NSW Bill Takes Illicit Tobacco and Vape Fight To Landlords

The Labor Government has plans to criminalise commercial landlords who’ve turned a blind eye towards their tenants who sell illicit tobacco or illegal vapes. The penalties can consist of up to one year in jail, a fine of $165,000, or both.

“This bill recognises and reinforces the important role that landlords need to play against the sale of illegal tobacco and vapes,” said Ryan Park, NSW Minister for Health.

The Public Health (Tobacco) Amendment (Landlord Offences) Bill 2025 focuses on owners who are aware of illegal sales occurring on their property. Instead of alerting the authorities or taking the initiative to evict tenants, some landlords allow the criminal activities to continue. According to the bill, courts will be able to impose up to 12 months’ imprisonment, a $165,000 fine, or both on such individuals.

“These penalties are the result of extensive consultation and will strike a fair and reasonable balance that ensures we target landlords who are knowingly permitting illegal activity,” said Park.

“We know that the vast majority of landlords do the right thing – but those bad actors out there not only undermine legitimate business, they also expose communities to criminal activity.”

Additionally, the state government’s bill proposal was guided by collaboration with stakeholders, which included three meetings with landlord representatives, retailers, and health advocates, consultations with partner government agencies, and a ‘Have Your Say’ survey to the public.

Bill comes amid illegal tobacco and vape crackdown

The bill’s arrival comes as NSW Health and NSW Police forces have been cracking down on the sale of illicit tobacco and vapes.

Two tobacco stores were closed down on 4 November 2025, on the Pacific Highway, after NSW Health used state laws to order the short-term closures of two shops in St Leonards. They were the first closures in Sydney under the state’s anti-illicit tobacco powers. Authorities found 3,860 illicit cigarettes and 224 illegal vapes.

Illicit tobacco shopfront closures have already escalated in Melbourne. A JOCTF investigation charged an alleged ringleader tied to more than seven tonnes of product and about $36.3 million in unpaid excise taxes.

In Sydney, between 1 January and 27 October 2025, NSW Health inspectors executed 1,260 retailer checks, finding over 11.8 million cigarettes, more than 2,000 kilograms of various illicit tobacco items, and around 170,000 illegal vapes. All the products had an estimated street value of about $18.9 million.

Courts have finalised 17 prosecutions with $597,200 in fines, and 27 prosecutions, including a District Court appeal, are before the courts.

Contributing to pre-existing reforms

The landlord offence builds on the new measures introduced earlier this year. These include penalties of commercial-quantity possession or sale of illicit tobacco, with maximums of over $1.5 million in fines and 7 years’ imprisonment (either or both); short-term (up to 90 days) and long-term (up to 12 months) closure orders for shopfronts selling illicit tobacco, illegal vaping goods, or selling tobacco and non-tobacco smoking products without valid licensing; new offences for violating closure orders, such as entering or selling from closed premises; and offences for falsely claiming to be licensed, resisting product seizure, or attempting to take back products.

“This measure will further minimise the opportunities for illegal tobacco and vape sales to flourish,” said Park.