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Darren Chester says Gippsland’s 15 suspected illicit tobacco store closures highlight organised crime concerns and calls for tobacco excise reform

Gippsland MP Darren Chester says 15 suspected illicit tobacco store closures highlight organised crime concerns, advocating an 80 percent tobacco excise cut alongside stronger enforcement to combat the black market.

By news@gippsland - 16th October 2026 - Back to News

Federal Member for Gippsland Darren Chester says this week’s closure of 15 suspected illicit tobacco stores in Gippsland highlights the scale of Australia’s illegal tobacco trade and the need to attack the profits flowing to organised crime. Victoria Police and Tobacco Licensing Victoria closed stores in Yarram, Moe, and Newborough under new powers allowing suspected illicit tobacco premises to be shut for 90 days.

Coalition modelling projects its tobacco policy could improve the Federal Budget by $8 billion, while Chester calls for stronger enforcement and reduced criminal profits

Illicit tobacco concerns

Mr Chester said the closures came as the Albanese Government voted against a Coalition amendment in Federal Parliament that sought to cut tobacco excise by 80 percent as part of a broader strategy to undermine the black market. "Smoking cigarettes and vapes is bad for the individual, but outsourcing the tobacco industry to organised crime is bad for society."

"We should continue supporting sensible public health measures to reduce smoking rates, but we also need to recognise that the current settings have created an extraordinarily lucrative black market. This week we have seen suspected illicit tobacco stores closed right here in Gippsland. That demonstrates this isn’t some distant problem confined to Melbourne; the illegal trade is operating in our own communities," Mr Chester said.

Tobacco excise debate

The Australian Bureau of Statistics estimated earlier this year that around 80 percent of tobacco and nicotine products consumed in Australia in 2025 were illicit, while the Parliamentary Budget Office has highlighted the sharp decline in tobacco excise revenue as consumption has shifted towards the illegal market.

Mr Chester said the Coalition supported stronger enforcement measures but did not believe policing alone would be enough to dismantle the criminal trade. "The huge price gap between legal and illegal cigarettes has created an enormous profit margin for organised crime.

When criminals can massively undercut legitimate retailers, rivers of cash will continue flowing into criminal networks. That’s why the Coalition has proposed cutting tobacco excise by 80 percent, to dramatically narrow that price gap and take customers and profits away from the black market," Mr Chester said.

Coalition tobacco policy

The Coalition’s policy would reduce the excise component on a standard packet of 20 cigarettes from around $30 to around $6, with the rate reviewed after two years. It would be backed by a $200 million nationwide law-enforcement surge targeting illegal shops, border seizures, supply chains and the criminal networks profiting from illicit tobacco.

Independent Parliamentary Budget Office modelling commissioned by the Coalition estimates its broader tobacco and nicotine policy package, including the excise reduction, would improve the Federal Budget balance by around $8 billion over the first four years as more sales return to the legal market. "The Government had the opportunity in Parliament to support a different approach and voted against our amendment. I don’t accept that enforcement alone is enough."

"Closing illegal stores, seizing illicit products and prosecuting criminals are all important, and the Coalition supports stronger powers for law-enforcement agencies. But unless we also attack the business model that makes illicit tobacco so profitable, organised crime will continue to have an enormous financial incentive to stay in the market," Mr Chester said.

Pictures from Darren Chester MP website.

