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NSW commercial landlords face $165k fines in war on illicit tobacco
Commercial landlords who knowingly permit tenants to sell illicit tobacco and vaping products will face imprisonment or fines up to $165,000, with the state’s scrutiny ramping up from today.
New laws targeting commercial landlords who knowingly permit tenants to sell illicit tobacco and vaping goods have officially begun as part of a major Minns government crackdown.
From today, it is considered an offence for landlords to be aware of the sale of illicit tobacco and vaping goods from their premises and permit the activity to continue, without taking steps to report or evict the tenant.
The new laws will carry a maximum penalty of one year imprisonment, a fine of $165,000, or both.
Earlier this year, the NSW government added 30 NSW health inspectors to its dedicated, state-wide team working with NSW Police to close down stores selling illicit tobacco and vaping products.
Under the state regulation, inspectors can issue short-term and long-term closure orders for premises selling illicit tobacco or illegal vaping goods.
As of 26 June 2026, NSW Health has issued 321 short-term closure orders since 3 November 2025, with 162 currently in force.
Last year, landlords were given powers to terminate a lease where a closure order was in place, with 28 days’ notice.
NSW Health Minister, Ryan Park, said landlords who intentionally allowed tenants to sell illegal tobacco were not only undermining legitimate businesses, but exposing their community to associated criminal activities.
“This legislation builds on our extensive efforts to crack down on illegal tobacco and vapes across NSW with some of the toughest penalties in the country, and sends a clear message to retailers and landlords who are doing the wrong thing,” he said.
Minister for Police and Counter-terrorism, Yasmin Catley, said illicit tobacco and vapes fuelled black market and criminal activity, putting community health and safety at risk.
“If a landlord knows their shop is being used to sell illicit and illegal products and wilfully turns a blind eye, they are part of the problem,” she said.
“This government is not mucking around. If you are helping this illegal trade continue, whether you are behind the counter or holding a lease, you should expect the authorities at your door.”
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