SA government says illicit tobacco prices increasing in response to store crackdown
Untaxed cigarettes and illegal vapes displayed at a South Australian government media conference. (ABC News)
In short:
It has been a year since new illicit tobacco laws were introduced in South Australia.
Minister Michael Brown says the laws have led to increased prices for products sold in stores.
What's next?
The government is looking at how it can better target repeat offenders.
The South Australian government says a crackdown on illegal tobacco stores is having an impact, including price increases in some areas.
Consumer and Business Affairs Minister Michael Brown said he and his predecessor had closed 228 stores for 28 days each for selling illegal cigarettes and vapes since stricter closure orders were introduced a year ago.
Mr Brown said he believed a price increase for tobacco reported by inspectors within stores was indicative the trade was being disrupted.
"We've found that that's actually having an impact now on the illegal tobacco trade," he said.
"We're finding that in some areas the price of illegal tobacco has actually started to rise for the first time, and we believe largely because of the enforcement efforts that Brett [Humphrey] and also SA Police are doing."
Cigarettes and loose tobacco from unlicensed stores sell for much less than in legitimate businesses. (ABC News: Che Chorley)
Mr Humphrey is South Australia's Commissioner for Consumer and Business Services, which has been responsible for tobacco licensing and enforcement since 2024, backed by an increase in compliance funding.
"Those stores are realising that the risk is increasing and they need to increase their reward," Mr Humphrey said.
"So, they're putting their prices up to try to get more money in, knowing that it's inevitable sooner or later we're going to come marching through their doors and shut them down."
Smoking rate and crime down
State government survey statistics show the daily smoking rate dropped from 10.6 per cent in 2020 to 7.5 per cent in 2025; however, the daily vaping rate rose from 2.6 per cent to 6.4 per cent over the same period.
Michael Brown recently took over as the South Australian Minister for Police and Consumer and Business Affairs. (ABC News: Daniel Taylor)
Mr Brown said crimes like firebombing and kidnapping associated with the illegal tobacco trade had decreased, although he could not share police figures publicly.
"It has been pleasing to see those crimes associated with the illegal tobacco trade have reduced over the last few months," he said.
With the state government, the Commonwealth is providing $3 million to increase enforcement activity in South Australia.
Hard to track repeat offenders
The state government has only issued three 12-month closure orders, which have to go through a court to get approved.
Even with the short and long-term closure orders, Mr Humphrey said it was hard to prevent store owners opening in a different location with a different business name.
"We have to evolve and we're looking at ways we can counteract that as well," he said.
SA Police with tobacco seized in the state's south-east last year. (Supplied: SA Police)
Mr Brown said new measures could target "recalcitrant people" who return to offending.
"That's one of the reasons why we're considering ... increases to penalties and other tools, but I'm not really in a position to announce that today, unfortunately," he said.