The November 2024 Tobacco Amendment (Tobacco Retailer and Wholesaler Licensing Scheme) Act 2024 (the Amendment Act), which gives effect to the implementation of a regulatory and licensing framework for tobacco suppliers in Victoria, came into effect from 1 July 2025.
The Amendment Act amends the Tobacco Act 1987 (the Act) to provides the framework for existing and new business operators to obtain licences for the sale of tobacco, and otherwise to prohibit the retail and wholesale of tobacco products without a licence.
Relevantly, any hospitality venues that sell tobacco products as part of their offering (including via vending machines) will need to apply for and obtain a licence under the Act.
What are the new licensing laws?
The licensing framework in the Act bears many similarities to the licensing framework adopted by Victoria under the Liquor Control Reform Act 1998 (LCRA) for the regulation and licensing of the supply of liquor.
Similarities include:
- Separate licences are required for each premises where tobacco is sold;
- There are assessments of suitability to hold a licence – including referrals to Victoria Police;
- The establishment of licensing inspectors with powers of entry to licensed tobacco premises; and
- The ability to seek an internal review of decisions, and a further right to review at VCAT.
There are, however, some key differences:
- Suitability of licence holders may be re-assessed each year on renewal of a licence. Under the LCRA, licence renewal is only an administrative formality. However, the Amendment Act empowers the regulator to request information and to consider whether the licensee continues to be suitable to hold the licence.
- The Amendment Act contains provisions whereby the regulator or a court can ‘disqualify’ persons for up to 5 years from being involved in tobacco businesses.
- The regulator may suspend a licence with immediate effect for up to 90 days where there are reasonable grounds to believe that certain offences have been committed (principally, supply of illicit tobacco).
The scheme therefore appears to have much stricter controls and broader powers conferred on the regulator.
When does the licensing scheme come into force?
The licensing scheme is in effect from 1 July 2025, at which point the Amendment Act (other than the divisions relating to licensing offences) comes into effect. Licences can now be applied for, but operators will not be committing an offence if licences are not in place yet.
The offences provisions of the Amendment Act will come into place no later than 1 July 2026.
Previously it was announced that the enforcement activities would commence on 1 July 2026, but recent announcements have brought that date forward to 1 February 2026.
Who will need a licence?
The Amendment Act creates a new offence for a person to ‘sell a tobacco product… unless the person holds a licence authorising the sale’.
The Amendment Act also amends the existing section 13 of the Act which allows for vending machines to be placed on licensed premises – such that it would become an offence to have a vending machine on premises that do not hold a tobacco licence – but otherwise must meet the same existing requirements for line of sight from a bar.
All premises where retail tobacco products are sold will require a licence. Further, all licensed premises with vending machines on premises will require a licence to continue retail sales.
How to Apply?
Applications for licences are now open via the Service Victoria portal.
There are two categories of licence:
- Retail licence: For businesses where there are sales of tobacco products to members of the public, including from vending machines or online.
- Wholesale licence: For businesses that sell tobacco products to any other retail or wholesale business.
Businesses that sell both retail and wholesale tobacco will need to apply for both licence types.
What should I do?
If you sell tobacco as part of your business or have a tobacco vending machine on your premises then you should promptly contact our office for advice regarding the licensing requirements and application process.
This update does not constitute legal advice and should not be relied upon as such. It is intended only to provide a summary and general overview on matters of interest and it is not intended to be comprehensive. You should seek legal or other professional advice before acting or relying on any of the content.
