The legislation will see NSW bring in some of the toughest penalties in the country for the sale and commercial possession of illicit tobacco and will grant substantial powers for inspectors to close premises found to be in breach of the new rules.
The amendments form part of the NSW Government’s commitment to protecting the community from the harms of tobacco and vapes, and will include, among other things:
• A new offence for the commercial possession of illicit tobacco with a maximum penalty of over $1.5M and 7 years’ imprisonment.
• New penalties for the sale of illicit tobacco with a maximum penalty of over $1.5M and 7 years’ imprisonment.
• The introduction of short-term (up to 90 days) and long-term (up to 12 months) closure orders for premises selling illicit tobacco, illegal vaping goods, or selling tobacco without a licence.
• New offences and penalties for anyone who breaches these closure orders, including for entering closed premises or selling products from closed premises.
• Lease termination powers for landlords where a closure order is in place.
• New nation-leading offences for falsely claiming to be licensed; resisting seizure; and attempting to retake seized products.
In addition to the tough new measures in the new legislation, the NSW Government will also commence a targeted consultation on a new offence for landlords who knowingly lease their premises to illicit tobacco and vape suppliers.
These new penalties and offences will complement the tobacco licensing scheme which came into effect from July 1, 2025. The scheme ensures accurate information is collected on tobacco retailing and wholesaling activities in NSW to support enforcement efforts, deter tobacco retailing businesses from operating outside of the law and provide greater oversight of the tobacco retail industry.
If an applicant has been found guilty of an offence relating to the sale or supply of tobacco or vaping goods, they could be refused a licence to sell these products.
From January 1 2025 to June 30 2025, NSW Health conducted over 700 retailer inspections and seized -
- More than 90,000 nicotine vapes, e-liquids and pouches with an estimated street value around $2.9M;
- More than 6 million cigarettes and 1,100 kg of other illicit tobacco products with an estimated street value of around $6.8M; and
- Issued around 150 penalty notices, totalling around $316,000.
The NSW Government has established a cross-agency NSW Illicit Tobacco Taskforce, with senior representatives from NSW Health, NSW Police, the Department of Customer Service, the Department of Creative Industries, Tourism, Hospitality and Sport, and the Department of Communities and Justice.
The Taskforce has developed options and recommendations for the NSW Government to strengthen compliance and enforcement activities in NSW to reduce the availability of illegal tobacco in the community.
Minister for Health, Ryan Parks said: “These will be among the toughest penalties in the country and will send a clear message to bad actors that selling illegal tobacco and vaping goods will not be tolerated in NSW. We are disrupting the business model of the large-scale criminals who profit from addiction, tax evasion, and putting young people at risk.
“This isn’t just a serious health issue, it’s about fairness, because these illegal operators are undercutting small businesses that are doing the right thing.
“I know many landlords have also expressed their concerns about illegal tobacco operations occurring on their premises. These new powers will give them certainty and the opportunity to terminate leases where there is a closure order in place."
