The NSW Government will roll out reforms to better protect the community from the harms of illegal tobacco, including tougher penalties, more enforcement officers, and a new tobacco licensing scheme for retailers.
A new licensing scheme
Recent enforcement activities have observed a rise in illicit tobacco retailing including amongst rural communities in NSW, which adversely affects businesses that operate within the law. Illicit retailers undercut legitimate small businesses by selling illicit tobacco at lower prices and some have been found to be located in close proximity to schools.
A new tobacco licensing scheme will also be introduced, to better protect those businesses doing the right thing and ensure greater oversight of the tobacco retail industry in NSW.
Under these changes, retailers and wholesalers of tobacco and non-tobacco smoking products will be required to hold a tobacco licence and pay an annual fee.
A licence will be able to be refused, or revoked, if the applicant has been convicted of a tobacco or vaping product related offence.
The scheme will support comprehensive and targeted enforcement to identify and penalise those retailers and wholesalers doing the wrong thing.
The proposed legislation includes penalties of up to $220,000 for corporations and $44,000 for individuals for selling tobacco without a licence under the new scheme.
To ensure that applying for a tobacco licence is not burdensome for small businesses, a technical support phoneline will be available to everyone submitting an application.
A tobacco licensing scheme will complement the NSW Government's broader approach to tobacco compliance and enforcement.
Tougher penalties
The government will double maximum penalties for a range of tobacco retailing offences, including:
- individuals selling tobacco products to minors will be fined up to $22,000 for a first offence and $110,000 for a subsequent offence, with corporations liable for up to $110,000 for a first offence and $220,000 for subsequent offences
- individuals selling tobacco products not in the required packaging or with the mandatory health warnings will be fined up to $22,000, and corporations up to $110,000
- people impersonating or obstructing an inspector can be fined up to $1,100, up from $550.
Enforcement & seizures
NSW Health will also recruit an additional 14 enforcement officers to strengthen compliance efforts across the state. This doubles the number of authorised inspectors employed by the Ministry of Health. Ahead of these reforms, NSW Health boosted regional enforcement capacity by supporting the employment of four additional enforcement officers. This compliance workforce complements authorised staff who undertake inspections across local health districts.
From 1 July 2024 to 30 September 2024, NSW Health inspectors conducted 565 targeted retail inspections, seizing more than 3.2 million cigarettes and over 600kg of other illicit tobacco products, with an estimated value of over $3.7 million.
NSW Health collaborates with NSW Police and other state and national regulatory agencies on enforcement related to illicit tobacco sales, including sharing intelligence, working on joint targets and joint operations.
Information on NSW tobacco retailing laws can be found on the NSW Health website.
Members of the public are encouraged to report suspected breaches of tobacco and e-cigarette retailing laws on the NSW Health website.
Quotes attributable to Minister for Health, Ryan Park MP:
"I am very concerned by the prevalence of illegal tobacco and e-cigarettes in our community, and their proximity to our schools and children."
"These new laws are the most significant tobacco retailing reforms in NSW in the last decade and will help us combat the scourge of illicit tobacco sales across the state."
"We are introducing tougher penalties for retailers doing the wrong thing, and boosting our team of enforcement officers to strengthen our compliance efforts."
"The increased tobacco penalties reflect the seriousness of these offences. Retailers should be put on notice that if they are caught breaking tobacco retailing laws they will be penalised."
"A tobacco licensing scheme in NSW will also further enhance our state's strong approach to enforcement of tobacco retailing laws. It will allow us to have better oversight over the tobacco industry and will support our comprehensive approach to help reduce the use, impact and associated costs of tobacco in NSW."
Quotes attributable to Member for Wagga Wagga Joe McGirr MP:
"After being made aware of the escalating problem of illegal tobacco in my electorate and across the state, I prepared a Private Members' Bill to require the licensing of tobacco retailers and increased penalties for offences."
"This Bill was prepared with widespread consultation with industry and the community, with strong support for my proposals to tackle this growing criminal activity which is undermining health messaging and taking an expensive toll on legitimate retailers."
"So, I am delighted that the government has met this challenge by proposing its own Bill, reflecting the content of my Bill, and I look forward to supporting the government in this endeavour when parliament resumes."
"Licensing on its own will not eliminate the black market trade in tobacco but it will provide a valuable structure that will help to reduce the damaging effects of this rapidly-growing problem."
"I congratulate the government for taking this strong proactive stance and I look forward to working together on further steps to tackle the illegal tobacco trade."
Quotes attributable to NSW Health Chief Health Officer Dr Kerry Chant:
"NSW Health supports a holistic approach to tobacco control, recognising reducing supply and access to illicit products is one component."
"Operating a tobacco licensing scheme will ensure NSW Health has accurate, up-to-date information on tobacco retailing and wholesaling activities in NSW, facilitating more efficient and effective enforcement activity."
"If you think a tobacco or e-cigarette retailing law has been broken by a retailer in NSW, you can report this via the NSW Health website."
