The Melbourne tobacco wars are an ongoing series of violent criminal incidents centered on turf wars between organised crime groups over control of the illegal tobacco trade in Melbourne, Victoria, Australia. The conflict has been marked by firebombings, extortion, and shootings. As of early 2025, Victoria Police report over 125 arson attacks and more than 100 arrests.
The illegal tobacco trade in Australia is highly lucrative due to high taxation on legal tobacco. Organised crime groups have increasingly turned to this trade, leading to violent competition over territory and market control.
A 2023 investigation by The Age reported that some gangs were importing illegal cigarettes via container ports or manufacturing them locally. Illicit tobacco is sold through otherwise legitimate-looking stores, often owned or operated by front companies. A packet of cigarettes costing up to $50 in taxes when sold legally might be sold for as little as $15 under the counter.[5]
The retail turf war intensified after new Commonwealth laws increased penalties and enforcement powers related to illicit tobacco in mid-2023.[6]
Conflict
Criminal syndicates have been targeting rival tobacco shops and convenience stores suspected of selling illicit tobacco. The attacks include petrol bombings, arson, and extortion attempts. Taskforce Lunar, established by Victoria Police, is investigating the conflict.
Over 100 people have been arrested in connection with the conflict as of March 2025.[3]
Casualties and damages
A number of injuries and deaths have occurred in relation to the attacks. In January 2025, a 51-year-old man was critically injured during an attempted arson attack on The Golden Lounge dessert bar in Prahran, reportedly setting himself alight in the process.[7] Also that month, 27-year-old Katie Tangey was killed in a house fire in Truganina, believed to have been a mistaken identity case tied to the conflict.[2]
Victoria Police have confirmed over 100 properties have been targeted, primarily tobacco retailers and convenience stores across Melbourne and regional Victoria.[4]
In Coburg, a fire destroyed part of a convenience store and caused collateral damage to an adjacent nightclub, including $15,000 worth of DJ equipment.[8]
In Fawkner, an arson attack on a smoke shop resulted in heavy damage to neighboring businesses, including a family-owned cake shop.[9]
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