Landlords who knowingly allow tenants to sell illicit tobacco and illegal vapes could face fines up to $165,000, up to 12 months’ imprisonment, or both, under legislation the New South Wales government plans to introduce to state parliament this week. The reforms would create an offence for commercial landlords who fail to notify authorities or take steps to evict tenants operating illegal tobacco and vaping businesses from their premises.
The changes follow the first stores being shut down in Sydney last week under powers that came into effect on 3 November, which allow officers to close premises for up to 90 days and seek court orders for closures of up to 12 months. Landlords will be able to terminate leases where closure orders are in place.
Other measures include a new offence for possession of a commercial quantity of illicit tobacco, carrying a maximum penalty of more than $1.5m and up to seven years’ imprisonment, or both. A new tobacco licensing scheme requires retailers to display a valid licence at the point of sale or face fines ranging from $11,000 to $44,000.
NSW health minister Ryan Park said the proposed penalties were developed after consultation with landlords, retailers and health advocates and represented “a fair and reasonable balance”, adding that most landlords “do the right thing” but some bad actors undermine legitimate business and expose communities to criminal activity.
Two stores in Sydney’s northern suburbs were among the first to be closed under the new powers. NSW chief health officer Kerry Chant noted regulators were still unsure how many unlicensed retailers there are in the state after earlier estimates of about 19,000, saying that figure likely included former retailers who had not deregistered. Around 4,500 retailers had obtained licences under the new scheme when it began on 1 October after a three-month grace period; Chant said that had risen to about 6,000 last week. She warned that having a licence did not guarantee compliance, noting one of the first two closed stores did hold a licence.
Park and NSW premier Chris Minns have urged the federal government to lower the tobacco excise, which they say is driving the boom in illegal tobacco. Federal treasurer Jim Chalmers has rejected that approach, saying making cigarettes cheaper is not the solution. Minns has blamed the excise for the surge in illegal tobacco use, saying it has led to a return to behaviours seen decades ago, with public smoking and street trade increasing in Sydney.
