New Bill Targets Commercial Landlords to Combat Illicit Tobacco and Illegal Vaping Sales

The Minns Labor Government plans to establish an offence for commercial landlords who intentionally allow their properties to be used by tenants for selling illicit tobacco and illegal vapes, through the introduction of the Public Health (Tobacco) Amendment (Landlord Offences) Bill 2025.

The new offense will have a maximum penalty of 1 year in prison, a fine of $165,000, or both.

This offense is aimed at landlords who are aware of tenants running illegal tobacco and vaping businesses on their property and, instead of informing the authorities or taking action to evict the tenant, allow this illegal activity to persist.

This proposed legislation was developed through engagement with key stakeholders, including three roundtables with landlord representatives, retailers, and health advocates, consultations with partner government agencies, and a public 'Have Your Say' survey.

This comes as NSW Health and NSW Police have started shutting down illegal tobacco and vaping stores this month under the NSW Government’s stringent new laws.

From 1 Jan 2025 to 27 October 2025, NSW Health Inspectors carried out approximately 1,260 retailer inspections and seized over 11.8 million cigarettes, more than 2,000kg of other illegal tobacco products, and around 170,000 illegal vaping items with a combined estimated street value of about $18.9 million.

During the period from 1 January to 27 October 2025, the NSW Ministry of Health concluded 17 prosecutions, with the courts imposing a total of $597,200 in fines related to e-cigarette and tobacco offenses. Currently, 27 prosecutions, including the District Court appeal, are before the Courts.

The legislation builds on recent reforms targeting the illegal tobacco and vaping market, including:

• a new offense for possessing a commercial quantity of illegal tobacco, with a maximum penalty of over $1.5 million and 7 years' imprisonment, or both

• new penalties for selling illegal tobacco, with a maximum penalty of over $1.5 million and 7 years' imprisonment, or both

• the introduction of short-term (up to 90 days) and long-term (up to 12 months) closure orders for premises selling illegal tobacco, vaping goods, or selling tobacco or non-tobacco smoking products without a license

• new offenses and penalties for anyone breaching these closure orders, including entering closed premises or selling products from closed premises

• new lease termination powers for landlords where a closure order is in place

• new leading offenses for falsely claiming to be licensed, resisting seizure, and attempting to retake seized products.

© State of New South Wales. For current information go to www.nsw.gov.au.