Government plans to enforce licensing for tobacco retailers and impose stricter penalties to combat illegal sales

In a decisive move to tackle the escalating black market for illegal cigarettes, the New South Wales (NSW) government is poised to implement significant changes to retail laws governing tobacco sales. The proposed regulations will require all tobacco retailers to obtain a license and will significantly increase fines for those caught selling under-the-counter products. This initiative aims to curb the growing prevalence of illicit tobacco sales across the state.

The planned legislation, which will be debated in the NSW Parliament in the coming months, is slated for introduction on July 1, 2025. It comes in response to the alarming rise in illegal cigarette sales, which have been fuelled by a thriving black market controlled by organised crime syndicates. Last year alone, the national Illicit Tobacco Taskforce confiscated a staggering 1.4 billion illegal cigarettes, highlighting the scale of the issue.

The presence of numerous tobacco shops, many of which appear to operate without legitimate means of profit, has raised concerns among both consumers and legitimate retailers. These establishments, often empty and quickly opened and closed, contribute to the visibility of the illicit trade, with some experts suggesting that Australia’s high tobacco excise has driven smokers towards the black market, adversely affecting both retailers and taxpayers.

In recent years, the number of registered tobacco retailers in NSW has surged dramatically, rising from 14,500 to 19,500 in just four years. This explosion in numbers correlates with the burgeoning black market, particularly in rural and regional areas where illegal cigarette sales have gained a foothold. However, the government has struggled to quantify the extent of retailer participation in this illicit trade, primarily due to a lack of stringent regulations.

Currently, the process to open a tobacco shop in NSW is relatively simple; aspiring retailers need only an Australian Business Number (ABN) and must notify NSW Health to obtain a Tobacco Retailer Notification number (TRN). This minimal red tape has allowed numerous dodgy operators to thrive, prompting legitimate retailers to call for action.

In light of these challenges, the NSW government’s new licensing requirements and increased penalties aim to ensure that only responsible retailers can sell tobacco products, thus protecting consumers and the integrity of the market.

As the government moves forward with these proposed changes, stakeholders across the state are keenly watching the developments. The outcome of the parliamentary debate will determine the future landscape of tobacco retailing in New South Wales and the effectiveness of the measures in combating illegal sales.