No Smoke Without Fire: Landlord Liability under Incoming Victorian Tobacco Laws
The Victorian Government introduced a new regulatory scheme to prevent and monitor the illicit sale of tobacco across Victoria. Tobacco retailers are now required to obtain and annually renew their tobacco retail license from Tobacco Licensing Victoria (TLV). Failure to do so attracts significant penalties such as closure notices, fines and imprisonment.
Although these penalties are currently aimed at illegal tobacco retailers, the Consumer Legislation Amendment Bill 2026 (Vic) (the Bill) seeks to hold landlords criminally responsible for leasing their retail premises to unauthorised tobacco shops.
Landlord criminal liability
The Bill proposes to introduce a new criminal offence for landlords who, without reasonable excuse, knowingly allow another person:
who carries on a tobacco supply business at the premises to have any illicit tobacco in the other person's possession or under the other person's control at the premises; or
to use the premises to sell or otherwise supply illicit tobacco.
Importantly, this offence captures landlords of retail leases, subleases, agreements for lease, agreements for sublease and licenses. Different penalties apply with natural persons being subject to 600 penalty units and body corporates being subject to 3000 penalty units – that is, fines of approximately $125,000 and $600,000 respectively.
Termination of lease
Despite this onerous obligation placed on landlords, the new laws will empower landlords to terminate their lease where the premises is subject to a long-term closure order – that is, a court-ordered closure extending beyond the standard 90-day period. The tenant must be given at least 28 days’ written notice prior to any termination under this proposed provision.
Importantly, any finding that a long-term closure order is cancelled or invalid will not affect the landlord’s prior termination of the lease.
Conclusion
The implementation of the Bill is imminent – it has passed both houses in the Victorian Parliament, only requiring royal assent before becoming law.
If you would like advice ahead of these changes, please contact our Property Law team.
Vittoria De Stefano
Principal
M 0407 091 301 | T 03 5226 8520
E vdestefano@ha.legal
Prepared with the assistance of Angelina Hogan-Fox, Law Graduate
