During the period, 12 prosecutions were finalised with A$597,200 in fines for e-cigarette and tobacco offences; 27 prosecutions were awaiting appeal in the District Court.

Reforms build on earlier 2025 powers that let inspectors close stores selling illicit products for up to 90 days and pursue longer court-ordered closures.

NSW leaders link illegal tobacco activity to gaps in excise policy, framing it within a national debate on tobacco taxation and illicit trade.

Health officials report inspections of about 1,260 retailers since January, with seizures totaling more than 11.8 million cigarettes, over 2,000 kg of illicit tobacco, and about 170,000 illegal vaping goods, valued around A$18.9 million.

In the same period, 17 court prosecutions have resulted in nearly A$600,000 in fines for tobacco and vaping offences.

NSW is pushing a new criminal-offence bill that holds landlords liable if they knowingly permit illicit tobacco or vaping shops to operate from leased premises, with penalties up to one year in prison or a A$165,000 fine.

A new tobacco licensing scheme requires retailers to display a valid license at purchase, with fines from A$11,000 to A$44,000 for non-compliance; roughly 6,000 retailers were licensed when the scheme began.

The offence targets landlords who fail to notify authorities or take steps to evict tenants running illicit tobacco and vaping businesses, as part of a broader crackdown on Sydney’s growing black market.

Health authorities say licensing and closures are designed to curb illegal activity, with continued enforcement emphasized even after initial shutdowns.

There is uncertainty about unlicensed retailers, with early estimates around 19,000, a figure likely inflated by former retailers who did not deregister.

Experts warn that simply lowering cigarette taxes to compete with illicit sellers will not resolve the illicit tobacco problem.

Two retailers in St Leonards were shuttered last week under the expanded powers, marking the first use of these new enforcement tools.