NSW Landlords Could Face Jail or $165,000 Fine for Allowing Illegal Vape and Tobacco Sales

Key Points

• Landlords who fail to report or evict tenants selling illicit tobacco could face penalties.
• Maximum fine: AUD 165,000 or one year imprisonment.
• First two stores closed under new powers introduced Nov. 3.
• New offence for possession of commercial quantities: AUD 1.5m fine, seven years’ jail.
• About 19,000 unlicensed retailers estimated in NSW; 6,000 now licensed.

2Firsts, Nov. 12, 2025 — According to The Guardian, the New South Wales government plans to introduce legislation that would make commercial landlords criminally liable if they knowingly allow tenants to sell illicit tobacco or illegal vapes and fail to take action.

Under the proposed laws, landlords who do not notify authorities or evict tenants involved in illegal sales could face fines of up to AUD 165,000, a year in prison, or both.

The legislation follows the first closures of illicit vape and tobacco stores in Sydney last week under powers that took effect on November 3, allowing officers to shut shops for up to 90 days and seek court orders for closures of up to 12 months.

Health Minister Ryan Park said the penalties were developed in consultation with landlords, retailers, and public health experts, describing them as “a fair and reasonable balance.”

“The vast majority of landlords do the right thing, but bad actors undermine legitimate business and expose communities to criminal activity,” Park said.

Landlords will now be able to terminate leases when closure orders are issued. The new framework also introduces an offence for possessing a commercial quantity of illicit tobacco, carrying penalties of over AUD 1.5 million and up to seven years in prison.

Chief Health Officer Kerry Chant said about 6,000 retailers have obtained valid licences since the new tobacco licensing scheme took effect on October 1, following a three-month grace period. Retailers must display their licence at the point of sale or face fines ranging from AUD 11,000 to 44,000.

State officials estimate there are around 19,000 unlicensed tobacco retailers in NSW, though this includes former vendors who failed to deregister. 

Source: The Guardian