NSW cracks down on illicit tobacco with new licensing scheme

Under the new Tobacco Licensing Scheme, businesses wishing to sell tobacco or non-tobacco smoking products must apply for a licence through the Service NSW website using their MyServiceNSW account. The application process requires an online submission, a recent criminal records check, and the payment of a yearly licence fee.

A crucial element of the new scheme is the rigorous screening process for applicants. Potential licensees will be vetted for any prior convictions related to selling or supplying tobacco or vaping goods under state, territory, or Commonwealth legislation. A history of such offences could lead to the refusal of a licence.

NSW Minister for Health, Ryan Park, emphasised the scheme’s intent, stating it “will help clean out bad actors in NSW’s tobacco market and level the playing field for small businesses who do the right thing.”

He added, “It used to be the case that regardless of your history, you’d just need to let the NSW Government know of your intention to sell tobacco. Under this new scheme, you’ll need to actively seek permission, and if we find you’ve got a history of doing the wrong thing, the government’s got the power to say no.”

NSW Chief Health Officer Dr Kerry Chant highlighted the importance of the new scheme for public health. “The new Tobacco Licensing Scheme will enable us to better monitor retailers and wholesalers to ensure they are doing the right thing and to take appropriate action if they are not,” Chant said.

She also reiterated the serious health risks associated with tobacco. “Tobacco use remains one of the biggest factors contributing to premature death. I acknowledge it’s not always easy, but I encourage people who smoke to think about quitting both for themselves and for their loved ones,” Chant added.

“Quitting smoking remains the most beneficial thing an individual can do to improve their health.”

The new scheme also reinforces existing regulations regarding vaping products. In NSW, vaping goods are strictly limited to sales from pharmacies, regardless of their nicotine content. It remains illegal for all other retailers to sell vaping goods. Notably, pharmacies are exempt from needing a tobacco licence to sell these products.

While the scheme officially begins today, a grace period has been extended until 1 October 2025, allowing businesses ample time to apply for their necessary licences. After this date, significant penalties will apply to anyone caught selling products without a valid licence. Individuals face fines of up to $11,000 for a first offence and $44,000 for a second or subsequent offence, while corporations could incur a hefty maximum penalty of $220,000.

NSW Health is doubling its team of authorised inspectors to bolster compliance and crack down on illegal sales, increasing their numbers from 14 to 28. The recruitment of these additional 14 enforcement officers is already underway, with onboarding expected throughout July. These new inspectors will join existing authorised personnel across NSW Health Public Health Units.

NSW Health inspectors have been actively cracking down on illicit tobacco and vaping products. In the first three months of 2025 alone, around 400 inspections led to the seizure of over 3.2 million cigarettes, 700 kg of other illicit tobacco, and more than 55,000 illegal vaping items, collectively valued at about $5.5 million. In 2024, inspectors conducted over 2,000 retail inspections, seizing more than 13.5 million cigarettes, over 3,100 kg of other illicit tobacco (worth an estimated $15.1 million), and over 295,000 illegal nicotine vapes and related products (valued at over $9.5 million).

Businesses seeking support with their licence applications can contact the Tobacco Information Line on 1800 357 412. Further details on the new Tobacco Licensing Scheme, including application procedures, are available on the NSW Health website.