The NSW government is set to introduce new laws to crack down on the sale of illicit tobacco and illegal vaping goods across the state.

The new legislation will see NSW bring in some of the “toughest penalties in the country” for the sale and commercial possession of illicit tobacco and will grant substantial powers for inspectors to close premises found to be in breach of the new rules.

The amendments form part of the NSW government’s commitment to protecting the community from the harms of tobacco and vapes, and will include, among other things:

• A new offence for the commercial possession of illicit tobacco with a maximum penalty of over $1.5 million and seven years’ imprisonment. 
• New penalties for the sale of illicit tobacco with a maximum penalty of over $1.5 million and seven years’ imprisonment.
• 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 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.
• 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.

In addition to the new measures, the NSW government will also commence a targeted consultation on a new offence for landlords who knowingly lease their premises to illicit tobacco and vape suppliers.

“These will be among the toughest penalties in the country and will send a clear message to bad actors that selling illegal tobacco and vaping goods will not be tolerated in NSW,” says NSW Minister for Health Ryan Park.

“We are disrupting the business model of the large-scale criminals who profit from addiction, tax evasion, and putting young people at risk.

“This isn’t just a serious health issue – it’s about fairness, because these illegal operators are undercutting small businesses that are doing the right thing. 

“I know many landlords have also expressed their concerns about illegal tobacco operations occurring on their premises. These new powers will give them certainty and the opportunity to terminate leases where there is a closure order in place.”

Tobacco licensing scheme

These new penalties and offences will complement the tobacco licensing scheme which came into effect from 1 July 2025.

The scheme ensures accurate information is collected on tobacco retailing and wholesaling activities in NSW to support enforcement efforts, deter tobacco retailing businesses from operating outside of the law and provide greater oversight of the tobacco retail industry.

If an applicant has been found guilty of an offence relating to the sale or supply of tobacco or vaping goods, they could be refused a licence to sell these products.