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Tobacco Legislation (Closure Orders) Amendment Bill 2025

Published on: September 2025

Record: HANSARD-1323879322-156412

Tobacco Legislation (Closure Orders) Amendment Bill 2025

Second Reading Debate

Business resumed.

Mr EDMOND ATALLA (Mount Druitt) (15:39:13):

I make a contribution to debate and speak in support of the Tobacco Legislation (Closure Orders) Amendment Bill 2025. Tobacco use remains one of the leading preventable causes of death and disease in our State. Over the past 20 years we have seen remarkable progress in reducing smoking rates. Daily smoking among adults has more than halved, from 17.5 per cent in 2004 to just 6.9 per cent in 2024. That is one of the great public health achievements of our time. But we cannot be complacent. A flourishing illicit tobacco trade now threatens to undo decades of progress.

Illicit tobacco is not a minor nuisance. It is a sophisticated, underground industry that fuels organised crime, undermines public health campaigns, and robs legitimate retailers of a level playing field. Most concerning of all, illicit tobacco is significantly cheaper than legal tobacco and therefore especially attractive to those we most want to protect—our young people. The bill amends existing legislation, most notably the Public Health (Tobacco) Act 2008, the Retail Leases Act 1994, the Poisons and Therapeutic Goods Act 1966 and the Criminal Procedure Act 1986. It also makes consequential amendments to the Medicines, Poisons and Therapeutic Goods Act 2022.

At the heart of this legislation is a series of strong new measures. First, the bill introduces a new offence for the possession of a commercial quantity of illicit tobacco. A commercial quantity is defined as 2,500 cigarettes or 2.5 kilograms of tobacco product. Secondly, penalties across the Act are being significantly increased. The sale of illicit tobacco will now carry penalties of up to seven years imprisonment and/or a fine of $1.54 million. These penalties are not aimed at ordinary consumers; they are aimed squarely at large‑scale operators who profit from flooding our communities with illegal tobacco. Other offences such as trading without a licence, falsely claiming to hold a licence or resisting inspectors will also attract much heavier penalties. Together, these are among the strongest tobacco penalties in the country.

Thirdly, the bill introduces closure orders. The health secretary will be empowered to issue short-term closure orders of up to 90 days where there is a reasonable suspicion that illicit tobacco or vaping goods are being sold. The Local Court will be able to issue long‑term closure orders of up to 12 months. Closure orders mean complete closure of the premises, not just a ban on selling tobacco. Fourthly, the bill establishes a new regime for the seizure and destruction of illicit tobacco and vaping goods. Currently, seized products often must be stored for evidentiary purposes, creating high costs and safety risks. The bill allows NSW Health and police to destroy seized goods while still preserving evidentiary integrity through certification. That will save taxpayers money and reduce risks associated with storing degrading tobacco and the dangerous lithium batteries inside vapes.

Fifthly, the bill strengthens the licensing regime introduced earlier this year. It allows the health secretary to revoke or refuse licences if a closure order has been made. It also ensures that a licence is automatically cancelled if a long‑term closure order is issued by the court. Importantly, licence holders will now be held liable for offences committed by their employees or agents. If illicit tobacco is being sold from their premises, the licence holder will be responsible. Finally, the bill enhances information-sharing powers between NSW Health, police, Border Force, Revenue NSW and other enforcement agencies. It introduces new inspector powers to require information, records and answers, while also including safeguards such as protections against self-incrimination.

Of broader significance, these reforms are not being introduced in isolation. They form part of a coordinated whole‑of‑government effort to disrupt the illicit tobacco trade. The Ministry of Health, the NSW Police Force, Border Force, Revenue NSW and other agencies will all have stronger powers to act. The bill sends a clear message: Illegal tobacco has no place in New South Wales. Those who profit from it will face severe consequences. Legitimate traders and retailers will be protected. Our health system will be relieved of a future burden. Most importantly, young people will be protected from the lure of cheap, illegal tobacco. In closing, the bill is not a silver bullet but it is a critical step forward. It will disrupt organised crime, protect legitimate businesses, safeguard public health and uphold the decades of progress we have made in reducing smoking rates. I commend the bill to the House.

