illicit tobacco

ATO seizes and destroys $4.4 million worth of illicit tobacco

The Australian Taxation Office (ATO), with support from Victoria Police, has seized and destroyed more than 20 tonnes of illicit tobacco from a property north-east of Shepparton, Victoria.

The raid, conducted on Thursday 5 June under Operation Ocean, uncovered a mature crop spanning nearly six acres, roughly the size of 90 tennis courts. Several trays of tobacco seedlings were also seized. The estimated excise value of the illicit tobacco is $4.4 million.

Jade Hawkins, Assistant Commissioner at the ATO, said the results reflect the agency’s ongoing crackdown on illegal tobacco operations.

“Detecting, disrupting and dismantling the illicit tobacco trade is a priority for the ATO.

“These operations are run by criminal syndicates, not farmers or producers. They put the Australian community at risk when they use profits from these activities to fund other serious crimes.”

“Involvement in illicit tobacco production is a serious offence. There are hefty penalties for possessing, selling, buying, manufacturing, or producing illicit tobacco, including jail terms for up to 10 years imprisonment.

“This type of activity takes vital money away from the community and places it directly into the hands of organised criminals who mistakenly think they can sail under the radar.”

The operation was initiated following a community tip-off, one of the ATO’s most effective sources of intelligence.

“A wave of illicit tobacco has been stopped in its tracks, with this warrant activity surfacing thanks to a tip-off from the community,” Hawkins said.

Operation Ocean adds to the 90 illicit tobacco operations carried out between 1 July 2018 and 30 June 2024.

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