The ACT is facing pressure to crack down on illegal tobacco by creating powers to rapidly close down retailers and increase on-the-spot fines, which are 20 times smaller than Queensland's.
A group of about a dozen long-standing professionals has outlined a plan of action to the ACT government, calling for an audit of tobacco licence holders, tighter licensing rules, regular compliance operations and higher fines.
The group also called for more powers to shut down shops selling illegal tobacco and for landlords to kick out tenants caught selling the banned products.
The Canberra Times asked the ACT government whether it was considering increasing maximum fines, rapid closure powers, landlord penalties and protections, a standing monitoring and compliance program, and tighter rules for tobacco sales licences.
The government was actively working on additional changes to tackle illicit tobacco trade and strengthen community protections, a government spokesman said.
"The ACT government is working closely with the Australian government and jurisdictions to strengthen the regulatory frameworks which apply to illicit tobacco products and ensure our regulators have effective powers to address the possession and sale of illicit tobacco," the spokesman said.
In April, the Australian Council on Smoking and Health ranked the ACT second last of the Australian states and territories for its actions against illegal tobacco.
"The ACT talks a good game but isn't playing one. Without stronger penalties, closure orders, and landlord protections and penalties, it'll be stuck near the bottom," the non-government organisation said.
In the same month, half a million cigarettes and about 26 kilograms of loose tobacco were seized in raids that targeted six Canberra shops.
The Canberra Times has also detailed how easy it is for customers to buy illegal cigarettes in the capital, with retailers happy to open secret drawers and offer goods at "dirt cheap" prices.
The Legislative Assembly passed updated tobacco laws in December 2025, which introduced a $1600 on-the-spot fine for individuals selling illegal tobacco and new protections for officers sent to inspect retailers. Corporations face an $8000 fine.
But Queensland raised its fines from $3200 to $32,260 for individuals and corporations can be fined $161,000 in the state for selling illegal tobacco.
In NSW, the maximum penalty for selling or possessing a commercial quantity of illegal tobacco is seven years in prison, a fine of $1.54 million, or both.
The ACT opposition supported the legislation but said it did not go far enough.
"We support what is going on here today, but it does need to be more. It is a baby step, and I am assuming that it is not going to have a great impact on what is going on out there in the suburbs," Opposition Leader Mark Parton said.
The then health minister, Rachel Stephen-Smith, said at the time there was no standard response the territory had failed to deliver.
"Indeed, a number of these jurisdictions have started significantly behind the ACT in terms of the existing tobacco licensing regime that we had in the ACT, some of them having no existing tobacco retailer licensing requirements until this year," Ms Stephen-Smith said on December 3, 2025.
"I look forward to working with members of this Assembly in the development of additional changes to ensure a considered and balanced approach regarding the supply of tobacco and vaping products."
The federal government has introduced a bill to parliament that would make it easier to seize illegal tobacco and use cheap cigarettes as evidence to prosecute business owners.
Claire Miles, who intends to run again as an independent for the federal seat of Canberra at the next election, warned without action, the ACT risked becoming a safe haven for illegal tobacco.
"We need to pay attention to what is happening in other states with the link between illicit tobacco and organised crime, and the increase of fire bombings, extortion and intimidation," Ms Miles said.
"The ACT should implement regular compliance operations, meaningful penalties, the ability to permanently close premises selling illegal tobacco. If we fail to do so, we risk becoming a safe haven for this trade, simply because we are not keeping pace with other jurisdictions."
Ms Miles also said she was concerned at the number of licensed tobacco retailers in Canberra.
"For decades, Australia has led the way in reducing smoking rates having invested millions in public health campaigns, we introduced plain packaging and graphic health warnings and then went further by making tobacco products disappear behind the counter in supermarkets. We have worked hard to make smoking less accessible, less visible and less socially acceptable," she said.
"It feels like a contradiction to now allow retailers to open up in every suburb, making tobacco more accessible than ever before."
Police Minister Marisa Paterson in May said there had not been an increase in organised crime presence in the territory as a result of growth in illegal tobacco sales, unlike other states.
"We have incredibly dedicated organised crime teams in ACT Policing, and our criminal asset confiscation team, which do fantastic work. Illicit tobacco falls under their remit. As of the last briefing that I have received, there has not been an increase in this activity in the ACT," Dr Paterson said in question time on May 5.
The ACT has the lowest smoking rate in Australia, with Australian Institute of Health and Welfare figures showing 5.1 per cent of adults reported smoking daily in the territory in 2022-23. Nationally, 8.3 per cent of adults reported daily smoking.
