01/07/2026
A new wave of enforcement in New South Wales is now targeting landlords who allow illicit tobacco and vape sales on their premises, with significant penalties introduced from 30 June 2026.
Key landlord obligations under the new laws
- Criminal liability:
Landlords can now be prosecuted if they knowingly allow illegal tobacco or vape products to be sold from their property. - Severe penalties:
Maximum penalties include:- Up to $165,000 in fines
- Up to 12 months’ imprisonment
- Expectation to actively monitor tenants:
The legislation is designed to force landlords to take an active role in checking tenant activities, rather than remaining passive. - Increased accountability and reporting:
Early indications show landlords are already:- Reporting suspected illicit activity
- Seeking guidance from NSW Health on compliance obligations
- Stronger intervention powers:
The broader reforms also include:- Closure orders against offending retailers
- Powers enabling lease termination where illegal activity is identified
What this means in practice
These reforms shift responsibility beyond retailers to property owners, signalling that:
- Turning a blind eye is no longer acceptable
- Landlords must conduct due diligence on tenants and their business activities
- There is a clear incentive to report suspected illicit trade early to avoid liability
Minister Ryan Park on the intent of the laws
NSW Health Minister Ryan Park emphasised that the legislation is designed to drive behavioural change among landlords:
“Landlords who intentionally allow tenants to sell illicit tobacco and illegal vapes are not only undermining legitimate business operations, but they are exposing their community to associated criminal activities.
“This legislation builds on our extensive efforts to crack down on illegal tobacco and vapes across NSW with some of the toughest penalties in the country, and sends a clear message to retailers and landlords who are doing the wrong thing.
“We continue to tackle the problem of illicit tobacco head on, despite the federal government’s tobacco excise driving the black market.”
He also noted that landlords are already reaching out to authorities with concerns about tenant behaviour, indicating the reforms are beginning to have an immediate effect. Members of the public can lodge complaints about retailers they believe are doing the wrong thing via Report non-compliance with tobacco and vaping product laws in NSW