South Australia is continuing to lead the nation in its crackdown on the illicit tobacco trade with more than $430,000 worth of illicit product seized in raids across the state, as the South Australian Government’s tough new penalties are considered in Parliament.
Last week, the Illicit Tobacco Taskforce raided more than 14 stores across South Australia as part of Operation Shutdown.
It issued 14 closure orders and seized more than $430,000 worth of product including cigarettes, filled tube cigarettes, loose tobacco, vapes and nicotine pouches.
Operation Shutdown targeted illicit outlets in the state’s mid North and Yorke Peninsula last week and covered a vast area closing stores in Kapunda, Greenock, Peterborough, Port Augusta, Port Pirie, Risdon Park, Wallaroo, Moonta and Kadina.
The South Australia Government has been relentless in efforts to curb the illicit tobacco trade with the government’s dedicated taskforce within Consumer and Business Services working closely with SA Police’s Operation Eclipse as well as other state and federal agencies and more than $66 million worth of products seized overall.
More than 400 closure orders have been issued since the government’s 28-day closure powers took effect in June 2025 with 22 stores currently closed.
This includes the brazenly named Smoke Hut on Hindley Street in the CBD, which was closed on October 28, with investigations continuing into the store’s operations.
This action comes as the South Australian Government’s bill to introduce the toughest penalties of any state or territory in Australia for selling illicit tobacco are considered by Parliament.
For the first time in South Australia, illicit tobacco dealers will face jail time of up to 17 years, under the proposed laws.
South Australia already has the highest penalties in the nation for the supply and possession of large commercial quantities of illicit tobacco products and these penalties are set to significantly increase from $6.6 million to up to $21 million - more than ten times higher than the penalties in many other jurisdictions.
The Illicit Tobacco Taskforce within Consumer and Business Services will also gain the power to issue medium-term closure orders of 130 days – the longest in the nation – in addition to 28 days (short-term) and 7 days (interim). The long-term closure order will remain at 12 months via the Magistrates Court.
In addition, expiations will be expanded and reach up to $175,000 (up from $20,000) for offences related to the supply and possession of commercial quantities of illicit products.
Under the Retail and Commercial Leases Act 1995, landlords will also be able to terminate the lease when a short-term, medium-term or long-term closure order is in place, where previously they could only terminate the lease of those subjected to long-term closure orders.
Landlords will face a one-year term of imprisonment for a second or subsequent conviction of knowingly causing or permitting their premises to be used for illicit conduct. They will also be expected to take reasonable steps to prevent the conduct, such as reporting the conduct to an Authorised Officer or will face fines ranging from $175,000 to $350,000.
In addition, ATMs will be banned from any retailer found to be selling or supplying prohibited products, or tobacco products without the appropriate licence, as cash-based transactions are increasingly used in illicit tobacco and e-cigarette transactions.
South Australia was the first state to introduce closure orders and tougher penalties for those caught selling illicit tobacco and our approach has been recognised as among the best in the nation by the Australian Council on Smoking & Health.
Two years in a row they have awarded SA an ‘A’ grade and in 2026 said we were ‘way out ahead’ of other states on their National Illicit Tobacco Ladder – a state-by-state ranking on how each state or territory government is performing to address illicit tobacco in their jurisdiction.
