Businesses involved in the supply chain should prepare for significant regulatory changes, following a key development in the progress of the Customs and Other Legislation Amendment (Illicit Tobacco Enforcement Modernisation and Other Measures) Bill 2026 (Tobacco Enforcement Bill).
On 17 September 2026, the Tobacco Enforcement Bill was referred by the Senate to the Legal and Constitutional Affairs Committee (the Committee) for inquiry and report by 8 October 2026. The Committee has now completed its review of the Tobacco Enforcement Bill and recommended that it be passed without amendment.
While supporting the Tobacco Enforcement Bill, the Committee acknowledged concerns raised by several industry stakeholders regarding the proposed reforms, including the International Forwarders & Customs Brokers Association of Australia (IFCBAA). Submitters highlighted the increasing regulatory burden and rising compliance costs facing lawful participants in the supply chain. Concerns were also expressed about potential liability exposure under the proposed legislative framework and the impact the changes may have on businesses and individuals operating within the supply chain.
Importantly, the Committee noted these concerns and urged the Department of Home Affairs and the Australian Border Force (ABF) to work closely with affected stakeholders to ensure industry is adequately prepared for the changes. This includes providing education, guidance materials and practical support to assist businesses in understanding and meeting their obligations under the new regime.
What happens next?
With the Committee’s review now complete, attention will turn to the passage of the Tobacco Enforcement Bill through Parliament and the announcement of a commencement date.
For businesses operating in the international supply chain, the next critical step will be understanding how the new requirements will be implemented in practice. While the detail of the anticipated guidance material is yet to be released, industry participants should expect further information from the Department of Home Affairs and the ABF regarding compliance expectations, operational requirements and enforcement arrangements.
What should businesses do now to prepare
The Committee’s recommendation provides a strong indication that the proposed reforms are moving closer to implementation. However, many practical questions remain unanswered until government agencies release detailed guidance and education materials.
Businesses affected by the proposed reforms should begin reviewing their current compliance arrangements and governance frameworks in anticipation of the new legislative requirements.
Areas likely to warrant particular attention include:
- licensing and authorisation requirements;
- supply chain controls and record-keeping practices;
- internal compliance and reporting procedures;
- employee training and awareness programs; and
- risk management processes relating to potential liability under the new regime.
We encourage affected businesses to closely monitor developments and begin considering the potential impact of the reforms on their operations.
We will continue to monitor the progress of the Tobacco Enforcement Bill and provide updates as further details become available, including guidance issued by the Department of Home Affairs and the ABF and confirmation of the commencement date. We will be working with IFCBAA to deliver guidance to those in the supply chain who will be affected, particularly licensed customs brokers, freight forwarders and operators of Warehouses and Bonds licensed by the ABF. The changes are significant and impose significant additional obligations on those in the supply chain.
Contact us
For assistance in assessing how the proposed reforms may affect your business, please contact a member of our Customs & Trade team.
Further information:
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