SA government says crackdown is leading to illicit tobacco price increase

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."

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.

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.

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.