In Short:

• Strict Penalties: NSW landlords face up to one year in prison and fines of $165,000 for knowingly permitting illegal tobacco or vape sales on their property.
• Lease Termination: New powers allow landlords to bypass mediation and terminate leases immediately if a Closure Order is issued against a tenant.
• Organised Crime Link: The crackdown follows a surge in "earn or burn" extortion tactics and over 250 firebombings linked to illicit trade syndicates nationwide.

Landlords warned: gaol time and $165k fines for illegal tobacco sales

Commercial property owners are being put on notice; turning a blind eye to illegal tobacco and vape sales could now lead to a prison cell.

New South Wales has joined a national crackdown on the illicit tobacco trade, introducing the Public Health (Tobacco) Amendment (Landlord Offences) Bill 2025. The laws target landlords who knowingly allow their premises to be used for criminal activity, rather than taking steps to evict non-compliant tenants.

While the high-profile firebombings have largely occurred in metropolitan hubs, the supply chains for illicit tobacco often snake through regional hubs like Hay and Balranald. Local landlords, particularly those leasing to small convenience stores or mixed-retail outlets, now have a legal obligation to ensure their tenants hold a valid NSW Tobacco Licence.

NSW Health Minister Ryan Park issued a reminder that the laws are designed to protect the community.

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

Between January and October last year, NSW Health seized over 11.8 million cigarettes and $18.9 million worth of illegal goods.

For property owners, the message is clear; due diligence is no longer optional.

Under the new regime, if a shop is caught selling illegal vapes or tobacco, authorities can issue a Closure Order for up to 12 months.

Key Change: Landlords can now terminate these leases with 28 days' written notice. Tenants under these orders lose their usual rights to mediation or compensation, protecting the landlord from protracted legal disputes.