What is illicit tobacco?
Illicit tobacco is tobacco that has been grown/manufactured in Australia without an appropriate excise licence (even if it is for personal use) or has been imported from another country without paying customs duty.
Illicit tobacco products include:
- Roughly processed, unbranded tobacco sold in plastic bags either loose or rolled up into cigarettes (known as “chop-chop”)
- Contraband cigarettes produced by legitimate manufacturers, but which have not been subject to appropriate taxation
- Counterfeit cigarettes which are made to look like those produced by registered manufacturers.
The Australian Government has laws and enforcement measures in place to reduce the illicit tobacco trade. People who manufacture, import, supply or possess illicit tobacco may face substantial fines and, in serious cases, imprisonment.
Source: Adapted from the Australian Government Department of Health and Aged Care website (2025) and Australian Taxation Office website (2026).