Illicit tobacco uprooted in joint raids at Nathalia and Katunga

Feb 23, 2023

Raids: The Australian Taxation Office and Victoria Police seized and destroyed illicit tobacco with an estimated excise value of more than $31 million from properties at Nathalia and Katunga last week. Photo by Kelly Leperou

Illicit tobacco, with an estimated excise tax value of more than $31 million, has been destroyed after raids at Nathalia and Katunga.

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The raids by the Australian Taxation Office and Victoria Police were prompted by an anonymous tip-off from a concerned community member.

After searching a property at Nathalia on Tuesday, February 21, officers discovered 15.5ha of illicit tobacco crops.

The excise forgone is estimated at more than $25 million.

@sheppnews The ATO and Victoria Police raided properties north of Shepparton and found more than 40 acres of illicit tobacco plants. #trending #police #raids ♬ original sound - sheppnews

Raids the following day at a property at Katunga, uncovered around 2.4ha of tobacco crops, which have an excise value of more than $6 million.

It has been illegal to grow tobacco in Australia for more than a decade. If convicted, criminals may face up to 10 years’ imprisonment, a fine of at least $412,500, or both.

ATO Assistant Commissioner Jade Hawkins said the operations successfully disrupted the operations of organised criminals.

“Organised criminals utilise small producers and farmers to grow Illicit tobacco to benefit their network. More than 40 acres of mature tobacco plants were detected (in this raid) and represent a significant investment of criminal effort,” Ms Hawkins said.

“Criminals use illicit tobacco as a cash crop to fund other illegal activities.

“Evading excise duty on tobacco costs the community millions of dollars that could be spent on essential community services.”

She said people in the community were among the agency’s best sources of intelligence.

“Their eyes and ears in their own backyards help us to identify and shut down criminal activities,” Ms Hawkins said.

“Peak growing season for illicit tobacco is between November to May. Members of the community that notice unusual farm works, earthworks along creeks or riverbeds and large, leafy plant crops that resemble kale, cabbage, or corn can report it anonymously to the ATO.”

To report that someone is storing illicit tobacco anonymously to the ATO complete the tip-off form at www.ato.gov.au/tipoff or phone 1800 060 062.