Victorian businesses are facing the prospect of hefty annual fees of up to $1,500 in order to sell tobacco products, as the government seeks to implement a licensing scheme. Health Minister Mary-Anne Thomas has confirmed that work is in progress to develop these licenses, which will require all retailers wishing to sell tobacco to obtain one. The proposed fees, which range from $1,100 to $1,490, have drawn criticism from industry representatives.
According to Theo Foukkare, the chief executive of the Australian Association of Convenience Stores, these fees are excessive, suggesting instead a cost of around $500, which aligns with current fees in Queensland. Victoria would be the last Australian state to introduce a licensing system for tobacco sales, and it would also feature the highest fees; Tasmania’s rate is $1,340, while New South Wales charges $1,100.
In contrast, many other states have far lower fees: the ACT charges $638, Queensland $474, South Australia $340, Western Australia $278, and the Northern Territory $282. Businesses are already feeling the strain of rising operational costs, and Foukkare expressed concern that such high licensing fees could exacerbate the financial pressure on retailers.
The Victorian government acknowledges that the new fees may have a disproportionate effect on smaller businesses but believes that retailers can offset these costs through the sale of tobacco and related products. However, concerns have been raised that these increases could inadvertently push some retailers towards the black market. Shadow Minister for Consumer Affairs, Tim McCurdy, has also voiced his apprehensions regarding the high fees, noting that consumers will ultimately bear the brunt of these costs.
Retailers have around a month to submit their feedback regarding the proposed fees before they are finalised in the May budget. The licensing scheme is scheduled to launch on July 1, although enforcement won’t commence until mid-next year. Critics highlight that the implementation of such a scheme has been sluggish, with legislation passed last year, and call for a more expedited approach.
As the debate continues, it remains to be seen how these licensing fees will impact the tobacco retail landscape and whether they will spur further developments in the illegal tobacco market.