More than 250,000 kilograms of illicit tobacco has been found and destroyed in southern New South Wales.
Australian Tax Office (ATO) assistant commissioner Megan Croaker said 9.7 hectares of the crop, weighing the equivalent of 13 bulldozers, had been seized at Koraleigh.
"This was a sophisticated, organised operation," she said.
The tax office said it estimated the government would have missed out on $42 million in excise if it had made its way to smokers.
Officers also seized a picking machine and water pump from the property.
It has been illegal to grow tobacco in Australia for more than a decade.
Excise revenue lost by black market
In 2019-20, it was estimated illicit tobacco costs the community $909 million in lost excise revenue each year.
If convicted, people can be jailed for 10 years, receive a fine of up to $330,000 or both.
The ATO said it would work with agency partners to ensure illicit tobacco was not grown, manufactured or produced, and to stop organised criminals from profiting in the process.
"By stopping illicit tobacco from going from crop to show, it creates a level playing field for small businesses," she said.
Anyone that suspects illicit tobacco is being grown or manufactured in their community can report it anonymously to the ATO via ato.gov.au/tipoff or 1800 060 062.
