Victoria’s new tobacco licensing scheme will begin next month, aimed at “breaking the business model of organised crime” by disrupting illicit trade.

Licence applications will open in July and 14 inspectors from new regulator Tobacco Licensing Victoria will hit the streets.

People selling illicit tobacco face fines of up to $355,000 or up to 15 years in jail, while businesses face fines of more than $1.7 million.

“This will back the work of Victoria Police, who are coming after crime lords,” Police Minister Anthony Carbines said. “If you are doing the wrong thing and dealing in illegal tobacco, you will get caught and you will face the toughest penalties in Australia.”

The scheme will help protect legitimate businesses from being undercut by organised crime syndicates, he says.

As insuranceNEWS.com.au has reported, firebomb attacks have hit about 100 tobacco stores amid a gangland turf war. Residential strata buildings that also house cigarette and vape shops are struggling to find local insurers willing to offer cover.

Under the crackdown, announced in November, licences will be granted to “fit and proper people”. The regulator can refuse a licence based on a person’s history or known associates, and can cancel a licence and disqualify people from applying.  

Police search powers will be bolstered to make it easier to raid stores and seize illicit products. Inspectors will support police with extra intelligence gathering.

The Taskforce Lunar police operation has seen more than 130 people arrested and more than $37 million of cash, vapes and illegal tobacco products seized.