Two stores allegedly selling illicit tobacco in Sydney have been shut down, the first premises to be closed under new state laws cracking down on black market cigarettes and vapes.
The stores on the city’s north shore have been shut down immediately for 90 days and the Minns government can now seek further court orders to close the outlets for 12 months.
New South Wales Health inspectors found and seized what the Minns government described as 3,860 illicit cigarettes and 224 illegal vapes while implementing the closure order at two premises and during inspections of two additional outlets.
Facing a wave of illegal tobacco stores opening up on high streets, the new laws targeting the illegal trade came into effect on 3 November.
NSW Health now has substantial powers to make short-term closure orders of up to 90 days for premises that sell illicit tobacco or illegal vaping goods, or that sell tobacco without a licence.
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The new laws also introduced a new offence for the commercial possession of illicit tobacco with a maximum penalty of over $1.5m and seven years’ imprisonment.
There are also new lease termination powers for landlords where a closure order is in place.
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.
“To be sure, this will take some time as we ramp up our closure activities, but this is just the beginning. More will follow in the coming days, weeks and months.
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, Jim Chalmers, to ease up on tobacco excise, arguing that the 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 $17.6bn hole in the tax base.
The federal government expects to collect $7.1bn in tobacco excise this financial year, according to Treasury, a 57% fall from the record $16.3bn in 2019-20.
So far, Chalmers has refused to budge.
From 1 January 2025 to 27 October 2025, NSW Health inspectors conducted about 1,260 retailer inspections and seized more than 11.8m 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 $18.9m.
In the same period, NSW Health finalised 17 prosecutions with the courts imposing $597,200 in fines related to e-cigarette and tobacco offences.
There are now 28 prosecutions before the courts.
NSW retailers and wholesalers are now required to hold a valid licence to sell tobacco or non-tobacco smoking products as part of the new NSW tobacco licensing scheme.
