The New South Wales government will introduce legislation that can punish landlords who knowingly allow tenants to trade illicit tobacco and illegal vapes. Under the bill, commercial landlords who fail to notify authorities or take steps to evict tenants running unlawful tobacco or vaping operations could face fines up to $165,000, up to 12 months’ imprisonment, or both.
The package follows new enforcement 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. Where closure orders are in place, landlords would be able to terminate leases. Two stores in Sydney’s northern suburbs were among the first to be shut under those powers.
Other measures in the reforms include a new offence for possession of a commercial quantity of illicit tobacco, carrying a maximum penalty of more than $1.5 million and up to seven years’ imprisonment, or both. A mandatory tobacco retail licensing scheme also begins enforcement: retailers must display a valid licence at point of sale or face fines ranging from $11,000 to $44,000.
NSW Health Minister Ryan Park said the penalties were shaped after consultation with landlords, retailers and health groups and struck a “fair and reasonable balance”. He added that most property owners behave responsibly but a minority of bad actors undermine legitimate businesses and expose communities to crime.
NSW Chief Health Officer Kerry Chant warned regulators still do not have a precise count of unlicensed retailers. Earlier estimates of about 19,000 outlets likely included former retailers who had not deregistered, she said. When the licensing scheme started on 1 October, about 4,500 retailers had applied during a three-month grace period; that number had risen to roughly 6,000 by last week. Chant also noted that holding a licence does not guarantee compliance—one of the first two closed stores did hold a licence.
Premier Chris Minns and Minister Park have urged the federal government to consider lowering the tobacco excise, which they blame for boosting the illegal market. Federal Treasurer Jim Chalmers has rejected calls to reduce the excise, saying cheaper cigarettes are not the answer. Minns has argued the high excise has contributed to a resurgence of public smoking and street-level cigarette trade in parts of Sydney.
