The Victorian Government recently introduced the Consumer Legislation Amendment Bill 2026, which proposes amendments to the Estate Agents Act 1980, Owners Corporations Act 2006, Residential Tenancies Act 1997 and various other pieces of legislation.
Of particular significance are the proposed changes to the Tobacco Act 1987, which introduce extensive enforcement powers and substantial penalties for those involved in the sale of illicit tobacco. The reforms are similar to measures already adopted in other Australian states.
Key features of the proposed legislation include:
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Tobacco Licensing Victoria and Victoria Police will be able to issue closure notices to businesses for up to 90 days.
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Authorities may apply to the Magistrates’ Court for longer-term closure orders where reasonable grounds exist.
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Landlords may be entitled to terminate leases where a long-term closure order has been issued.
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Individual landlords who knowingly permit the sale of illicit tobacco may face fines of up to $122,000.
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Retailers operating from closed premises may face fines of up to $2.4 million and imprisonment of up to 20 years.
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Authorities will have the power to seize and destroy illicit tobacco found on site.
A copy of the Bill can be accessed here:
https://www.legislation.vic.gov.au/bills/consumer-legislation-amendment-bill-2026
Actions for Landlords to Consider
Given the significant penalties proposed under the legislation, landlords should take proactive steps to ensure their tenants remain compliant. We recommend considering the following:
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Verify that any tobacco retailer tenant is appropriately licensed. Tobacco sellers were required to register by 1 February 2026 and can be checked via the public register maintained by Tobacco Licensing Victoria: Tobacco Licensing Victoria | vic.gov.au
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Provide tenants with a copy of the proposed legislation and ensure they understand their obligations.
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Conduct regular property inspections to ensure illicit tobacco products are not being sold from the premises.
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Be prepared to report any suspected illicit tobacco activity to the relevant authorities.