Ms JACQUI SCRUBY (Pittwater) (15:45:28):

I speak today in support of the Tobacco Legislation (Closure Orders) Amendment Bill 2025 and thank the Government for this legislation. Locals in Pittwater have been clear: Shut down illegal trade on our high streets and protect our kids in Pittwater. In Pittwater we love our villages but, in just a few short years, our local shopping strips have changed. Cafes and fashion shops have given way to a proliferation of tobacconist-like lolly shops, all veiled in secrecy selling illicit products, whether that be tobacco or vapes. As one constituent wrote that it not only undermines our community values but also poses a serious health risk, particularly to our youth.

The bill is about giving the Government the power to shut down these shops quickly, to have not just fines that are absorbed as a cost of doing business but that these shops are removed from our villages and high streets, and my community welcomes that. Credit where credit is due; that credit is owed to the community, not just my community in Pittwater but communities across New South Wales. As we heard from many members today, people have been speaking up through their MPs and saying enough is enough. These reforms are a direct response from community pressure, like that coming from my community of Pittwater. Although we now have bipartisan support for reform to address this issue, it has come after years of inaction.

We voted when I was a new MP to support the licensing that brings New South Wales back in line with other States. At the time, the community was also cynical: If tobacconists are selling illicit tobacco and vapes but not getting caught, how will a licensing system possibly stop them? That is where enforcement comes in. Laws had to be made to ensure that penalties are enforced and that offenders are closed down. People rightly asked, "If a restaurant could be closed down for its unhygienic practices, why not a shop on a high street engaging in illegal trade?" I will speak to enforcement shortly, but my community welcomes this bill, particularly in regard to the short‑term closure orders of 90 days, the ability for that to be extended to 12 months for repeat offenders, the seizure and disposal powers for illegal stock, and the increased penalties.

Prior to being elected I worked with a Federal member to address this issue. It was not long after being elected that I began to be contacted constantly by constituents asking for these shops to go. I addressed it in my first meeting with the health Minister and the police Minister, and in subsequent meetings and representations. To be honest, at times I did not think those meetings would get us to where we are today. Together with members from the crossbench, we were briefed by the New South Wales Crime Commission. I have had ongoing support and pressure from my community, which has come from all different groups—older people, local residents, school principals, parent groups and children. It has come from local shops, including a Friendly Grocer that had been the victim of a ram raid for cigarettes. It has also come through social media, emails, conversations in the electorate and, of course, petitions. It has come from communities who have come together and met me on village corners to talk about strategies to make this happen at a time when there was not much traction in this space.

Locals were very active in making submissions to the inquiry, as was I. I have also asked questions on notice and given notice of a motion demanding penalties, zoning rules and a taskforce, a position shared by Northern Beaches Council, which passed a similar motion. To put on the record the situation in my electorate, the cheapest cigarettes I have come across cost $9. There are multiple stores within a few hundred metres of public schools in many suburbs, including Bilgola Beach, Avalon Beach and Mona Vale, with one actively marketing to children on Facebook and, when called out by the community, said, "That is what you call being strategic." In Newport, there are six tobacco retailers along a 300‑metre stretch, including those that look like candy stores selling vapes and others that look more incognito. Some of the correspondence I have received includes accounts of not only illicit sales but also active targeting of children, with people working in the store coming out and spruiking to teenagers to come in and buy vapes. The bill reflects much of what my community has been calling for.

I feel that we are ahead of jurisdictions like Victoria, which has been plagued by firebombings, extortion, intimidation and the associated insurance issues, particularly with strata blocks or other shops and retailers on high streets. I did my due diligence. I do not want to wrongly accuse shops and hardworking businesses in my electorate of engaging in illicit trade, but, similar to what the Philip Morris investigation found—which was released at the same time that I was doing my own investigation—the majority of shops that appear to be selling illicit products are, in fact, selling illicit products. Let us make no mistake: Organised crime now controls up to 75 per cent of Australia's black market tobacco trade.

As other members have said, the legislation itself is not a silver bullet—unless we fire the gun, and then it really can be. That gun is enforcement. I have serious concerns that NSW Health, rather than the police, is tasked with enforcement. That concern is shared by my community, which continues to grapple with the reality that, if this is organised crime in action, why aren't the police responsible for enforcement rather than inspectors from NSW Health? Whilst I appreciate that the police are under-resourced and devote much of their frontline resources to important issues like domestic violence, people want them to enforce the issue. Hopefully, that can be swiftly resolved with new laws and targeted enforcement.

