New Law in New South Wales, Australia: Selling Illegal E-cigarettes May Lead to Up to 7 Years in Prison and Over One Million Dollars in Fines

Key points:

·The government of New South Wales (NSW) in Australia is planning to introduce the strictest new laws in the country to crack down on the sale of illegal tobacco and e-cigarette products. 

·The new legislation will make it a new offence for businesses to possess illegal tobacco, with maximum fines and sentences of up to 1.5 million Australian dollars (approximately $990,000) and 7 years. 

·The new laws also introduce temporary (up to 90 days) and permanent (up to 12 months) closure orders for premises selling illegal tobacco and e-cigarettes. 

·The regulations will strengthen the tobacco licensing system to ensure the market operates in a regulated manner.

【2Firsts News Flash】According to miragenews on July 27, the government of New South Wales (NSW) in Australia will introduce a series of strict new laws to crackdown on the illegal sale of tobacco and e-cigarette products throughout the state. This move will make NSW one of the toughest legal regions in the country, with offending shop owners facing fines of over $1.5 million Australian dollars (approximately $990,000 USD) and up to 7 years in prison. Additionally, enforcement officers will be granted greater powers to shut down places that violate the new regulations.

These measures are an important part of the New South Wales government's efforts to protect the community from the harm of tobacco and e-cigarettes. The new laws stipulate that businesses holding illegal tobacco will face a new offense, with fines and maximum sentences as high as $1.5 million Australian dollars (approximately $990,000 USD) and 7 years. Additionally, the sale of illegal tobacco will be strictly enforced, with those selling tobacco without permission also facing harsh penalties.

The new law also introduces short-term (up to 90 days) and long-term (up to 12 months) closure orders for venues selling illegal tobacco and e-cigarettes. Additionally, new offenses and penalties have been established for those who violate closure orders, such as unlawfully entering sealed premises or selling products in sealed premises. Landlords are also granted the right to terminate contracts when premises are closed.

The New South Wales government is planning to launch a special consultation on new criminal responsibilities for landlords, where landlords could face legal responsibility if they are aware that their properties are being used for illegal tobacco and e-cigarette sales. These new penalties and responsibilities will complement the tobacco licensing system, set to take effect from July 1, 2025. The system aims to ensure accurate information on tobacco retail and wholesale activities in New South Wales, support law enforcement efforts, prevent unlicensed operation, and enhance regulation of the tobacco retail industry.

During the period from January 1, 2025, to June 30, 2025, the Department of Health in New South Wales conducted over 700 inspections of retailers, resulting in the seizure of: over 90,000 nicotine e-cigarettes, e-liquids, and nicotine pouches, with an estimated value of around $2.9 million AUD (approximately $1.91 million); over 6 million cigarettes and 1,100 kilograms of other illegal tobacco products, with an estimated value of around $6.8 million AUD (approximately $4.47 million), and issued approximately 150 fines totaling around $316,000 AUD (approximately $208,000 ).

The New South Wales government has established a cross-agency "NSW Illegal Tobacco Strike Force," with members including senior representatives from the NSW Department of Health, NSW Police Force, Department of Fair Trading, Department of Industry, Tourism, Hospitality and Resorts, and Department of Communities and Justice. This task force has been tasked with developing strategies and recommendations to enhance compliance and enforcement activities by the NSW government to reduce the availability of illegal tobacco products in society.

Health Minister Ryan Park stated:

“We understand the frustration within the community regarding the growth of the illegal tobacco market. The newly introduced heavy penalties will be among the toughest nationwide, sending a clear message to illegal operators: New South Wales will not tolerate the sale of illegal tobacco and e-cigarettes. Through this crackdown, we are disrupting the business models of large-scale criminals profiting from addiction, tax evasion, and harm to young people. This is not just a serious health issue, but also a matter of fairness, as these illegal operators worsen the business environment for legitimate small businesses. Many landlords are also concerned about illegal tobacco activities on their properties. The new powers will provide them with certainty and the opportunity to terminate leases under closure orders. These changes strengthen the tobacco licensing scheme that came into effect on July 1, helping to rid the New South Wales tobacco market of criminals and providing a level playing field for law-abiding small businesses.”