Do I Need a Licence to Sell Tobacco in Australia? 

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Table of Contents

• An Overview of Licensing Requirements
• Key Legal Requirements for Selling Tobacco
• Importing Tobacco from Overseas
• Key Takeaways
• Frequently Asked Questions

Tobacco retail in Australia is a highly regulated industry. Regulation is largely driven by the aim of reducing smoking prevalence in society. Regulations apply at both the federal and state levels and different states and territories have different licensing requirements. Therefore, if you are planning on selling tobacco products in Australia, you should:

• consider which states or territories will be your target markets;
• understand where you will need a licence in order to sell your products; and
• take into consideration other federal requirements for importing your products from overseas and advertising them in Australia. 

An Overview of Licensing Requirements

Each state and territory regulates the sale of tobacco products separately. Broadly speaking, you will need to either:

• apply for a licence to sell tobacco products; or
• formally notify your state or territory’s government of your intention to sell tobacco products. 

The below table sets out a summary of the licensing requirements for selling tobacco products across Australia’s states and territories. 

Key Legal Requirements for Selling Tobacco

It should be clear by now that you will need to thoroughly review the legislation and regulations within the states and territories where you wish to sell your tobacco products. However, there are several key issues you should keep in mind, no matter where you are in Australia. These are:

• advertising (the Tobacco Advertising Prohibition Act 1992 prohibits positive advertising of tobacco or smoking products, or advertising that is designed to entice customers); 
• packaging (the Tobacco Plain Packaging Act 2011 regulates that tobacco products must be sold in plain packaging, free from logos or brands. Graphic health warnings are also required under the Competition and Consumer (Tobacco) Information Standard 2011); and
• age limits (it is illegal to sell tobacco products to people under the age of 18 years). 

Importing Tobacco from Overseas

If you are planning to import your products from overseas to then sell through your own business in Australia, you may need to apply to the Australian Border Force for a permit. Make sure you apply before your products enter Australia to avoid any detention of your products, or in some circumstances, having your products confiscated along with heavy penalties. You will be considered to have imported tobacco products even if you did not order or ask for them to be sent to you. You will also be considered an importer if you purchased, ordered or arranged someone to bring or send to you tobacco products from overseas. 

What Taxes Do I Need to Pay?

Imported products are subject to duty and Goods and Services Tax (GST) on arrival in Australia. Ensure you stay up to date with current duty rates, regulated by the Customs Tariff Act 1995. 

Do I Need a Permit for All Types of Tobacco Products?

Not all tobacco products require a permit for importation. Products that do require a permit include:

• cigarettes;
• shisha/molasses tobacco; 
• loose-leaf tobacco; and
• ‘heat-not-burn’ tobacco products. 

Products that do not require a permit include:

• cigars; and
• chewing tobacco under 1.5kg.

Key Takeaways

Health initiatives to decrease smoking uptake have resulted in the tobacco industry becoming heavily regulated. Whether you will require a licence to sell tobacco products in Australia will depend upon the state or territory in which you would like to sell your products. You must also ensure you are also compliant with federal legislation and regulations concerning packaging, advertising and importing. You may require a permit if you will be importing your tobacco products from overseas first. For help navigating these regulations to make sure you are complying with all requirements necessary for selling tobacco products, contact LegalVision’s regulatory lawyers on 1300 544 755 or fill out the form on this page.

Frequently Asked Questions