UPDATE: New South Wales has intensified its battle against illegal tobacco shops, launching an urgent crackdown that involves a dedicated unit of 48 compliance officers within its health department. This significant action was announced just hours ago, as health officials ramp up efforts to combat the burgeoning black market for tobacco products.
At a budget estimates hearing today, Health Minister Ryan Park emphasized the immediate need for this initiative, stating, “We have a hell of a long way to go before we can say that this job is finished.” The newly formed Centre for Regulation and Enforcement will collaborate with the Australian Border Force, the Therapeutic Goods Administration, and local police to enhance intelligence sharing and enforcement strategies.
In the first half of 2025 alone, NSW Health has seized approximately 90,000 nicotine vapes, e-liquids, and pouches, valued at around $3 million. Authorities also confiscated over 6 million cigarettes and more than one tonne of other illicit tobacco products, totaling about $6.8 million in value. Additionally, more than 150 fines were issued during this period, showcasing the scale of the operation.
The crackdown comes amid alarming projections regarding tobacco tax revenue, which is expected to plummet to $7.4 billion from $12.6 billion in the previous year. Minister Park pointed to the federal government’s spiraling tobacco excise as a catalyst for the rise in illegal sales. “What I don’t want to see now is an uptake in illegal tobacco use or vaping use,” Park stated, highlighting the risks associated with uncontrolled market growth.
Nationwide, data from the Australian Taxation Office reveals that over 23 tonnes of illicit tobacco and nearly 7 million cigarettes have been seized. The state government argues that federal taxation policies have inadvertently fueled the illegal market, prompting immediate regulatory action.
In a bid to further strengthen enforcement, a bill currently before parliament proposes severe penalties for offenders. This legislation would introduce a new offense for the commercial possession of illicit tobacco, carrying a maximum penalty of seven years in prison or a $1.5 million fine. Selling any unlicensed tobacco could incur fines of up to $660,000, while landlords will be empowered to evict tenants found selling illegal products.
With these urgent measures, NSW aims to eradicate illicit tobacco sales and safeguard public health. The situation remains fluid, and further developments are expected as the government continues its fight against this pressing issue. Stay tuned for updates as authorities work to dismantle these illegal operations.