Although the Government has twice doubled the number of inspectors that enforce the laws—I understand there were 14 statewide, which was doubled to 28, and the latest numbers are around 48—it still means that each inspector has about 714 stores on their hands to implement enforcement measures on. That is woefully inadequate. On 13 May I called for an inter-agency taskforce to ensure that, like South Australia, we have a whole‑of‑government response and the involvement of police and trading as well as Health. Although the Government announced a similar taskforce in July 2025, we await to hear how enforcement will be operated—whether it will be blitzes suburb by suburb, who will be enforcing and whether the Government will rely on the public for crowdsourcing information and reporting or MPs like me reporting on individual shops, or if they will come to any suburb and get to work, knowing that they will find shops there, such is the ubiquity of illicit trade across New South Wales.

There is more to do. I acknowledge that I have made representations for tobacconist-like shops to be required to have a development application, exclusion zones around schools and so forth. I have discussed it with the Government and understand that there are complexities with such an approach, which I appreciate. As the Government is consulting on the role of landlords in addressing the problem, I note there are going to be further opportunities for more reform on both of those issues. I also note that local landlords in my electorate have actively declined to have such shops as tenants, only for them to pop up down the road, impacting our villages. I will be encouraging my community to make submissions as part of the consultation.

Further reform at a Federal level is needed, with analysis of the role of excise, education of health impacts and balancing cost-of-living pressures for those who choose to smoke and people's personal freedoms. They are all issues being brought to me. Even with this legislation and enforcement, illicit trade will always exist. From a first principles point of view, we cannot continue to allow organised crime to operate on our high streets. A constituent recently said:

The arrogance and complete disregard for the law and for public health is galling. This isn't just dodgy behaviour, it's open defiance of the very protections we're supposed to have in place to keep kids safe from this illegal industry.

Together with the Pittwater community, I support the reform and the bill. I end with a quote from a local high school student, who said:

As a student who attends a school on Sydney's Northern Beaches, I am exposed to the vaping problem daily. It is one of the worst experiences I have had, when I realised that a close friend not only vaped but dealt them and other drugs. When a friend got sick from an overdose of nicotine from their vape - it was horrific and I was in constant fear for their life.

I commend the bill to the House.

Ms LYNDA VOLTZ (Auburn) (15:54:57):

I speak in support of the Tobacco Legislation (Closure Orders) Amendment Bill 2025. It is a serious bill for a serious problem—a problem that is spreading across our suburbs, threatening public health, fuelling organised crime and putting legitimate small businesses under enormous pressure. The bill is not just about tobacco regulation; it is about law enforcement, community safety and protecting the progress we have made as a State in reducing smoking and its devastating health impacts. Let us not kid ourselves: The illicit tobacco market in New South Wales has exploded. What used to be a hidden backdoor operation has become brazen. Shops are opening in plain sight, sometimes with signage still up even after raids, selling illegal cigarettes and vapes just metres away from schools and homes. There is little doubt who is behind it. It is being driven by organised crime.

I draw the House's attention to a disturbing incident that occurred in Auburn recently. A tobacco shop was targeted in an arson attack. The store was torched and the suspected arsonist sped away in a stolen car. It was not a random act; it was organised crime enforcing its grip on turf. It was intimidation. It was the type of lawlessness that shows us just how far the problem has grown beyond simple tax evasion or unlawful trade—and not for the first time in my suburbs. I commend the Auburn Police Area Command for its efforts. It has been relentless in raiding illegal tobacco outlets across the region, but the volume of illicit product it is seizing is staggering. There is now a growing burden, financial and logistical, to store it all as evidence. Tobacco leaf degrades, lithium batteries in vapes are a fire risk and our police are being forced to spend resources simply warehousing illegal product when they should be on the streets investigating the networks behind it. I note the comments of the member for Pittwater. Our police simply do not have the time to go around picking up tobacco as evidence. There is serious crime in our regions that they need to deal with. It is appropriate that NSW Health enforces the sale of tobacco.

The bill addresses that. It gives law enforcement and NSW Health inspectors the powers they need to not just confiscate but shut down operations entirely. It provides for the destruction of seized illegal tobacco and vaping products under a clear legal process. Evidence will be certified and recorded, but the stock will not sit in a warehouse gathering dust or becoming a hazard. Illegal tobacco retailers are not small-time offenders; they are often proxies for large-scale organised criminal enterprises. They operate through complex supply chains, pay no tax, break licensing laws and undermine our public health laws with every packet they sell. The worst part is they make their products cheap, accessible and dangerously appealing to young people.

