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Victorian businesses could soon be slugged up to $1500 a year to sell tobacco, 9News can reveal.
In the latest bid to stem the turf war, every shop wanting to sell smokes will soon need a licence, with Health Minister Mary-Anne Thomas saying work is under way to develop them.
The new licences won't come cheap, with the government proposing application and yearly renewal fees of between $1100 and $1490 per shop, and the industry is not impressed.
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"We don't support the government with their proposed fee range," Australian Association of Convenience Stores chief executive Theo Foukkare told 9News.
"We'd be suggesting around $500, which is where it's at in Queensland."
Every other state and territory already has a licensing scheme, with Victoria the last and the priciest to create one.
Only Tasmania comes close, where it costs $1340 for a tobacco licence, followed by NSW, where it's $1100.
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Other states and territories are vastly cheaper, including the ACT ($638), Queensland ($474), South Australia ($340), Western Australia ($278), and the Northern Territory ($282).
"The cost of doing business over the last three years has exploded and the last thing we need is a very high licence fee," Foukkare said.
The Victorian government admits online that it may "disproportionately impact smaller businesses", but believes the impact will "be relatively small because businesses should be able to pass on the cost through the sale of tobacco and other products".
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"My concern around the fees are they're very high," Shadow Minister for Consumer Affairs Tim McCurdy said.
"People will pay the cost, Victorians will pay the cost."
There are concerns too that high licence fees may spark a bigger crisis by potentially encouraging retailers to operate in the blackmarket, Foukkare said.
Businesses have got around a month to make their case for a lower price before the new fees are then set in May's budget.
The licensing scheme will then start on July 1, though no one will be checking them until the middle of next year.
"They've been slow pulling this together, we passed the legislation last year," McCurdy said. "It needs to come a bit quicker than that."
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