Victoria is becoming a “lawless state” as independent retailers are facing an unprecedented escalation in organised crime activity, the MGA Independent Businesses Australia warns.

The retail group voiced its concerns after the violent ram raid on the Friendly Grocer store in Longwarry. Criminal enterprises, funded through an illicit tobacco market, are now attempting to extort safety payments from small family-run businesses, the group warned.

“What had started as theft and then progressed to armed robbery has now dramatically escalated into violent extortion,” said MGA CEO Martin Stirling. 

“Retailers are now being forced by criminal gangs to pay a ‘safety tax’ or sell illicit tobacco products under threat of violence. Victoria is rapidly slipping into a lawless state. Families, workers, and communities are being put at risk every day.”

MGA is urging various measures to deal with the situation, including practical safety regulations, resources and dedicated task forces to support vulnerable SMEs and shut down all extortion attempts and threats of violence.

The group also calls for acknowledgement that the illicit tobacco trade is funding organised crime and practical measures to shut it down. This will require authorities’ powers to close illicit tobacco premises and other measures being implemented in other states.

“This is no longer just a retail crime issue – it is a community safety emergency. The government must act immediately to disempower and dismantle these criminal networks,” said Stirling.

“The status quo isn’t working – we need urgent, coordinated action now to protect family businesses, safeguard communities, and restore law and order,” he added.

Recent data from the Victorian government’s Crime Statistics Agency showed that retail crime offences in the state rose 20 per cent for the year ended June, the highest it has been in a decade.