The NSW Government is continuing its crackdown on the selling of illegal tobacco and vapes by targeting landlords of commercial premises selling the items.

Minister for Health and Regional Health Ryan Park announced the NSW Government will create an offence for commercial landlords who knowingly permit premises to be used by tenants to sell illicit tobacco and illegal vapes.

The introduction of the Public Health (Tobacco) Amendment (Landlord Offences) Bill 2025 will see those found guilty face a year imprisonment, a fine of $165,000 or both.

"The new offence will target landlords who are aware of tenants conducting illicit tobacco and vaping goods businesses from the premises and, instead of notifying the appropriate authorities or taking steps to evict the tenant, knowingly permitting this illicit activity to continue," Mr Park said.

"This bill recognises and reinforces the important role that landlords need to play against the sale of illegal tobacco and vapes.

"This measure will further minimise the opportunities for illegal tobacco and vape sales to flourish."

According to Mr Park the proposed legislation was created through engagement with key stakeholders including three roundtables with landlord representatives, retailers, health advocates and consultation with government agencies and public surveys.

The announcement comes as NSW Health and NSW Police have begun to close down stores in Sydney under the new NSW Government laws.

"From 1 Jan 2025 to 27 October 2025, NSW Health Inspectors conducted around 1,260 retailer inspections and seized more than 11.8 million cigarettes, over 2,000kg of other illicit tobacco products and around 170,000 illegal vaping goods with a combined estimated street value of around $18.9 million," Mr Park said.

The law further boosts recent reforms that target the illegal market and include:

- a new offence for the possession of a commercial quantity of illicit tobacco with a maximum penalty of over $1.5 million and seven years imprisonment or both

- new penalties for the sale of illicit tobacco with a maximum penalty of over $1.5 million and seven years imprisonment or both

- the introduction of short term (up to 90 days) and long term (up to 12 months) closure orders for premises selling illicit tobacco, illegal vaping goods, or selling tobacco or non tobacco smoking products without a licence

- new offences and penalties for anyone who breaches the closure orders, including for entering closed premises or selling products from closed premises

- new lease termination powers for landlords where a closure order is in place

- new offences for falsely claiming to be licensed, resisting seizure and attempting to retake seized products

"We know that the vast majority of landlords do the right thing - but those bad actors out there not only undermine legitimate businesses, they also expose communities to criminal activity," Mr Park said.

"These penalities are the result of extensive consultation and will strike a fair and reasonable balance that ensures we target landlords who are knowingly permitting illegal activity."