Led by the Australian Taxation Office, the operation undertook significant warrant activity with assistance from officers attached to the Murray River PD rural crime team and the proactive crime team from New South Wales police.

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Officers located 9.7 hectares of illicit tobacco crops in Koraleigh, New South Wales, with an estimated excise forgone value of about $42 million. They also seized a picking machine and water pump.

NSW Acting Assistant Commissioner Megan Croaker said the amount found was equivalent to the weight of 13 bulldozers.

"This was a sophisticated, organised operation," she said.

"Organised criminals view the illicit tobacco trade as low-risk and high-reward, but this simply isn't the case. This result showcases the impact of our operations in stopping criminals in their tracks.

"The ATO is primarily focused on targeting the source of the illicit tobacco supply. By stopping illicit tobacco from going from crop to shop, it creates a level playing field for small businesses".

It has been illegal to grow tobacco in Australia for more than a decade. Penalties for growing, selling or possessing illicit tobacco are significant.

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If convicted, criminals may face up to 10 years' imprisonment - up to a $330,000 fine - or both.

The 2019-20 tax gap estimates illicit tobacco cost the Australian community $909 million in lost excise revenue each year, instead being channelled into organised criminal activities.

The ATO will continue to work with our cross-agency partners to ensure that illicit tobacco isn't grown, manufactured or produced, stopping organised criminals from profiting in the process.

If you suspect that illicit tobacco is being grown or manufactured in your community you can confidentially report it anonymously to us by completing the tip-off form, ato.gov.au/tipoff, or phoning 1800 060 062.

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