The new legislation is part of the NSW Government's continued crackdown on the
illegal tobacco and vaping trade, strengthening enforcement powers and introducing
significant new penalties for offenders across the supply chain.
Under the new offence, landlords who know their tenant is selling illicit tobacco or
illegal vaping goods and knowingly allow the activity to continue without taking
reasonable steps to report the conduct or terminate the lease face a maximum penalty
of one year imprisonment, a fine of up to $165,000, or both.
Mr Dwyer said the reforms send a clear message that everyone involved in facilitating
the illicit trade will be held accountable.
"The illegal tobacco and vaping market undermines legitimate businesses, exposes
our communities to organised crime, and puts harmful products within easier reach of
young people. Our area is not immune to this issue with a number of reports of illegal
selling of these products from local premises,” Mr Dwyer said.
"These new laws ensure landlords cannot simply turn a blind eye if they know illegal
activity is taking place on their premises. If you knowingly allow it to continue, there will
be serious consequences."
The reforms also introduce:
- a new offence for possessing a commercial quantity of illicit tobacco, carrying a maximum penalty of more than $1.5 million, seven years' imprisonment, or both
- increased penalties for the sale of illicit tobacco, with a maximum penalty of more than $1.5 million, seven years' imprisonment, or both
- short-term closure orders of up to 90 days and long-term closure orders of up to 12 months for premises selling illicit tobacco, illegal vaping goods, or tobacco and non-tobacco smoking products without a licence
- new offences and penalties for breaching closure orders, including entering closed premises or continuing to trade from them
- new powers allowing landlords to terminate leases where a closure order has been issued
- nation-leading offences for falsely claiming to be licensed, resisting the seizure of illicit products, and attempting to recover seized goods.
As of 26 June 2026, NSW Health had issued 321 short-term closure orders since 3
November 2025, with 162 currently in force.
Mr Dwyer said authorities were continuing to adapt to the tactics used by illegal
operators, including the use of QR codes and social media to facilitate sales after
closure orders have been imposed.
"NSW Health and NSW Police are working closely together to identify these tactics and
ensure those attempting to evade the law are brought to account," Mr Dwyer said.
"These reforms strengthen our ability to disrupt illegal operators, protect legitimate
retailers and improve the health and safety of communities across New South Wales."
Members of the public who suspect a retailer is selling illicit tobacco or illegal vaping
products are encouraged to lodge a complaint through the NSW Health reporting
portal.
