Why convenience stores along Fremantle cafe strip are the front line of WA's illegal tobacco trade

Retail along Fremantle's famous "cappuccino strip" has long been a volatile market, but amid growing financial insecurity for brick-and-mortar shops, the convenience store reigns supreme.

Each convenience-type shop in Perth's port city is virtually a carbon copy of the other.

Shelves are scarcely stocked with chocolate bars and chewing gum — it's the merchandise under the counter that is really paying the rent.

Convenience seems like an understatement when Fremantle offers dozens of these stores, hiding the thriving illicit tobacco trade in plain sight.

So how did illegal tobacco take over what was once an attractive cafe and restaurant strip?

Why won't police shut them down? 

Put simply, there is no major deterrence for the crimes and it is not just an issue for Fremantle. These stores have plagued suburbs and towns across Western Australia.

Under the current laws in WA, government officials, including police, do not have the power to immediately shut them down.

The Australian Council on Smoking and Health (ACOSH) has been calling for the laws to be updated for several years.

"There are other jurisdictions like South Australia and Queensland who have the political will within their states to update these laws," ACOSH chief executive Laura Hunter, said.

"This isn't a tax problem, this is an enforcement problem, and the illegal tobacco trade is thriving because of outdated state laws in WA."

Who is responsible? 

WA's health department is responsible for issuing fines for the distribution of illegal tobacco through undertaking compliance, monitoring and carrying out investigations.

It is therefore the responsibility of the health minister, Meredith Hammat, to introduce the laws to parliament.

When questioned on the issue at press conferences, Ms Hammat failed to offer any details on what the legislation will look like or when it will be ready.

"When it's ready we will introduce it, this is an important issue for our government," Ms Hammat said at a press conference.

"The new laws that we introduce will quite likely be subject to challenge and we want to make sure that they withstand that and that they're rigorous."

A state government spokesperson said they were in the process of strengthening the tobacco legislation, which it claimed would be the toughest in the country.

The statement said in almost two years, WA Health had seized almost one million cigarettes and nearly 160 kilograms of loose tobacco.

To put that into perspective, the Australian Federal Police seized more than four million cigarettes and almost 900kg of loose tobacco in just one bust allegedly involving two Perth brothers in October.

At the time, police alleged the illicit sale of those products would have meant the brothers dodged about $8 million in taxes.

On a nation-wide scale, the trade has blown a massive hole in the federal government's revenue with tobacco excise revenue collapsing from a peak of $16 billion in 2019 to $7.4 billion this year. 

Meanwhile, legitimate retailers like Coles and Woolworths have lost more than 50 per cent of tobacco revenue in the past year, paving the way for the industry to be taken over by crooks.

What can the City of Fremantle do? 

The changing landscape of Fremantle's cappuccino strip is not lost on the local council.

"Our community is really concerned about the number of them [convenience stores]," City of Fremantle Mayor Ben Lawver said.

"Right now, a convenience shop in Fremantle is just an allowed use, they don't even come to us for approval.

"If we could change that to have them be a discretionary use in our scheme, then we'll actually be able to decide whether or not we want to see those kinds of shops open."

In lieu of state government action, Mr Lawver has put forward a notice in motion to make those changes at a local level.

"We've seen places in Fremantle raided, then open for business the next day. So those are things that have to come from the state," he said.

In the meantime, it will be up to health authorities to crack down on these illegal traders with limited resources.