IRGC’s Australian Operations Expose Crime-Terror Nexus, Fuel Calls for Policy Change
Australia’s national security landscape has been significantly altered by the revelation of Iran’s Islamic Revolutionary Guard Corps (IRGC) involvement in antisemitic attacks on Australian soil. Beyond the immediate security concerns, the incidents have illuminated a troubling nexus between organized crime and terrorism, particularly concerning the financing of illicit activities through the lucrative Australian tobacco black market. This discovery has prompted a strong response from the Australian government, including the expulsion of Iranian diplomats and the designation of the IRGC as a terrorist organization, but experts suggest further policy adjustments are needed to address the root causes of this emerging threat.
IRGC-Linked Attacks and Government Response
In August 2025, Australian Security Intelligence Organization (ASIO) Director-General Mike Burgess publicly attributed at least two antisemitic attacks to the IRGC 1. The attacks included a firebombing of the Lewis Continental Kitchen in Sydney in October 2024, coordinated by Sayed Mohammad Moosawi, a former leader of the Nomads motorcycle gang, and a firebombing of the Adass Israel Synagogue in Melbourne in December 2024, causing over $20 million in damages 2.
In response, the Australian government expelled the Iranian ambassador and suspended operations at its embassy in Tehran 4. The government passed the Criminal Code Amendment (State Sponsors of Terrorism) Act 2025, officially listing the IRGC as a terrorist organization 4. This designation is expected to enhance information sharing with the Five Eyes intelligence alliance and provide a legal framework for prosecuting IRGC-affiliated activities.
The Crime-Terror Nexus and Illicit Tobacco
The IRGC’s alleged use of proxies to carry out these attacks highlights a broader concern: the growing convergence of organized crime and terrorism. ASIO’s assessment points to a “crime-terror nexus,” where terrorist organizations leverage criminal networks for financial support and operational capabilities 1.
Australia’s illicit tobacco market, estimated at $10 billion annually, has emerged as a significant facilitator of terrorist financing 3. Driven by high excise taxes – reaching A$40 (US$26) for a pack of 20 cigarettes as of September 2025 – the black market provides a lucrative funding source for both domestic criminal groups and international terrorist organizations. The Australia Criminal Intelligence Commission (ACIC) has identified the illicit tobacco market as a substantial financier to offshore terrorist groups 3.
Links to Previous Criminal Activity
Investigations have revealed connections between the recent attacks and previous criminal activity linked to Kazem “Kaz” Hamad, an illicit tobacco kingpin deported from Australia to Iraq in 2023 3. Hamad was allegedly involved in approximately 150 arson attacks targeting tobacco shops in Melbourne. A blue Volkswagen Golf, allegedly used in the Adass Israel synagogue firebombing and a separate shooting in Bundoora, was likewise linked to an arson attack on the Lux nightclub in November 2024 3. Authorities suspect the IRGC may have benefited from Hamad’s illicit tobacco trade, utilizing his criminal network to carry out attacks while maintaining plausible deniability.
Broader Implications and Future Strategies
The IRGC’s tactics in Australia mirror its broader strategy of employing asymmetrical warfare and leveraging criminal networks to achieve its objectives, as evidenced by a previously thwarted plot to attack targets in Sri Lanka and the United States in 2024 1.
While the Australian government has taken decisive action by expelling diplomats and designating the IRGC as a terrorist organization, experts suggest that addressing the underlying economic factors driving the illicit tobacco market is crucial. Potential policy options include temporarily freezing increases in tobacco excise taxes to allow for deliberation on viable solutions and implementing comprehensive anti-tobacco education programs to reduce demand for illegal products.
combating the crime-terror nexus requires a holistic approach that combines robust law enforcement efforts, international cooperation, and strategic policy adjustments. By addressing the financial incentives that fuel illicit activities and reducing the demand for illegal goods, Australia can strengthen its national security and mitigate the risk of future terrorist attacks.