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Fourteen businesses across regional South Australia have been ordered to close following a major crackdown on illegal tobacco, with authorities seizing more than $430,000 worth of cigarettes, vapes and other prohibited products.
The latest operation comes as the State Government pushes ahead with proposed laws that could see illegal tobacco dealers jailed for up to 17 years and hit with penalties reaching a staggering $21 million.
Dubbed Operation Shutdown, the coordinated raids targeted more than 14 stores across the Mid North and Yorke Peninsula last week, resulting in 14 closure orders. Businesses in Kapunda, Greenock, Peterborough, Port Augusta, Port Pirie, Risdon Park, Wallaroo, Moonta and Kadina were caught up in the operation.
Authorities confiscated a range of products, including illegal cigarettes, filled cigarette tubes, loose tobacco, vapes and nicotine pouches.
And the latest seizures are just a fraction of what’s been uncovered across South Australia.
Since the State Government introduced 28-day closure powers in June 2025, more than 400 closure orders have been issued, with 22 stores currently shut.
The State Government’s Illicit Tobacco Taskforce, working alongside SA Police and other enforcement agencies, has now seized more than $66 million worth of illegal products.
The crackdown has also reached Adelaide’s CBD, where a store named Smoke Hut on Hindley Street was ordered to close on October 28. Investigations into its operations are continuing.
However, the government is looking to go much further.
Under legislation currently before Parliament, the maximum financial penalty for supplying or possessing large commercial quantities of illicit tobacco would increase from $6.6 million to $21 million. Businesses could also face closure orders lasting up to 130 days, a significant jump from the existing 28-day powers.
Landlords would be brought into the crackdown too, with new provisions allowing them to terminate leases when certain closure orders are imposed. Those who knowingly allow their properties to be used for illegal tobacco operations could face substantial fines, with repeat offenders potentially facing imprisonment.
The proposed changes would also ban ATMs from businesses found selling prohibited products or supplying tobacco without the appropriate licence, targeting the cash transactions associated with the illegal trade.
Minister Michael Brown said the government was determined to disrupt an industry believed to have significant links to organised crime.
“Operation Shutdown is closing stores across the state at the same time as the government is proposing long stints in prison for those caught selling illegal tobacco with 75 per cent of the illicit tobacco trade believed to be controlled by organised crime.”
Consumer and Business Services Commissioner Brett Humphrey said stronger penalties were needed to discourage businesses from continuing to sell illegal products.
“While the 28-day closure orders have been an effective tool, it’s clear that stronger deterrents are necessary if we’re going to effectively tackle this problem.”
South Australia’s approach has received national recognition, with the Australian Council on Smoking & Health awarding the state an A grade for its response to illicit tobacco for two consecutive years.
For now, Operation Shutdown represents another major blow to the illegal tobacco trade, with authorities signalling that further enforcement action remains a priority.
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