From 1 July 2025, the Victorian Government will introduce one of the toughest tobacco licensing schemes in the country. This new legislation mandates that all tobacco retailers and wholesalers must apply for a licence to sell tobacco products in Victoria. The scheme applies to cigarettes, cigars, and other tobacco products intended for human consumption. E-cigarettes and vapes remain regulated by the Commonwealth Government
Why This Matters
The new licensing framework is designed to:
- Address the public health risks associated with tobacco use.
- Deter unsuitable individuals and criminal networks from participating in the tobacco trade.
- Support law enforcement efforts to combat the illicit tobacco market.
This initiative aims to protect legitimate businesses from being undercut by illegal operators and to ensure that only compliant, licensed vendors remain in the market
Penalties for Non-Compliance
The penalties for operating without a licence or selling illicit tobacco are severe:
- Individuals: Up to $165,975 in fines or five years imprisonment.
- Corporations: Up to $829,878 in fines.
- Breaching licence conditions: Up to $11,855 for individuals and $58,277 for corporations.
- Selling illicit tobacco: Up to $355,000 in fines or 15 years imprisonment for individuals, and over $1.7 million for businesses 1.
Timeline and Key Dates
- November 2024: Legislation passed to amend the Tobacco Act 1987.
- March–April 2025: Public consultation on draft regulations.
- 3 June 2025: Regulations finalised.
- 1 July 2025: Licence applications open.
- 1 February 2026: Enforcement begins. All businesses must be licensed by this date 1.
VDMS Support and Industry Readiness
VDMS has been actively assisting our retail partners in preparing for the implementation of the Public Health (Tobacco and Other Products) Act 2023 and its accompanying Regulations 2024, which come into full effect on 1 July 2025. As part of this support, we’ve rolled out over 1,500 software updates to help stores update their planograms and point-of-sale systems in line with the new requirements.
This is a specific callout to our Victorian retailers: if your business sells tobacco products, you must apply for a tobacco business licence starting 1 July 2025. Don’t wait—ensure your store is ready and compliant ahead of the enforcement date in February 2026.
We’ve also distributed Department of Health-approved point-of-sale posters to assist retailers in communicating these changes to customers. These materials are available for download on the VDMS website and the Department of Health site
Final Call to Action
If you haven’t started your compliance preparations, now is the time. The window is closing fast, and enforcement will be strict. VDMS will continue to provide weekly updates and support leading up to the deadline.
For more information contact the relevant state Government or for other assistance, contact us at service@vdms.com.au or visit www.vdms.com.au.