The NSW Government is escalating its war on illegal tobacco, ordering 15 more shops to close this week under tough new compliance powers. This brings the total number of short-term closure orders issued since November 3, 2025, to 279, according to new data from NSW Health.
Ramped Up Enforcement
NSW Health inspectors have reinspected 46 premises that were subject to closure orders to ensure compliance. However, nine stores have been hit with two or more consecutive closure orders after continuing to trade in defiance of initial shutdown notices. Health Minister Ryan Park warned bad actors that the state's patience has run out.
"I say to the bad actors out there, if you do the wrong thing, sooner or later, the inspectors will find you," Mr Park said. "I want to thank our health personnel who are undertaking the task of cleaning up our communities of tobacconists who are doing the wrong thing."
High-Profile Disruptions
The crackdown has already disrupted high-profile businesses. Late last month, NSW Health issued 90-day closure orders to two locations on Redfern St, including the well-known Redfern Convenience Store, famous for its large social media following. Notices posted on the shopfronts stated the closures were based on a reasonable suspicion of the sale of illicit tobacco.
Lucrative Illicit Trade
The illicit tobacco trade has become highly lucrative and sophisticated. In January, police arrested a 30-year-old man at an Oran Park storage facility after uncovering more than $426,000 worth of illicit vapes, nicotine gum, and over 380,000 cigarettes. Mr Park reiterated that while the Minns Labor Government has introduced some of the toughest penalties in the country, federal tax structures remain a core driver of the problem.
"I have expressed my concern for some time that so long as the federal government's tobacco excise continues to create a significant gap between legal and illicit tobacco, it will continue to incentivise a black market," Mr Park said. "For our part, the Minns Labor Government has introduced some of the toughest penalties for illegal tobacco in the country. Ramped up penalties, including prison sentences of up to seven years, fines of over $1.5 million, implemented a tobacco licensing scheme to better identify bad actors, and now we're closing down stores that do the wrong thing."
Property Supply Chain Targeted
To further squeeze the market, the state has proposed laws that would hit landlords with up to a year in prison or a $165,000 fine if they knowingly allow tenants to sell illegal tobacco products. Enforcement is driven by NSW Health inspectors, who frequently deploy undercover tactics with operational support from the NSW Police Force. Authorities urge the public to continue reporting suspected illicit traders through the NSW Health online portal.
