Two stores allegedly selling illicit tobacco in Sydney have been shut down, the first premises to be closed under new state laws targeting black market cigarettes and vapes. The stores on the city’s north shore have been closed immediately for 90 days, and the New South Wales government can now seek further court orders to close the outlets for 12 months.
New South Wales Health inspectors found and seized 3,860 illicit cigarettes and 224 illegal vapes while implementing the closure order at two premises and during inspections of two additional outlets. The new laws, which came into effect on 3 November, give NSW Health substantial powers to make short-term closure orders of up to 90 days for premises selling illicit tobacco or illegal vaping goods, or selling tobacco without a licence.
The state health minister, Ryan Park, said: “I can confirm that today we have begun raiding and temporarily shutting down a number of shopfronts suspected of not complying with our tough new tobacco and vaping laws. … This is just the beginning. More will follow in the coming days, weeks and months.”
The new laws also introduced a new offence for the commercial possession of illicit tobacco with a maximum penalty of over $1.5 million and seven years’ imprisonment, as well as new lease termination powers for landlords where a closure order is in place. NSW Health inspectors are being supported by NSW police to carry out raids and issue closure orders on allegedly offending businesses.
According to research by tobacco giant Philip Morris, there are more than 500 stores illegally selling tobacco in NSW. The Minns government has been urging the federal treasurer to ease up on tobacco excise, arguing that high taxes have created an environment for organised crime to flourish in a black market. Tobacco excise collection has collapsed to its lowest level in 14 years, blowing a $17.6 billion hole in the tax base.
From 1 January 2025 to 27 October 2025, NSW Health inspectors conducted about 1,260 retailer inspections and seized more than 11.8 million cigarettes, more than 2,000kg of other illicit tobacco products and about 170,000 illegal vaping goods with a combined estimated street value of about $18.9 million. In the same period, NSW Health finalised 17 prosecutions with the courts imposing $597,200 in fines related to e-cigarette and tobacco offences.
