Important tobacco licensing changes impacting Victorian tenants: Key details

New regulations have come into effect in Victoria that will impact retail tenants that sell tobacco.

As of 1 July 2025, the Victorian Government has introduced a mandatory licensing scheme for all businesses that sell tobacco products – whether retail or wholesale. This includes sales through shops, supermarkets, petrol stations, convenience stores, tobacconists, liquor outlets, vending machines, and online platforms.

Key points for retail landlords:

• All tenants who sell tobacco are now required to apply for a Tobacco Retail and/or Wholesale Licence from the new regulator, Tobacco Licensing Victoria (TLV).
• Applications opened 1 July 2025. From 1 February 2026, it will be an offence to sell tobacco products without a licence. Accordingly, applications should be made as soon as possible to ensure a licence is granted during the grace period.
• Each physical premises requires a separate licence (although multiple locations can be included in one application). If a tenant sells both retail and wholesale, they will need two licences.
• Licences issued during the 2025-26 financial year will be valid until 30 June 2027. From that point, licences need to be renewed by 30 June each year.
• Licences can be varied e.g. a licence may be transferred to a new owner upon business sale or relocated if the tenant moves premises.
• Licensees have ongoing disclosure obligations to TLV. For example, any changes to the corporate structure of the licensee must be disclosed within 14 days of the change occurring.

Why this matters to you:

As a retail landlord, you have a vested interest in ensuring tenants are compliant with their legal obligations. Non-compliance can result in:

• Significant fines and criminal penalties for tenants (e.g. over $800,000 for selling tobacco without a licence).
• Disruption to tenancy operations (e.g. forced cessation of sales).
• Potential reputational or compliance risks to the property if illegal activity occurs onsite.

We recommend the following actions:

1. Identify tenants who currently sell tobacco products.
2. Notify them of the new licensing requirement, if they are not already aware.
3. Encourage early compliance by directing them to apply.

For more information or to access the application portal, visit: https://www.vic.gov.au/apply-tobacco-licence

Please don’t hesitate to reach out if you would like assistance with tenant communications or reviewing your lease terms in light of this update. We can also assist tenants with the application process.

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Authored by:
Lui Scipioni, Partner
Alexandra Walker, Partner
Michael Mercier, Partner
Maria Anenoglou, Special Counsel