The NSW Government's tough new laws to crack down on the sale of illicit tobacco and illegal vaping goods will be introduced to parliament today, with new penalties announced for retailers selling without a license.
The NSW Government announced last week it would 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 Government will also unveil new penalties for selling tobacco without a licence. This will now carry a maximum penalty of $660,000 for an individual or $880,000 for a corporation.
The amendments form part of the NSW Government's commitment to protecting the community from the harms of tobacco and vapes, and will also include:
- a new offence for the commercial possession of illicit tobacco with a maximum penalty of over $1.5 million and 7 years' imprisonment
- new penalties for the sale of illicit tobacco with a maximum penalty of over $1.5 million 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
- new 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.
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 1 July 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 1 January 2025 to 30 June 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 $2.9 million
- more than 6 million cigarettes and 1,100 kg of other illicit tobacco products with an estimated street value of around $6.8 million
- 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.
Quotes attributable to Minister for Health, Ryan Park:
"Today we are introducing our tough new illegal tobacco and vaping laws into parliament, which will be among the toughest penalties in the country.
"These new laws will give us the power to shut down these illicit tobacco and vape stores and disrupt this criminal business model.
"These reforms will send a clear message to anyone selling illegal tobacco or vaping products, which is: get rid of these products or they will be seized, your store will be closed and you will be prosecuted to the full extent of the law.
"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."
