The NSW government’s new laws to crack down on the sale of illicit tobacco and illegal vaping goods will be introduced to parliament today (6 August).

Last week, the government announced it would 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.

In addition, the government has unveiled new penalties for selling tobacco without a licence. This will now carry a maximum penalty of $660,000 for an individual or $880,000 for a corporation.

According to the NSW government, the amendments form part of its commitment to protecting the community from the harms of tobacco and vapes, and will also include:

• 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.
• 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.

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.

“Today, we are introducing our tough new illegal tobacco and vaping laws into parliament, which will be among the toughest penalties in the country,” says NSW Minister for Health Ryan Park.

“These new laws will give us the power to shut down these illicit tobacco and vape stores and disrupt this criminal business model.

“These reforms will send a clear message to anyone selling illegal tobacco or vaping products, which is: get rid of these products or they will be seized, your store will be closed, and you will be prosecuted to the full extent of the law.

“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.”

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.