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July 14, 2026

Up to 7 years’ jail for unlicenced tobacco sellers in NSW

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The NSW Government says it will introduce tough new laws to crackdown on the sale of illicit tobacco and illegal vaping goods across the state.

The legislation, if passed, will bring some of the toughest penalties in the country to NSW for the sale and commercial possession of illicit tobacco, with a maximum fine of more than $1.5 million and seven years’ imprisonment.

The government says inspectors would have the power to close premises found to be in breach of the new rules for both short-term periods of up to 90 days and long-term periods of up to a year.

New offences and penalties for anyone in breach of closure orders are included, including for entering closed premises or selling products from closed premises.

Landlords would have the power to terminate leases when a closure order is in place.

The government says it will also start consultation on a new offence for landlords who knowingly lease their premises to illicit tobacco and vape suppliers.

Included in the legislation are offences for falsely claiming to be licensed; resisting seizure; and attempting to retake seized products.

NSW Health Minister Ryan Park says the government understands the community’s frustration at the growth of the illicit tobacco market.

‘We are disrupting the business model of the large-scale criminals who profit from addiction, tax evasion, and putting young people at risk,’ Mr Park said in the announcement.

Inspectors seize more than 6 million cigarettes

The proposed penalties and offences come after the state’s introduction of a tobacco licensing scheme which came into effect at the start of this month.

Licence applicants found guilty of an offence relating to the sale or supply of tobacco or vaping goods could be refused.

The government says NSW Health carried out more than 700 retailer inspections between 1 January and 30 June this year.

Inspectors are reported to have seized more than 90,000 nicotine vapes, e-liquids and pouches with an estimated street value around $2.9 million as well as more than 6 million cigarettes and 1,100 kg of other illicit tobacco products with an estimated street value of around $6.8 million.

The department issued around 150 fines worth around $316,000.

A cross-agency NSW Illicit Tobacco Taskforce has been set up, 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 government says the taskforce has developed options and recommendations for strengthening compliance and enforcement activities in NSW to reduce the availability of illegal tobacco in the community.



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