A multi-agency taskforce will be set up to target rising levels of crime associated with illegal tobacco.
The Illicit Tobacco National Disruption Group will be headed up by the Australian Border Force and will be made up of representatives from federal, state and territory police agencies as well as government departments.
Home Affairs Minister Tony Burke said a unified approach was needed as organised criminals involved in black-market tobacco were also linked to a range of other crimes.
"The same criminal groups are involved in organised tobacco, you'll have some of them involved in forms of arson, you'll have some of them involved in the drug trade," he told ABC's Insiders program on Sunday .
"If there's a cohesion of threats and a convergence of threats, there needs to be a convergence of protection in responding."
The disruption group will be set up using part of the almost $190 million provided to the Australian Border Force to crack down on illegal tobacco.
The demand for illegal tobacco has exploded following large tax increases on legal products, leading to a rise in the black market.
Mr Burke said the disruption group would target mid-level criminals who either import, distribute or sell illegal tobacco.
It would also focus on illegal tobacco sold directly to smokers.
"We also need to look at what happens before it reaches the border, what happens post-border, what happens at the warehouse level, and what happens in terms of the flow of funds for these organisations as well," he said.
"Everything we can do to attack those networks helps with the full range of issues."
Other organisations involved in the disruption group include financial crimes agency AUSTRAC, the Home Affairs department, the Australian Criminal Intelligence Commission as well as agencies such as the ATO and Services Australia.
"Our message is clear: if you profit from illicit tobacco in Australia, you are operating illegally, and you will be the target of the Illicit Tobacco National Disruption Group," Mr Burke said.
