Penalties apply for individual retailers, wholesalers and corporations for non-compliance with certain sections of the Public Health (Tobacco) Act 2008 and the Public Health (Tobacco) Regulation 2022.
Throughout 2024 and 2025, the NSW Government has introduced a series of legislative reforms to crack down on the sale of illicit tobacco and illegal vaping goods. This has included introducing new offences and substantially increasing penalties for a range of offences. NSW now has some of the highest penalties across any Australian state or territory for the sale of illicit tobacco and illicit vaping goods.
Key new or increased penalties and provisions include:
On-the-spot fines may also be issued by NSW Health inspectors for several offences.
It is illegal for any retailer to sell illicit tobacco. It is also illegal to possess a commercial quantity of illicit tobacco.
From 3 November 2025, penalties were substantially increased for anyone selling illicit tobacco to reflect the seriousness of the offence. New offences and penalties were also introduced for possessing above the commercial quantity of illicit tobacco.
The maximum penalty for selling illicit tobacco and possession of commercial quantities of illicit tobacco is now 7 years imprisonment, a fine of $1.54 million, or both.
From 3 November 2025, the NSW Government’s tough new closure order powers come into force.
New closure order powers now allow NSW Health to issue a short-term (up to 90 days) closure order or apply to the Local Court for a long-term (up to 12 months) closure order for premises selling illicit tobacco, or illegal vaping goods, or selling tobacco or non-tobacco smoking products without a valid licence.
Once a closure order is issued, it will be an offence to sell any products from the premises for the period of the closure order, and no one will be able to enter the premises, except those people with an exemption or with a reasonable excuse.
There will be significant penalties for continuing to sell products from premises subject to a closure order or for entering the closed premises without a reasonable excuse or exemption.
Closure orders will allow NSW Health, in collaboration with NSW Police, to take immediate action against businesses engaging in the illicit tobacco and illegal vape trade.
It is illegal for any retailer to sell vaping goods (e-cigarettes, e-liquids and e-cigarette accessories) regardless of nicotine content except for community pharmacies.
There are strong penalties in NSW for illegally selling vaping goods, including vaping devices, vaping accessories and vaping liquids (regardless of nicotine content).
Maximum penalties for illegally supplying or possessing vaping goods are up to 7 years imprisonment, a fine of $1.54 million, or both.
For information on therapeutic vaping goods available through community pharmacies, please see Pharmaceutical Services - Vaping Goods.
NSW Health Inspectors across NSW closely monitor compliance with the Public Health (Tobacco) Act 2008 and the Public Health (Tobacco) Regulation 2022.
NSW Health is actively increasing the number of inspectors across NSW.
The NSW Government has established a new Centre for Regulation and Enforcement within NSW Health. The Centre is a dedicated unit created to strengthen compliance and enforcement and will work closely with state and federal agencies to ensure a unified approach.
NSW Health inspectors educate retailers, seize and destroy illicit tobacco products and vaping goods, issue warnings and fines, and can initiate prosecutions against retailers and wholesalers that break the law.
NSW Health inspectors conduct random inspections and will also follow up reports from members of the public about suspected breaches by retailers. Inspectors have the power to:
Retailers may ask an Inspector to produce his or her certificate of authority.
For some provisions of the Public Health (Tobacco) Act 2008, a continuing state of affairs may be created, which provides for penalties to be enforced for each day the offence continues. For example, having more than one vending machine in contravention of section 12 of the Public Health (Tobacco) Act 2008 gives rise to a maximum penalty of up to $22,000 for each day the offence continues, in addition to the original penalty of up to $55,000 (in the case of a corporation).
Please see Tobacco and Smoking Control in NSW or call the Tobacco Information Line on 1800 357 412.
*Note: Commercial quantity means: for cigarettes—2,500 cigarettes; otherwise—2.5kg of product.
On-the-spot fine for individual: $250On-the-spot fine for Corporation: $1,250