Source: http://gippsland.com/

Published by: news@gippsland.com

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• Working together to secure East Gippsland's water future through integrated water management
  East Gippsland CMA and regional partners are collaborating through Integrated Water Management to address climate, flooding, population growth, stormwater, recycled water and wetland protection challenges while planning sustainable projects.
• Community groups encouraged to apply for East Gippsland’s 2026-27 grants program before 14 September 20260 deadline
  East Gippsland community groups can apply for 2026–27 grants supporting community, environmental, social and wellbeing projects, with funding from $3,000 to $20,000 available until September 14, 2026.
• Five additional VLocity train sets to boost Gippsland Line capacity and ease crowding as the Nationals commitment
  The Nationals will add five VLocity train sets to Gippsland services, providing 1,110 extra seats and enabling longer trains during peak periods to ease overcrowding on Traralgon and Bairnsdale services.
• New Heart Morass watering infrastructure strengthens Gippsland Lakes wetland health and protects freshwater flows for future generations
  New watering infrastructure at Heart Morass enables controlled freshwater flows, reducing salinity and supporting wetland health, wildlife habitat and long-term resilience across the Gippsland Lakes.
• The Nationals pledge weekly rubbish collection for Gippsland households to ease costs and improve waste services
  The Nationals have pledged weekly general rubbish collections across Gippsland, promising to review landfill levies and waste charges to reduce costs and ease pressure on families.
• The Nationals call for urgent public housing repairs as 147 Gippsland South properties remain vacant amid growing housing crisis
  The Nationals MP Danny O'Brien is calling for urgent repairs to 147 vacant public housing properties across Gippsland South, saying homes should be occupied amid the region's housing crisis.
• Nationals demand stronger policing as rising Latrobe Valley crime fuels growing community safety concerns and frustration
  The Nationals say rising Latrobe Valley crime and fewer police officers demand urgent Labor government action, calling for stronger policing, tougher laws and better resources to restore community safety.
• Latrobe City Libraries offer free live music celebrating local Gippsland talent from October to December 2026
  Latrobe City Libraries will host free, family-friendly live music from local Gippsland musicians across Morwell, Traralgon and Moe from October to December 2026. No bookings are required; everyone is welcome to attend.
• Mobile Service Centres bringing government support across South Gippsland communities an August and September
  Australian government Mobile Service Centres will visit 12 South Gippsland communities, offering Medicare, Centrelink, myGov and Veterans’ Affairs assistance, with accessible facilities and Wi-Fi.
• Martin Cameron renews call for PSOs at Morwell and Moe Stations, citing rising Gippsland public transport crime figures
  Morwell MP Martin Cameron has renewed calls for PSOs at Morwell and Moe stations, citing a 49 percent increase in Gippsland public transport crime between 2021 and 2024.
• Wellington Shire Council backs West Sale Airport for proposed Gippsland Police Academy training campus
  Wellington Shire Council will advocate for a Gippsland Police Academy at West Sale Airport, citing existing infrastructure, the former TAFE campus, expansion capacity and potential regional jobs, investment and training opportunities.
• Parliamentary inquiry reveals CFA resource shortfalls after years of Labor neglect, leaving Gippsland communities increasingly vulnerable
  A Parliamentary inquiry has highlighted declining CFA volunteer numbers, ageing firefighting vehicles, workforce shortages and poor fuel management, prompting Nationals' Danny O'Brien to demand urgent action to protect Gippsland communities.
• Traralgon Tyers interconnect begins, strengthening water supply reliability and resilience across four Gippsland towns for future regional growth
  Gippsland Water has begun construction on a 4.5-kilometre pipeline linking four towns to Traralgon’s water network, improving reliability, resilience, efficiency and capacity for future regional growth.
• Dental experts warn Labor plan could worsen lengthy public dental waits for vulnerable Gippslanders across regional Victoria
  Dental experts warn Labor's proposed public dental expansion could worsen Gippsland wait times, with vulnerable residents already facing waits exceeding two years in some areas.
• Meet the Makers connects local producers, makers and hospitality businesses across Bass Coast and South Gippsland and other council updates
  Meet the Makers will connect Bass Coast and South Gippsland producers, makers and hospitality businesses for networking, collaboration and new opportunities.
• Councils begin planning for renewable energy growth across Wellington and South Gippsland communities
  Wellington and South Gippsland councils have begun a major renewable energy planning project, backed by $4.7 million, to prepare communities for future growth through housing, infrastructure, employment, services and economic development.
• The Nationals' $5 Better Roads Plan promises pothole repairs and long-term maintenance across neglected Gippsland road network
  The Nationals' $5 billion Better Roads plan would tackle Gippsland's deteriorating roads, repair one million potholes, restore preventative maintenance and establish Better Roads Victoria for improved standards.
• Become a Great Southern rail trail passport collection point with other updates from the South Gippsland Shire Council
  South Gippsland Council seeks Rail Trail Passport collection points, announces a youth bravery award, Toora roadworks, grants, community events, transport updates, tenders, services and opportunities.
• Regional hospitals face staffing and funding pressures as new nurse-to-patient ratios take effect across Gippsland health services
