By Timothy S. Donahue
Top Takeaways:
- Counterfeit Packs: Illegal cigarettes now replicate Australia’s plain packaging and health warnings.
- Organized Crime: Criminal syndicates are manufacturing counterfeit products on an industrial scale in Southeast Asia.
- New Powers: Proposed legislation would make illicit tobacco easier to prosecute and target criminal profits.
Australia’s tobacco criminals have realized that even plain packaging is worth copying.
Criminal syndicates operating primarily in Cambodia are manufacturing counterfeit cigarettes in packaging that replicates Australia’s mandatory plain packs, complete with health warnings. Intelligence provided to the federal government indicates that the products are being produced on an industrial scale, making illegal cigarettes increasingly difficult to distinguish from legitimate products.
“Serious and organised criminal syndicates have weaponised the cheap oversupply of tobacco globally and will do anything to make a buck,” Assistant Minister for Customs Julian Hill said. “The crooks will continue to adapt their tactics.”
The revelations come as Australia’s Senate prepares to debate Thursday legislation that would expand enforcement powers against illicit tobacco importers, distributors and retailers. The proposed amendments would allow authorities to use evidence such as suspiciously low prices, concealed products and packaging violations to establish that tobacco entered the country illegally.
The bill would also strengthen authorities’ ability to pursue criminal proceeds. It passed the House of Representatives earlier this week.
“This highlights the urgency of equipping state, territory and commonwealth authorities with these new powers to go after anyone involved in the illegal tobacco trade, including the supply chains and retail outlets,” Hill said.
Australian authorities have been working with Southeast Asian governments to disrupt offshore manufacturing. Cambodian authorities have destroyed about 1,200 tons of counterfeit cigarettes this year and seized related production materials, according to ABC News.
Domestic enforcement is also intensifying. During inspections on Oct. 6–7, New South Wales authorities seized approximately 420,000 illegal cigarettes, 60 kilograms of loose tobacco, and thousands of illicit vaping products. Last week, police closed 10 tobacco retailers across the state, including eight in southwestern Sydney.
The latest legislation follows Australia’s Combatting Illicit Tobacco Act 2026, which received royal assent on Aug. 26 and expanded penalties and investigative powers to target organized tobacco crime.
Hill has characterized the trade as a broader criminal threat rather than merely a tax enforcement problem. “This Government’s focus is simple: shut down illegal shops, cut off the money, and make this trade unprofitable,” he said when the earlier legislation was introduced.
South Australia is also moving to toughen penalties for illicit tobacco sales, introducing legislation Oct. 13 that would impose prison sentences of up to 17 years and fines reaching A$21 million ($14 million). The proposed changes would also allow authorities to close offending retail shops for 130 days and give landlords greater power to terminate leases involving illegal tobacco sales.
“For the first time, people caught selling illicit tobacco will face long stints in prison for their involvement in this illegal trade,” Consumer and Business Affairs Minister Michael Brown said. “Our message is absolutely clear. Illicit tobacco is not welcome in South Australia.”
The legislation would also expand seizure powers, increase penalties for landlords who knowingly permit illegal sales and restrict ATMs at offending retailers. The measures build on South Australia’s existing enforcement program, including its A$16 million Illicit Tobacco Taskforce.
