The NSW Government will today begin consultation on potential offences for landlords who knowingly lease premises to retailers selling illicit tobacco and illegal vapes, as part of broader strengthening of tobacco regulation in NSW. 

The consultation includes engagement with landlord representatives, retailers, health advocates, partner government agencies and other key stakeholders.

The outcomes of the consultation will be reviewed by the Government’s cross-agency NSW Illicit Tobacco Taskforce in the coming months.

This consultation builds on recent reforms that target the illicit tobacco and illegal vaping market, including the Tobacco Legislation (Closure Orders) Amendment Bill 2025, introduced to NSW Parliament on 6 August. These proposed new laws, expected to be debated in September, introduce substantial penalties and new offences, including:

• a new offence for the possessing a commercial quantity 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; and
• new nation-leading offences for falsely claiming to be licensed, resisting seizure, and attempting to retake seized products.

This comes in light of the recent announcement from the NSW Government to establish a new, dedicated enforcement unit to strengthen compliance and enforcement of tobacco and vaping laws across NSW.

The Centre for Regulation and Enforcement in NSW Health comprises a statewide team of 48 full-time equivalent staff, including enforcement officers, policy, and project officers.

These staff will operate across metropolitan, rural, and remote locations to ensure a consistent, calibrated, and effective compliance approach.

The Centre will continue to work closely with the Illicit Tobacco Taskforce to develop options and recommendations to strengthen compliance and enforcement activities in NSW to reduce the availability of illegal tobacco in the community.

From 1 July 2025 – 24 August 2025, NSW Health Inspectors conducted 201 retailer inspections across 12 local health districts, seizing:

• over 28,000 vaping products and 4,300 nicotine pouches with an estimated street value of around $990,000.
• over 2.3 million cigarettes and 365kg of other illicit tobacco products, with an estimated street value of over $2.5 million.

Minister for Health Ryan Park said, “The vast majority of retail landlords do the right thing, there’s no doubt about that.

“But we know there are bad actors out there aiding the proliferation of these outlets pushing illegal tobacco and vapes into our suburbs.

“The feedback I’ve received from small business, landlords and the broader community is that there is a real opportunity to smash illegal tobacconists through the people who knowingly let them trade.

“If there’s something we can do about that, I don’t want to leave a stone unturned.

“This consultation is about getting the balance right.”