Commercial landlords in NSW who knowingly permit tenants to sell illicit tobacco and vaping goods from their premises now face significant penalties. As of 1 July, the offence carries a maximum penalty of 1 year imprisonment, a fine of $165,000, or both.

The new laws were introduced as part of the NSW government’s continued crack down on the illicit market. The 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.

“This government is not mucking around,” said Minister for Police and Counter-terrorism Yasmin Catley. “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.”

These legislative changes follow laws already in Queensland and introduce new obligations for landlords and expand existing lease termination powers in relation to premises determined by the Government to be involved in the sale of illicit tobacco and vaping products.

“It is important that landlords understand the new requirements and review their arrangements to ensure they remain compliant,” said Angus Nardi, Chief Executive of the Shopping Centre Council of Australia (SCAA).

“The SCCA has worked closely with the NSW Government and NSW Health to ensure a sensible approach and will continue to engage constructively as the new legislative framework is implemented.”

Latest reforms

The NSW 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.

As of 26 June 2026, NSW Health has issued 321 short-term closure orders since 3 November 2025, with 162 currently in force.

“We continue to tackle the problem of illicit tobacco head on, despite the federal government’s tobacco excise driving the black market,” said Minister for Health Ryan Park.