2 March, 2026
nsw-health-closes-over-100-illegal-tobacco-outlets-ahead-of-tax-hike

New South Wales (NSW) Health Inspectors have issued a total of 105 short-term closure orders to illegal tobacco retailers since the implementation of enhanced tobacco control laws in November 2025. This decisive action comes just prior to a scheduled increase in the federal tobacco excise, which is expected to exacerbate the ongoing shift towards illicit tobacco markets as the price gap between legal and illegal products widens.

Under the regulations introduced in November 2025, NSW Health, in collaboration with NSW Police, has the authority to enforce closure orders lasting up to 90 days for any premises selling illicit tobacco or vaping products without a valid license. In the past ten days alone, inspectors have shut down 30 stores across various regions, including Hunter New England, Murrumbidgee, Nepean Blue Mountains, and multiple Sydney local health districts.

During these enforcement operations, inspectors confiscated approximately 700,000 illicit cigarettes and 3,900 illicit vapes. Investigations into these closures are ongoing, and further enforcement actions, including potential prosecutions, may follow. In one notable case, a tobacco retailer in Rutherford faced closure for the second time after violating a previous order by continuing to sell illegal products.

Strengthening Legal Framework Against Illicit Tobacco

The NSW Local Court can issue long-term closure orders of up to one year if it finds sufficient evidence that illicit goods have been sold or are likely to be sold at a location. These stringent measures are part of a broader strategy by the NSW Government to combat the illicit tobacco trade and enhance public health protection.

Recent legislative reforms include creating new offences for possessing a commercial quantity of illicit tobacco and selling such products, each carrying a maximum penalty exceeding $1.5 million and a potential prison sentence of seven years. Additionally, landlords can now terminate leases when a closure order is enforced, and new offences have been established for falsely claiming licensing and resisting seizures.

The government has bolstered its compliance and enforcement efforts by adding 30 new full-time tobacco inspectors, raising the total number of dedicated staff to 78. This team includes licensing officers and operational policy staff focused on enforcing tobacco regulations across the state.

Members of the public are encouraged to report any suspicious activities by retailers through the complaints portal available on the NSW Health website. More details on closure orders and associated penalties can also be found online.

Government Commitment to Tobacco Regulation

Minister for Health Ryan Park emphasized the importance of these actions in maintaining public health. He stated, “The recent closures should serve as a reminder for those in the community who are doing the wrong thing that we are serious, and they will be prosecuted.” He further noted that the increase in inspector numbers will enhance efforts to disrupt the supply of illicit tobacco, despite the potential for increased market activity following the federal tax hike.

“We are committed to cleaning up our communities and suburbs,” Park added. “Our inspectors actively monitor retailers, and if we find that you are continuing to sell these illicit products after being served a closure order, we will shut you down again and you will face further penalties.”

As the NSW Government continues to ramp up its fight against illicit tobacco, the recent actions reflect a broader commitment to safeguarding public health and ensuring compliance with tobacco laws.