NSW Cracks Down on Illegal Tobacco and Vape Sales, Landlords Face stiff Penalties
Landlords who knowingly allow their properties to be used for the sale of illicit tobacco and illegal vapes in New South Wales coudl face fines up to $165,000, a year in prison, or both, under new legislation slated for introduction to state parliament this week. The proposed laws aim to disrupt a growing black market and address a critically important financial loss to the federal government.
The legislation will create a specific offense for commercial landlords who fail to report illicit activity or take action to evict tenants engaged in the illegal trade of tobacco and vaping products. This follows the recent closure of the first two stores in Sydney found to be operating outside the law, empowered by legislation that came into effect on November 3rd.
According to the NSW health minister, Ryan Park, the penalties were steadfast after extensive consultation with landlords, retailers, and health advocates, seeking “a fair and reasonable balance.” He emphasized that while the majority of landlords act responsibly, “those bad actors out there not only undermine legitimate business, they also expose communities to criminal activity.”
the initial enforcement actions saw two stores in Sydney’s northern suburbs shut down, with authorities now possessing the power to close premises for up to 90 days and pursue longer-term closures of up to 12 months through the courts. Landlords are also now empowered to terminate leases when closure orders are in effect.
Beyond landlord accountability, the new laws introduce a severe penalty for possessing a commercial quantity of illicit tobacco – a maximum penalty exceeding $1.5 million and a potential seven-year prison sentence. Park indicated that enforcement will be swift, stating that closures would “be done every day for the next few days and weeks ahead,” while also cautioning against inflated expectations.
The NSW government acknowledges uncertainty regarding the exact number of unlicensed tobacco retailers operating within the state, with initial estimates reaching as high as 19,000. NSW chief health officer, Kerry Chant, suggested this figure likely includes former retailers who have not properly deregistered from previous licensing schemes.
A newly implemented tobacco licensing scheme requires all retailers to prominently display a valid license at the point of sale, with fines ranging from $11,000 to $44,000 for non-compliance. as of October 1st,following a three-month grace period,approximately 4,500 retailers had obtained a license,a number that has as risen to around 6,000 as of last week. Notably, Chant revealed that one of the first two stores closed did possess a license under the new scheme, underscoring the need for continued vigilance. “Just as someone is licensed, you shouldn’t be complacent,” she stated.
The escalating issue has prompted calls from NSW Premier Chris Minns and Minister Park for the federal government to reconsider its tobacco excise policies. They argue the high taxes are a “leading reason” for the resurgence of illegal tobacco use, describing a return to the black market conditions seen in the 1990s, with increased public smoking in areas like office blocks and sporting venues. Tho, federal treasurer Jim Chalmers has dismissed these calls, asserting that lowering the excise is not the solution and would effectively “make cigarettes cheaper for people.”
Here’s a substantive news report answering the “Why, Who, what, and How” questions:
What: The New south Wales (
