New laws targeting commercial landlords who knowingly permit tenants to sell illicit tobacco and vaping goods from their premises begin today, as part of the government’s continued crackdown on the illicit market.
The new offence applies to landlords who are aware of the sale of illicit tobacco and vaping goods from their premises and knowingly permit this activity to continue, without taking steps to report or evict the tenant. It carries a maximum penalty of 1 year imprisonment, a fine of $165,000, or both.
The Minns government’s reforms to crack down on the illicit tobacco and illegal vaping goods market, include:
- a new offence for the possession of a commercial quantity of illicit tobacco with a maximum penalty of over $1.5 million and 7 years’ imprisonment, or both
- new penalties for the sale of illicit tobacco with a maximum penalty of over $1.5 million and 7 years’ imprisonment, or both
- 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 or non-tobacco smoking products 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.
Closure orders
As of 26 June 2026, NSW Health has issued 321 short-term closure orders since 3 November 2025, with 162 currently in force.
The government says it is aware the sale of illicit tobacco and vaping products continues to evolve, with some businesses attempting to obscure and avoid the enforcement activities of NSW Health Inspectors, by using QR codes and social media communications to facilitate the ongoing sale of illicit tobacco to customers, after a closure order has been issued.
NSW Police and NSW Health are working together to identify these methods and pivot their enforcement strategies to shut down this activity.
Members of the public can lodge complaints about retailers they believe are doing the wrong thing via the reporting portal on the NSW Health website.
Clear message
Minister for Health Ryan Park said, ‘Landlords who intentionally allow tenants to sell illicit tobacco and illegal vapes are not only undermining legitimate business operations, but they are exposing their community to associated criminal activities.
‘This legislation builds on our extensive efforts to crack down on illegal tobacco and vapes across NSW with some of the toughest penalties in the country, and sends a clear message to retailers and landlords who are doing the wrong thing.
‘We continue to tackle the problem of illicit tobacco head on, despite the federal government’s tobacco excise driving the black market.’
Not mucking around
Minister for Police and Counter-terrorism Yasmin Catley said, ‘Illicit tobacco and vapes are not harmless products. They fuel a black market and criminal activity – which undercuts honest businesses and puts community health and safety at risk.
‘If a landlord knows their shop is being used to sell illicit and illegal products and wilfully turns a blind eye, they are part of the problem.
‘This government is not mucking around. If you are helping this illegal trade continue, whether you are behind the counter or holding a lease, you should expect the authorities at your door.’
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