From October 1st, all retailers and wholesalers in New South Wales selling tobacco or non-tobacco smoking products must hold a valid licence under the state’s new Tobacco Licensing Scheme. The three-month transition period has ended, and anyone trading without a licence or failing to display it at the point of sale now faces significant penalties.

What Retailers Need to Know

Applications had to be lodged by 1 October to continue trading while approvals are processed. Businesses can apply online through Service NSW, with requirements including a criminal history check and payment of the annual fee. Authorities will assess applications carefully, considering past compliance, accuracy of information supplied, and recommendations from law enforcement agencies.

Stronger Compliance and Penalties

A new Centre for Regulation and Enforcement has been established within NSW Health to oversee the scheme. The government has also introduced stronger penalties, including:

Fines of up to $660,000 for individuals and $880,000 for corporations trading without a licence.
The power to close non-compliant premises for up to 12 months.
New offences for possessing or selling illicit tobacco, with penalties reaching $1.54 million and potential prison terms of up to seven years.

These measures make NSW one of the strictest jurisdictions in Australia when it comes to tobacco regulation.

Recent Enforcement Activity

NSW Health has already been active in targeting illegal sales. In the last financial year, inspectors carried out around 1,750 site visits, confiscating more than 14 million cigarettes, almost three tonnes of loose tobacco, and over 200,000 illegal vaping products worth nearly $22 million. Sixteen cases resulted in prosecutions, with fines exceeding $430,000.

What It Means for Independent Operators

For service stations and other small retailers, the new rules mean compliance must be front of mind. Having the right licence, following conditions closely, and steering clear of illicit supply channels are essential to avoiding heavy penalties.

While the focus is on tackling illegal trade and protecting public health, these reforms also level the playing field for businesses that do the right thing. Independent operators who comply can trade with confidence, knowing enforcement is targeting those cutting corners.

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