Technical Paper 2:
Tobacco Control in Australia: making smoking history

3.1.7 Producers and purveyors

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Almost all adult smokers regret that they ever started.[262] Dependence on tobacco-delivered nicotine appears to develop very rapidly in teenagers,[263-267] and exposure of the developing adolescent brain to nicotine may result in long-lasting deficits in cognitive functioning.[268] People who take up smoking as teenagers tend to become heavier smokers and are less likely to give up,[269] and they are more likely to develop diseases caused by smoking.[270, 271] Under these circumstances, it is unacceptable for anyone under any circumstance to sell cigarettes without checking for proof of age.

Licensing of retailers

Additional research since 2004

Tobacco retail outlets are highly concentrated in lower socio-economic areas.[272] A Californian study has found a higher prevalence of smoking among students in schools with a higher density of retail outlets, even after adjusting for neighbourhood demographics.[273] Retailers in lower SES areas in the US appear to be more likely to sell cigarettes to minors than retailers in higher SES areas.[274-276] Reductions in the availability of tobacco products are associated with lower levels of smoking.[277]

Progress against international comparators

Most states in the US and many provinces in Canada require licensing of tobacco retailers.

A detailed report commissioned by the Australian Government in 2002[278] concluded that licensing of retailers was the most effective way of informing tobacco retailers and wholesalers of their legal obligations, and of ensuring that authorities had the information necessary to enforce tobacco control laws. Licensing would give ‘teeth’ to bans on selling tobacco products to under 18s, and other laws relating to tobacco sales, such as those governing point of sale displays and tobacco advertising. Linking a retailer’s tobacco licence to compliance with tobacco control measures gives authorities the ability to suspend or withdraw the right to sell tobacco products in the event of a breach. In Tasmania, for example, sales of tobacco products to children are immediately prosecuted, and any second offence is punishable by the imposition of a $10,000 fine and licence cancellation.²⁸

The report stated that a best practice scheme would incorporate features including a positive licensing approach, where prior approval was required and compliance with minimum conditions needed to be demonstrated before sales could commence; licences applicable to each particular retail venue rather than each operation; and a graduated penalty structure, including warnings, administrative penalties, prosecutions and scope for licence withdrawal.²⁹

As at 1 June 2008, positive retailer licensing schemes were in place in the ACT,³⁰ the Northern Territory,³¹ South Australia,³² Western Australia³³ and Tasmania,³⁴ and a similar scheme had been proposed for New South Wales.³⁵


Action proposed
Governments in Victoria and Queensland to amend legislation in line with that in other states to require all retailers of tobacco products to hold a licence

Licensing of manufacturers

Additional research since 2004

In 2005 tobacco companies would have received revenue from the sales of cigarettes from children exceeding $15 million (over $9 million would have been received by retailers and $46 million by governments).[109]

Progress in Australia

Tobacco manufacturers in Australia are presently licensed by the Australian Tax Office, under the Excise Act 1901 (Cth). A decision whether or not to grant or suspend a licence must take account whether the applicant or licence holder satisfies certain statutory ‘fit and proper’ criteria. These criteria include whether the company has been convicted of a Commonwealth or state or territory offence punishable by a fine of 50 penalty units or more. Tobacco control legislation contains many offences in this category, although prosecutions and convictions for breaches are very rare and the excise laws require only that criminal convictions be taken into account.


Action proposed
When assessing whether a company is ‘fit and proper’ to hold a licence to manufacture tobacco products in Australia, take into account a tobacco manufacturer’s complete record of compliance with relevant tobacco control laws (not just criminal offences).

If an agency is created specifically to regulate tobacco products (as per Section I 6. above), the responsibility for the licensing of manufacturers could be transferred to that agency.
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²⁸See Tasmanian Health and Human Services Agency website, www.dhhs.tas.gov.au/agency/pro/tobacco/salestochildren.php, visited on 23 May 2006. See also Division 3, Public Health Act 1997 (Tas).
²⁹Precedents include laws governing civil liability claims, and the National Classification Scheme for films, computer games and certain publications.
³⁰Tobacco Act 1927 (ACT), s. 63.
³¹Tobacco Control Act (NT), s. 28.
³²Tobacco Products Regulation Act 1997 (SA), s. 6.
³³Tobacco Products Control Act 2006 (WA), s.16,
³⁴Public Health Act 1997 (Tas), s. 74A.
³⁵See at p12 of paper at www.health.nsw.gov.au/pubs/2008/pdf/protecting_children_from_tobacco.pdf.

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