  East Gippsland Shire Council is installing two louvered roofs at Bairnsdale Library, improving shade, weather protection and outdoor activities, with works expected to take two weeks.
• Wellington Shire Council secures $2M for road safety improvements across five Gippsland towns before mid-2027
  Wellington Shire Council has secured $2 million for road safety upgrades across Maffra, Stratford, Sale, Wurruk and Heyfield, with works beginning before Christmas and completion expected by mid-2027.
• Regional hospitals face staffing and funding pressures as new nurse-to-patient ratios take effect across Gippsland health services
  New nurse-to-patient ratios have passed Parliament, with Gippsland hospitals reclassified, but workforce shortages and funding pressures raise concerns over implementation and patient care.
• Heyfield childcare faces closure after losing federal funding, putting local families, educators and essential community services at risk
  Heyfield's only childcare service faces closure after losing $270,000 in federal funding, prompting Darren Chester to seek urgent assistance while a Senate inquiry examines rural and regional child care access.
• Seacombe fire prompts calls for greater fuel reduction, improved firebreaks and stronger emergency access around Loch Sport communities
  The Seacombe fire has prompted calls for increased fuel reduction, improved firebreaks and emergency access, with Loch Sport residents seeking stronger bushfire prevention measures.
• Yarragon weekend escape offers country hospitality, local flavours, shopping and scenic West Gippsland adventures
  Yarragon offers an easy West Gippsland weekend escape from Melbourne, combining boutique shopping, local food and wine, scenic walks, galleries, markets and welcoming country accommodation.
• Melina Bath calls on Labor to protect locally raised foreshore funds and community priorities across Eastern Victoria
  Nationals MP Melina Bath has urged Labor to guarantee $500,000 raised by San Remo residents remains dedicated to local foreshore projects following committee merger concerns.
• Tarwin River partnership launches six projects for catchment restoration and community stewardship across West Gippsland
  West Gippsland CMA has launched Together for the Tarwin, funding six projects over 18 months to restore wetlands, waterways and habitats while strengthening community stewardship across the Tarwin catchment.
• Sale coffee cup campaign spreads strong community message against domestic and family violence across local businesses
  Sale's Rotary Club has launched a coffee cup awareness campaign against domestic and family violence, with MPs Darren Chester and Danny O'Brien urging businesses and residents to support the initiative.
• Melina Bath announces $53.6M boost to patient travel assistance for regional Victorians under Nationals-Liberal government
  Melina Bath says a proposed $53.6 million boost to Victoria’s patient transport assistance would increase accommodation and travel reimbursements, easing healthcare costs for regional patients travelling long distances for specialist treatment.
• Melina Bath honours Colin "Stocky" Stockdale for 63 years of outstanding CFA service to South Gippsland community
  Melina Bath congratulated Colin "Stocky" Stockdale on receiving the CFA's highest honour, recognising his 63 years of leadership, mentorship and dedicated service protecting South Gippsland communities.
• The Nationals unveil $40M plan offering health workers incentives to fill critical regional jobs across Gippsland and Victoria
  The Nationals propose $40 million over four years for a Victorian Rural Health Workforce Incentive Scheme, offering eligible regional health workers up to $10,000 for relocation, accommodation and professional development.
• Carran Carran restoration project strengthens river health, habitat connectivity and flood resilience across West Gippsland
  West Gippsland CMA's long-term Carran Carran restoration project is improving river health, reducing flood-related avulsion risks, restoring habitat connectivity, controlling willows and supporting native fish, agriculture and communities.
• Latrobe City Council will push six reforms addressing regional investment, housing, infrastructure, funding fairness and sustainability at MAV State Council
  Latrobe City Council will take six reform proposals to the MAV State Council, targeting fairer funding, housing, planning, investment, infrastructure and support for regional communities.
• New Bairnsdale worker accommodation nears completion, boosting healthcare workforce capacity across East Gippsland communities
  Bairnsdale new 28-apartment healthcare worker accommodation is nearing completion, providing affordable housing for up to 32 staff and strengthening regional health services while supporting local jobs and investment.
• Latrobe Mayor slams government's community safety funding decision, demands urgent support despite region's higher crime and social harm rates
  Latrobe Mayor Sharon Gibson has criticised the Victorian government for again excluding Latrobe from Community Connectors funding, despite higher crime, family violence and drug-related harm rates than funded metropolitan municipalities.
• The Nationals criticise deteriorating Princes Highway as potholes raise safety concerns in Traralgon East
  The Nationals have criticised the deteriorating Princes Highway at Traralgon East, citing 85 potholes between Traralgon and Rosedale and road damage less than 18 months after duplication.
• Matthew Canavan welcomes Commonwealth Bank branch extension, calls for stronger government action to protect regional banking services
  Nationals leader Matt Canavan welcomed Commonwealth Bank’s decision to keep 281 regional branches open until 2030, while urging the Government to protect banking access and rebuild services lost elsewhere.
• Metung mother Lily Martyn establishes foundation supporting neurodivergent children, young people and families across Gippsland
  Metung mother Lily Martyn has launched Do It For Foundation Gippsland, supporting neurodivergent children, young people and families. The foundation has connected 95 East Gippsland families seeking support, understanding and practical solutions.