With major crackdowns across New South Wales, selling illegal tobacco or vaping products is no longer treated as a minor regulatory issue; it is now considered serious criminal conduct. They introduced some of the toughest enforcement powers. One of the most serious and immediate consequences is a short-term closure order.
The new closure order powers came into place on 3 November 2025.
What is a short-term closure order?
A short-term closure order is a power that allows authorities to:
- Immediately close a business premises on the spot, and
- Stop the sale of illegal tobacco or vape products.
An NSW Health secretary or delegate can issue a closure order if there is a reasonable suspicion that illicit tobacco or vapes have been or are likely to be sold.
The local Court can issue a long-term closure for up to a year. It must be satisfied that illicit tobacco or vapes have been or are likely to be sold. To satisfy this, there must be reliable evidence to meet the higher threshold. This can include businesses such as tobacconists, convenience stores and small retail shops.
How long can a business be closed?
Short-term closure: Up to 90 days in many cases and can take effect immediately.
Long-term closure: Authorities may apply to a court for closure of up to 12 months.
What happens when a closure order is issued?
If your business is subject to a closure order:
- You must stop any form of trading immediately
- The premises may be physically secured or monitored
- You will be prohibited from operating or entering the premises
Your business can be shut down before you are found guilty of any offence.
Breaching a closure order is a serious offence and will result in further penalties.
If one enters a closed premises, the maximum penalty for the first offence is $82,500, and $150,525 for a second offence. The only defence for entering closed premises is that the person did not know, and it is not reasonable to expect them to know.
Penalties for the continuation of selling the illegal goods
If a person sells any illegal tobacco product, non-tobacco smoke products, or vaping goods from premises that are subject to a closure order, they may be prosecuted and are liable to a maximum penalty of:
- First offence: An $82,500 fine and/or 6 months imprisonment,
- Subsequent offence: A $137,500 fine and/or 12 months imprisonment.
Can my tobacco license be cancelled?
If a long-term closure order is made by the Local Court, any retail or wholesale license associated with the premises is automatically cancelled.
If a short-term closure is issued, the secretary or their delegate may revoke an existing license or refuse to issue or renew a license for the premises.
Why are the powers so strict?
The NSW government are now taking a zero tolerance approach to illegal tobacco and vape sales. From November 2025 to the start of March 2026 NSW Health Inspectors have issues 105 short-term closure orders. Public health concerns and loss of significant tax revenue have shifted enforcement to immediate intervention.
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Sources:
NSW Government, Over 100 short-term closure orders issued to illegal tobacconists as tobacco excise increases tomorrow, published 2 March 2026 (accessed 30 March 2026 at 14:35) https://www.nsw.gov.au/ministerial-releases/over-100-short-term-closure-orders-issued-to-illegal-tobacconists-as-tobacco-excise-increases-tomorrow