You own a shop, work in a retail business or lease commercial premises, and police or NSW Health have accused you of being involved in the sale or possession of illicit tobacco.
You may be wondering: what happens now, and could you face a criminal charge?
NSW has introduced significant reforms targeting illicit tobacco and illegal vaping products. The laws now extend beyond the person selling the products and can potentially affect business owners, employees, and, in certain circumstances, commercial landlords.
The consequences can be serious. Depending on the alleged conduct, you could face substantial fines, a criminal conviction, closure of the premises, or imprisonment.
If you are facing an illegal tobacco investigation or charge, seeking legal advice early can help you understand your position and what to do next.
What is illicit tobacco?
Illicit tobacco generally refers to tobacco products that are being dealt with in breach of the applicable tobacco laws. This can include tobacco products that are unlawfully sold, possessed or otherwise dealt with outside the legal regulatory system.
The laws can apply to cigarettes, tobacco and certain vaping products, with the precise offence depending on the conduct alleged.
Selling illicit tobacco carries a maximum penalty of 7 years’ imprisonment and/or a $1.54 million fine.
What changed with the NSW illicit tobacco laws?
NSW has introduced several reforms targeting the illicit tobacco trade.
A licensing scheme now applies to tobacco retailers, including physical and online stores. NSW also introduced powers to close premises involved in illicit tobacco sales.
More recently, from 1 July 2026, a new offence applies to certain commercial landlords who knowingly permit premises to be used for the sale of illicit tobacco or illegal vaping products. The maximum penalty for this offence is 12 months’ imprisonment and/or a fine of $165,000.
This means that the potential criminal consequences are no longer limited to the person standing behind the counter.
The new offence focuses on commercial landlords who knowingly permit their premises to be used for the sale of illicit tobacco or illegal vaping products.
This means that knowledge can be an important issue.
If a landlord genuinely did not know that illicit tobacco was being sold from the premises, that may raise an important issue depending on the allegation and legislation.
However, simply claiming that you did not know will not automatically resolve the matter. The circumstances surrounding what you knew, when you knew it and what steps you took after becoming aware may be relevant.
If you are a landlord who has been contacted by NSW Health or police about illicit tobacco being sold from your premises, you should obtain legal advice before responding. NSW authorities can use closure orders to shut premises where illicit tobacco or illegal vaping activity is identified.
Short-term closure orders can remain in effect for up to 90 days, while long-term closure orders can remain in effect for up to 12 months. A closure order can have significant consequences for a business.
Read more about closure orders here.
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