illicit tobacco

NSW shuts down first illicit tobacco stores under new laws

Two stores in St Leonards have become the first to be closed under the Government’s new laws targeting illicit tobacco and illegal vaping.

The shops were ordered to shut immediately for 90 days after NSW Health inspectors seized 3,860 illicit cigarettes and 224 illegal vapes. Inspectors, supported by NSW Police, also carried out inspections at other premises.

Under the new laws, NSW Health can issue short-term closure orders of up to 90 days for premises selling illicit tobacco, illegal vaping products, or tobacco without a licence. The Local Court can also make long-term closure orders of up to 12 months if a breach is proven.

The Australian Association of Convenience Stores (AACS) has welcomed the action and urged Victoria to follow suit.

Theo Foukkare, CEO of AACS, said the closures marked “a huge moment for New South Wales authorities and the government as they take on the monumental task of tackling the out-of-control illicit black market”.

“These dangerous stores in St Leonards are closed for three months and – at the discretion of the court – could be shut down for up to a year.

“It is now time for Victoria to immediately step up and replicate these tough laws too. Premier Jacinta Allan and Minister Enver Erdogan could easily adopt the shut down model that New South Wales, South Australia and Queensland already have in place. It’s been tried and tested – and it clearly helps to cut off the legs of this illicit tobacco beast.”

Ryan Park, Minister for Health, said the raids were part of a wider crackdown.

“This will take some time as we ramp up our closure activities, but this is just the beginning. More will follow in the coming days, weeks and months. If you’re doing the wrong thing, sooner or later we will come for you.”

Between 1 January and 27 October 2025, NSW Health inspectors carried out about 1,260 retailer inspections, seizing more than 11.8 million cigarettes, 2,000 kilograms of illicit tobacco and 170,000 illegal vaping products valued at around $18.9 million.

During the same period, 17 prosecutions were finalised, resulting in $597,200 in fines, with 28 further cases currently before the courts.

The NSW Government has also increased maximum penalties for selling tobacco without a licence to $660,000 for individuals and $880,000 for corporations. Commercial possession or sale of illicit tobacco now carries penalties of up to $1.54 million, seven years’ imprisonment, or both.

Retailers and wholesalers must now hold a valid licence to sell tobacco or non-tobacco smoking products. Applications can be made online via the Service NSW website.

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