Quit Victoria and Cancer Council Victoria have congratulated the Future Fund for its decision to remove all tobacco-related investments from its portfolio.
Quit Victoria Executive Director Fiona Sharkie said any financial gain to the tobacco industry represented more deaths and ill-health to the Australian community.
"This is a fantastic decision that will ensure that future investment decisions by the Future Fund are consistent with Australia's public health objectives," she said.
"Almost every Australian would know someone who has been affected by the devastating harms of smoking and those people would not want to be unwilling or inadvertent investors in tobacco.
"We hope the Victorian government's investment management organisation, the Victorian Funds Management Corporation, will consider taking similar action."
Cancer Council Victoria Chief Executive Officer Todd Harper said the decision was another financial blow for the tobacco industry, which spent considerable sums in an unsuccessful attempt to overturn Australia's world-first plain packaging laws.
"This decision will withdraw more than $230 million of taxpayer funds from an industry that has aggressively undermined tobacco control strategies for decades worldwide and is responsible for the deaths of more than 15,000 Australians a year."