What often appears to be a legitimate online shopping experience is, in reality, the sophisticated new face of Australia's illicit tobacco market. With dozens of websites openly promoting cheap tobacco and vapes, complete with e-commerce layouts and express delivery options, organised crime networks are now flooding the country with unregulated products.

Our investigation into these clandestine online operations revealed a seamless, albeit illegal, purchasing process. For example, a recent transaction saw a carton of ten packets of illicit tobacco purchased for just $150 – approximately one-third of the price of an equivalent legal product. With an additional $20 for express delivery, the site facilitated payment via direct bank transfer, communicating with the purchaser through WhatsApp to provide an Australia Post tracking number. Within just three business days, the discreetly packaged products arrived, containing the very goods that fuel underworld violence and actively undermine Australia's rigorous tobacco control policies.

The Evolving Battlefield for Enforcement

Amber Shuhyta, Australia's Illicit Tobacco and E-cigarette Commissioner, acknowledges that while physical shopfronts remain a primary outlet for illicit sales, the online realm is rapidly expanding. "We are definitely looking at disrupting websites selling illicit tobacco, along with the Therapeutic Goods Association and the Department of Health," Ms Shuhyta stated, emphasising the need to proactively counter the digital shift as physical storefronts are shut down.

Nowhere has the brutal competition for control of this illicit market been more evident than in Victoria. The state has been scarred by almost 200 arson attacks and six murders linked directly to the trade. Detective Inspector Chris Murray, head of Victoria Police's Arson Squad, made a sobering admission at a recent industry forum on black markets. "We've made over 500 arrests for the tobacco arsons but I've got to be honest with you, I'm not sure that it's made a difference, which is sad... it's not through lack of trying," he revealed. He also highlighted the alarming truth that tobacco now stands on par with drugs as a primary income source for organised crime, noting, "They [organised crime groups] have got bigger budgets than law enforcement agencies, which is just frightening."

Staggering Profits and Border Vulnerabilities

Authorities at both state and federal levels have ramped up enforcement efforts. The Australian Border Force (ABF) reported significant seizures in the 2024/2025 financial year, confiscating over 2.1 kilotons of illicit tobacco and more than 6 million illicit vapes entering the country.

However, former ABF Commissioner Michael Outram, now a consultant in border security, questions the overall effectiveness of current strategies. "Is it having the desired effect in terms of denting the illicit tobacco market?" he pondered, adding, "I would say on current evidence, from what I can see that's publicly available, it's probably not."

Mr. Outram outlined the immense profit margins enticing criminal networks. He estimated that importing 10 million 'cheap white' cigarettes from Asia for around $250,000 could translate to a staggering $7.5 million on the street. He further explained that organised crime groups only need one in ten such containers to successfully pass through border control to turn a substantial profit. "If I lose nine of those containers, the one that gets through is still paying for three times my outcome... so it's a staggering margin," he stated.

This lucrative trade exploits perceived vulnerabilities, with Mr. Outram estimating that the ABF currently X-rays only about 1 percent of all shipping containers arriving on Australian shores. While acknowledging the impossibility of screening 100 percent, he argued for greater investment in modern technology to create 'choke points' and drive up the price of illicit tobacco, suggesting that a lack of such investment has plagued the ABF for years across successive governments.

Commissioner Shuhyta, however, defended the ABF's efforts, citing a substantial increase in seizures and detections over the past year. "If you scanned absolutely everything that came through the Australian border, it would stop the economy. It would reduce productivity. The ABF [is] doing a realistic job in terms of targeting where there is risk so that they get the biggest impact," she affirmed.

A Broader Crime Challenge

Data from the Australian Bureau of Statistics released in June paints a concerning picture: 80 percent of all tobacco and nicotine products consumed in Australia in 2025 were sourced illicitly. Furthermore, nicotine consumption in Australia surged by almost 40 percent between 2017 and 2025.

Commissioner Shuhyta underscored that the issue transcends simple health or border protection concerns. "This is a serious and organised crime issue," she asserted. "There are sophisticated criminal networks exploiting a market opportunity where it is cheap for them to get a product that is highly addictive." The battle against illicit tobacco is, therefore, a multifaceted war against organised crime's growing digital footprint and its destructive impact on communities.