Demanding money with menaces (or what might be referred to as blackmail) was an offence under Sections 112-113 of Victoria’s Criminal Law and Practice Statute 1864. Making such demands through writing was especially serious and subject to a sentence of up to 15 years. Demanding property or money by menaces or force in other cases was liable to sentences of up to 3 years.
In the 1920s a number of cases of this kind were prosecuted against members or formers members of Victoria’s police where they had threatened to arrest individuals if not compensated. An example of such a case can be read about here.