Victoria Police and Tobacco Licensing Victoria have shut four retail businesses in Gippsland as part of a crackdown on suspected illicit tobacco sales. The action represents the first closures of this kind in regional Victoria under new powers introduced to target the illegal tobacco trade.

Officers from Victoria Police's Viper Taskforce worked alongside Tobacco Licensing Victoria during raids conducted on Monday, 12 October. The operations resulted in temporary closures of three stores across Moe and Newborough in the Latrobe Valley, and one business in Yarram.

In Yarram, a homewares and gift shop was raided and temporarily closed. Authorities placed yellow closure notices on the premises, informing the public that the businesses could not reopen during the specified closure period without appropriate authorisation.

The enforcement action follows changes that came into effect on 9 September 2026. Under the new powers, authorities can inspect businesses suspected of selling illicit tobacco and issue temporary closure notices lasting up to 90 days. Officials can also seek longer-term closure orders through the Magistrates' Court. Bree Oliver, chief operating officer of Tobacco Licensing Victoria, said investigators had selected the Latrobe Valley after receiving information suggesting the area had a substantial illicit tobacco supply. Authorities assessed intelligence and prioritised locations where enforcement action was expected to have the greatest impact.

Oliver said inspections and enforcement operations would continue across Victoria. Officials also warned that businesses attempting to reopen in breach of closure notices could face further action. Illicit tobacco is sold outside the regulated taxation and licensing system. Such products can undercut legitimate retailers and deprive governments of tobacco excise revenue. Authorities have also raised concerns about links between illegal tobacco distribution and organised crime.

The price difference can be substantial. The report noted that illegally sold cigarettes may cost around $20 per packet, compared with approximately $50 for legal cigarettes. The actual price can vary according to the product and retailer.

The new enforcement powers are intended to give regulators a faster way to disrupt suspected illegal retail operations while investigations continue. Temporary closure notices prevent access to the premises except where an exemption applies, allowing authorities to investigate without the business continuing normal operations.

The Gippsland raids form part of a wider statewide effort. More than 60 stores had been closed under the broader enforcement campaign by the time of the report, although the four Gippsland businesses were the first such closures in country Victoria outside Melbourne and Geelong.

Authorities have indicated that further inspections are planned. The closures are based on suspicions of illegal tobacco sales and should not be treated as proof that every business or individual involved has been convicted of an offence. Any criminal allegations must be established through the appropriate legal process. The operation signals an expansion of enforcement into regional communities as Victoria attempts to restrict illicit tobacco distribution and strengthen compliance with tobacco laws.