Commercial landlords in NSW who knowingly allow tenants to sell illicit tobacco and vapes could soon face jail time

The NSW government has introduced the Public Health (Tobacco) Amendment (Landlord Offences) Bill 2025, with the new offence carrying a maximum penalty of one year imprisonment, a fine of $165,000, or both.

The new offence will target landlords who are aware of tenants conducting illicit tobacco and vaping goods businesses from the premises and, instead of notifying the appropriate authorities or taking steps to evict the tenant, knowingly permit this illicit activity to continue.

NSW Minister for Health Ryan Park says the bill recognises and reinforces the important role that landlords need to play against the sale of illegal tobacco and vapes.

“This measure will further minimise the opportunities for illegal tobacco and vape sales to flourish,” he says.

“We know that the vast majority of landlords do the right thing – but those bad actors out there not only undermine legitimate business, they also expose communities to criminal activity.

“These penalties are the result of extensive consultation and will strike a fair and reasonable balance that ensures we target landlords who are knowingly permitting illegal activity.”

The proposed legislation was informed by engagement with key stakeholders, including three roundtables with landlord representatives, retailers, and health advocates, consultation with partner government agencies, and a public ‘Have Your Say’ survey.

It comes as NSW Health and NSW Police have begun closing down illicit tobacco and vaping stores this month under the NSW government’s new laws.