The New South Wales government is set to introduce legislation that would impose severe penalties on commercial landlords who knowingly permit tenants to sell illicit tobacco and illegal vapes. Offenders could face fines of up to $165,000, a year in prison, or both.
The proposed laws, expected to be tabled in state parliament this week, would require landlords to notify authorities or take steps to evict tenants involved in the illegal trade. This follows the first store closures in Sydney last week under existing state powers, as authorities crack down on a black market contributing to a $3.3 billion shortfall in federal tobacco excise revenue.
NSW Health Minister Ryan Park stated that the penalties strike a fair balance, targeting bad actors while acknowledging that most landlords comply with the law. He emphasized that illegal operations undermine legitimate businesses and expose communities to criminal activity.
Under new powers effective from November 3, officers can close stores for up to 90 days, with court-ordered closures extending to 12 months. Landlords can now terminate leases when closure orders are in place. Additionally, possession of a commercial quantity of illicit tobacco carries a maximum penalty of over $1.5 million and seven years' imprisonment.
A new tobacco licensing scheme requires retailers to display a valid license or face fines from $11,000 to $44,000. As of early November, about 6,000 retailers had obtained licenses, up from 4,500 in October. However, Chief Health Officer Kerry Chant warned that a license does not guarantee compliance, noting that one of the closed stores was licensed.
Premier Chris Minns has urged the federal government to lower the tobacco excise, calling it the leading cause of the illegal tobacco boom. Federal Treasurer Jim Chalmers rejected the idea, stating that making cigarettes cheaper is not the solution.
