NSW Unveils New Laws to Tackle Illegal Tobacco

The New South Wales Government has introduced sweeping reforms to crack down on the sale of illegal tobacco and vaping products, aiming to stamp out black-market activity and protect public health.

The move follows growing pressure from Northern Beaches MPs Jacqui Scruby and James Griffin, who have both pushed for tougher action against the sale of illicit products, particularly vapes often sold to minors near schools and public spaces.

Jacqui Scruby, MP for Pittwater, undertook her own undercover checks across local stores, exposing retailers openly selling illegal products within her electorate. She has long raised concerns about the influence of organised crime in the illicit tobacco trade and the lack of legal tools to shut these operations down.

Manly MP James Griffin also launched a petition calling for state-wide reform and stronger planning regulations to stop the rapid spread of unlicensed tobacco retailers. He highlighted the failure of existing measures and advocated for substantial changes that would empower both local and state authorities.

Health Minister Ryan Park announced that the new legislation would impose some of the harshest penalties in Australia and close previous legal loopholes exploited by rogue traders. The goal is to disrupt the criminal networks behind the trade while safeguarding community health and supporting law-abiding small businesses.

The reforms also address landlord concerns, offering new legal rights to terminate leases where tenants are found operating illegal tobacco or vape stores. According to the government, landlords have previously lacked the authority to act, despite the growing prevalence of such operations.

Among the key provisions in the legislation are the creation of a new criminal offence for the commercial possession of illicit tobacco, which now carries a maximum fine of more than $1.5 million and a potential prison sentence of up to seven years. The same penalties apply to the sale of illegal tobacco or vape products.

Authorities will also be able to issue short-term closure orders for up to 90 days, or long-term orders for up to 12 months, for any premises found in breach of the new laws or trading without a tobacco licence. Breaching a closure order—by entering, trading from, or otherwise using the premises will now be a criminal offence in itself.

Additional penalties apply to landlords who knowingly lease their properties to illegal operators, and new offences cover actions such as pretending to be licensed, resisting the seizure of goods, or attempting to reclaim confiscated products.

These new powers complement the tobacco licensing scheme that came into effect on 1 July 2025. Under this scheme, all tobacco retailers and wholesalers in NSW are required to register, allowing regulators to maintain accurate records, monitor the industry, and deter illegal activity. The scheme is designed to improve transparency and provide greater oversight of the tobacco retail sector.

Enforcement efforts are already underway. In the first half of 2025, NSW Health conducted more than 700 inspections of retail outlets, resulting in the seizure of over 90,000 illegal vaping products, more than six million illicit cigarettes, and over a tonne of other illegal tobacco goods. The total estimated value of the seized products is $9.7 million. However, despite these efforts, authorities acknowledge that illegal products remain widely accessible, reinforcing the need for more powerful enforcement tools.

To support the rollout of these laws, the NSW Government has established an interagency Illicit Tobacco Taskforce. The group brings together representatives from NSW Health, NSW Police, the Department of Customer Service, the Department of Creative Industries, Tourism, Hospitality and Sport, and the Department of Communities and Justice.

The NSW Taskforce will work in partnership with a federal taskforce established in 2018, which includes the Australian Border Force, the Australian Criminal Intelligence Commission, the ATO, and other national agencies. The goal is to coordinate efforts across all levels of government to reduce the supply and distribution of illegal tobacco and vaping products.

The NSW Government says these changes will provide enforcement bodies with the tools they need to close illegal operations, support compliant businesses, and help clean up the state’s tobacco retail environment. The tougher laws aim to dismantle the illegal trade and reduce access to dangerous and addictive products—particularly among young people.

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