Australia: NSW Begins Enforcement of New Tobacco and Vape Licensing Scheme
The grace period for the New South Wales (NSW) government’s new Tobacco Licensing Scheme has ended, ushering in a new era of stricter enforcement for retailers and wholesalers of tobacco and non-tobacco smoking products, including vapes. As of October 2nd, businesses must hold and display a valid tobacco license to legally sell these products, with significant penalties now in effect for non-compliance.
The Minns Labor Government introduced the scheme after the previous administration failed to implement the reform, leaving NSW as the last state in Australia to do so. A three-month grace period from July 1st to October 1st was provided for businesses to apply for the necessary license. Retailers who submitted a valid application on or before the deadline can continue to trade until they are notified of the outcome.
This licensing scheme is a key part of the government’s strategy to combat the booming illicit tobacco and vape trade. A new dedicated unit within NSW Health, the Centre for Regulation and Enforcement (CRE), will lead compliance efforts, working closely with state and federal agencies like the NSW Police Force and Australian Federal Police.
“The system the previous Liberal Government left behind meant there was no way to clearly identify tobacconists selling illegal cigarettes,” said Minister for Health, Ryan Park. “My message to those doing the wrong thing is that sooner or later, we will come for you.”
The crackdown is being fortified by the recently passed Tobacco Legislation (Closure Orders) Amendment Act 2025. Expected to take effect in the coming months, this Act dramatically increases penalties for selling products without a valid license, with fines for individuals rising from a maximum of $44,000 to $660,000, and for corporations from $220,000 to $880,000. It also introduces powers to issue short-term (up to 90 days) and long-term (up to 12 months) closure orders for premises selling illicit goods.
Furthermore, new offenses for the commercial possession and sale of illicit tobacco will carry maximum penalties of up to $1.54 million, seven years’ imprisonment, or both.
To obtain a license, businesses must apply online via their MyServiceNSW account, provide a recent criminal records check, and pay an annual fee. The NSW Health Secretary will consider an applicant’s history of offenses related to tobacco or vaping goods and any false or misleading information provided. NSW Chief Health Officer, Dr. Kerry Chant, stated, “The Tobacco Licensing Scheme gives us better oversight of retailers and wholesalers… to ensure they are doing the right thing and to take appropriate action if they are not.”
The scale of the illicit market is significant. In the last financial year alone, NSW Health inspectors seized over 14 million cigarettes, 2,800 kgs of other illicit tobacco, and over 200,000 illegal vaping goods, with a combined estimated street value of around $21.8 million. These new measures aim to provide regulators with the tools needed to effectively disrupt this trade and protect public health.
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