Victoria is introducing a new tobacco business licensing scheme starting July 1, 2025.

Tobacco retailers and wholesalers will need a licence to sell tobacco products, including cigarettes and cigars. The scheme excludes e-cigarettes and vapes, which are regulated by the Commonwealth government. Public consultation on the scheme's details, such as licence categories and fees, occurred in early 2025. Enforcement will begin in early 2026, requiring all tobacco sellers to have a valid licence. Licences must be renewed annually, and retailers must display them prominently.

The scheme aims to address health risks associated with tobacco, deter unsuitable individuals from selling tobacco, and support law enforcement in combating illicit tobacco trade. Penalties for non-compliance are severe, with fines up to $165,975 or five years in jail for individuals, and up to $829,878 for businesses. The Department of Health will continue to provide tobacco policy guidance and enforce smoke-free areas. This initiative aligns Victoria with other Australian states and introduces some of the toughest penalties in the country.