional searches in premises suspected of selling illicit products, to include searches for drugs, weapons and explosives.

Create a provision for information relating to the closure of unlicensed premises to be made publicly available.

Provide greater clarification for information sharing between our enforcement agencies, as well as their ability to disclose information relating to illicit activity to interested parties such as the owner of a premises or their agent.

Create an offence for a person who, being the owner or having the control or management of a premises, causes or permits another to engage in prohibited conduct, such as the sale of illicit products, on that premises.

Introduces the highest financial penalties in the country, for those in possession of, selling, or supplying, commercial quantities of illicit tobacco and e-cigarette products. At the highest level, anyone in possession, selling or supplying a 'large commercial' quantity will face a fine of up to $2.1 million for a first offence and $4.2 million for a second or subsequent offence. A body corporate will face an initial fine of up to $4.5 million and then $6.6 million for a second or subsequent offence. In comparison, the highest current penalty in the act is $1.1 million, and up until late 2024 the highest penalty in the legislation was $75,000.

'Tobacco sticks' or 'heat-not-burn' tobacco products are relatively new and advice from Consumer and Business Services is that its inspectors have not detected them during their inspections in SA to date. I encourage anyone who has detected this product to report these sellers to Consumer and Business Services.

They are similar to e-cigarettes (or 'vapes'), but usually have a tobacco 'stick' which is inserted into the device so that it can be heated. The heating process causes the tobacco stick to release emissions for the user to inhale.

The 'heat-not-burn' tobacco sticks are already tightly regulated. This is because they are regulated by the commonwealth therapeutic goods law which, as I am advised, effectively prohibits their sale.

Additionally, depending on the product type, a 'heat-not-burn' device may be classified as an 'e-cigarette product' under South Australia's tobacco and vaping legislation. Under this legislation, persons who sell or supply e-cigarette products unlawfully could face fines of up to $1.1 million for offences under the act. The government will continue to closely monitor these products to ensure they are not being sold here. If it is required however, we will not hesitate to further regulate any new nicotine product that threatens the health of South Australians, particularly young people, in the same way that we have recently done for nicotine pouches.

The government has committed to conducting an assessment of the smoke-free generation model proposed by the Hon. Frank Pangallo MLC.

Preventive Health SA is leading this assessment, analysing the legal implications, enforcement frameworks, the health and equity effects, and the business and economic impacts associated with the smoke-free generation model. This advice will enable the government to make a fully informed decision.

New enforcement powers have also been used to issue interim closure orders on premises found supplying and selling illicit tobacco and e-cigarette products to prevent traders operating for 72 hours. These orders have resulted in shops closing for the period of the order. The Minister for Consumer and Business Affairs will continue to work closely with CBS to ensure a hardline approach to tackle the industry, utilising both interim and long-term closure orders along with other powers to enforce the Tobacco and E-Cigarette Products Act 1997.

The recently introduced government bill, the Statutes Amendment (Tobacco and E-Cigarettes—Closure Orders and Offences) Bill 2025, proposes amendments to both the Tobacco and E-Cigarette Products Act 1997 and the Retail and Commercial Leases Act 1995, to further enhance powers and penalties for these illicit operators.