Black market adapts after Qld's illicit tobacco and vape shop crackdown

The black market for illicit tobacco and vaping products has surged in the past 10 years. (ABC News: Thomas Edwards/File) Laws introduced in Queensland last year seem to have reduced visible illicit tobacco and vape sales, but many sellers have shifted online. Convenience stores say some customers briefly returned to legal cigarettes before moving back to the cheaper black market. There are calls for the tobacco excise to be cut, but health experts say stronger enforcement is the better long-term solution. Link copiedShareShare articleLast year, you could walk into one of several tobacconists in a busy Gold Coast shopping precinct and buy a vape or a carton of illicit cigarettes over the counter. But in November, these tobacconists, along with about 150 other shops, were given three-month shutdown orders during a statewide crackdown by Queensland Health. Public health researchers say Queensland's laws have resulted in a "very notable decrease" in such retailers selling illicit tobacco and vapes. But the convenience store sector, which has seen demand for legal cigarettes fall sharply, warns the black market has been adapting beyond the shop front. Retailers on the Gold Coast had previously openly advertised the sale of vapes. (ABC Gold Coast: Dominic Cansdale) Queensland Health has issued 275 closure orders since November last year, with about 40 per cent of retailers subsequently evicted. Landlords who knowingly lease their properties to tenants supplying illicit tobacco and vapes can face a maximum penalty of $161,300 and one year in jail. Research fellow at the University of Queensland's School of Public Health, Cheneal Puljevic, said there has been a "marked difference" in the availability of illicit tobacco or vapes. Boxes of suspected illicit tobacco and vapes were seized from stores in Bundaberg in November last year. (ABC News: Johanna Marie) "For a long time, there was virtually no penalty associated with selling these products," she said. "You could very brazenly sell illicit tobacco and vapes without any kind of consequence and just make an awful amount of profit." Dr Puljevic's team has been monitoring the sale of illicit products for three years and has noted retailers have moved online in recent months. "We're seeing retailers giving out details to trusted customers to say, 'Phone this number and someone will home deliver the products to you or join this WhatsApp group'," she said. "But to go from being able to buy these products in every suburb at every tobacconist, to needing to call someone to arrange for them to deliver, it's a lot harder and a lot of people are hesitant to buy online." A spokesperson for Queensland Health said it was aware retailers were changing business tactics. "[We] will continue to work closely with partner agencies to monitor and target these operators," the spokesperson said. "We are also considering options to pursue court action, including 12-month closures, on several matters where investigations are ongoing." Australian Association of Convenience Stores chief executive Theo Foukkare said sales of legal tobacco products tended to improve after illicit retailers were shut down. But he said after about six weeks, customers "flow back" to online sales or other businesses moving into the illicit trade. Paper flyers signposted around Burleigh Heads late last year advertised the delivery of illicit vapes. (ABC Gold Coast: Julia Andre) "We've heard of hairdressers, butchers. We've had people selling these from their houses with signs out the front. I've even had reports of a tyre shop," Mr Foukkare said. A December 2025 report from the Illicit Tobacco and E-cigarette Commissioner estimated about half of all tobacco sales and 96 per cent of vape sales were illegal. "Legal tobacco used to contribute around 40 per cent of total in-store shop sales, excluding fuel," Mr Foukkare said. "That number now is down across the whole country at around 18 per cent and in many instances, it's now below 10 per cent." Theo Foukkare says tobacco sales in convenience stores are declining. (ABC News: Glenn Mullane) But Mr Foukkare said the rising tobacco excise had created "prohibition by price", with illicit cigarettes up to five times cheaper than legal ones. That has tempted some legitimate stores to move into the illicit market, with four EzyMart convenience shops shut over alleged sales of illegal tobacco and vapes in Sydney last week. "Our view is the federal government needs to reduce excise by 50 per cent, which would make a legal packet around $25 in comparison to, on average, around $15 [for illicit]" Mr Foukkare said. Tobacco taxes raised about $16 billion in 2020 but have been forecast to fall to $2.1 billion by June 2030. But the federal government has repeatedly ruled out cuts to the tobacco excise. Various websites advertise a variety of different flavoured vapes that can be delivered via post. (ABC Gold Coast: Emily Dobson) Dr Puljevic sa

Black market adapts after Qld's illicit tobacco and vape shop crackdown

Key takeaways

More in international