We have made incredible progress over the past two decades, with the rate of daily smoking among adults in New South Wales dropping from 17.5 per cent in 2004 to just 6.9 per cent in 2024. That is a public health victory, but we risk losing that ground. The Tobacco Legislation (Closure Orders) Amendment Bill 2025 gives us new tools to fight back. At the heart of the bill is the introduction of closure orders, both short term and long term, against premises suspected of selling illegal tobacco or vaping products. Under new part 6A of the Public Health (Tobacco) Act 2008, the Secretary of NSW Health will have the power to issue short-term closure orders for up to 90 days based on reasonable suspicion. A long-term closure order, lasting up to 12 months, can be issued by the Local Court on application by the secretary. The orders do not just prohibit the sale of tobacco; they shut the premises entirely.

If someone breaches a closure order, the penalties are serious—up to $137,500 for an individual repeat offender. Selling tobacco from a closed premises could lead to fines of up to $275,000 and 12 months in prison. Corporations could face fines as high as $1.375 million. It is about disrupting the business model and cutting off revenue, not just seizing stock. The bill also expands enforcement powers. New offences will be created not just for selling tobacco illegally but also for selling any goods from a premises under a closure order. That means that if an illegal operator tries to keep trading by selling snacks or other items while continuing illicit sales under the counter, they can still be prosecuted. Landlords will have powers too. Amendments to the Retail Leases Act 1994 will allow lessors to terminate a lease if a closure order is issued. Importantly, the provisions will apply to both new and existing leases. We are giving property owners the tools to remove bad actors using their premises for criminal purposes.

The bill also introduces three tiers of offences for the possession of commercial quantities of illicit tobacco, set deliberately high to avoid targeting ordinary consumers. The most serious penalty—for possessing 50 times the commercial quantity, equivalent to 125,000 cigarettes—is seven years imprisonment, a $1.54 million fine, or both. There are also strengthened penalties for trading without a licence, falsely claiming to be licensed and resisting seizures by inspectors. Penalties for corporations and individuals will now rank among the toughest in the country. We are sending a message: If you sell illegal tobacco in New South Wales, you will be caught, shut down and prosecuted.

The bill strengthens our licensing regime which came into effect on l July. It allows the secretary to refuse or revoke a licence where a closure order has been issued, or where police intelligence suggests criminal involvement. Critically, the secretary will not be required to disclose sensitive criminal intelligence if it could jeopardise an ongoing investigation. That allows New South Wales police to do their job without tipping off suspects. It also clarifies that licence holders are responsible for the actions of their staff. If someone's employee sells illegal tobacco or vapes, their business is liable, so there is no more passing the blame. The bill brings the Public Health (Tobacco) Act in line with the Public Health Act 2010 by introducing additional powers for inspectors to demand answers, documents and records. Legal protections against self-incrimination are also included.

Finally, a statutory review of the new closure order powers and criminal intelligence provisions will be conducted to assess their effectiveness. A report must be tabled in both Houses, as is common with a statutory review. We are not setting and forgetting; we are building accountability into the legislation. The bill is about protecting communities, it is about fighting back against organised crime and it is about ensuring that the progress we have made in reducing smoking does not go up in smoke because of a wave of unregulated, illegal activity. This is for the people of Auburn and surrounding suburbs who have reported suspicious shops, who have seen police raids and who are rightly concerned about what is happening on their high streets.

This is not the end of the road. The challenges we face with illicit tobacco and vaping products are evolving, but the bill is a powerful step forward. It gives enforcement agencies the tools they need. It protects legitimate retailers. It hits criminals where it hurts. I make the point that the cost to the health budget of increased cigarette consumption and smoking is paid for by the public and the people of New South Wales. That is who the criminals are hurting by having those illegal shops. I commend the bill to the House.

Mr PAUL TOOLE (Bathurst) (16:03:08):

I support the Tobacco Legislation (Closure Orders) Amendment Bill 2025, a bill that finally aims to tackle illicit tobacco and the criminal networks that are flooding our State. Let us be clear: This is not just about cheap cigarettes; it is about tackling the organised criminal gangs that are supplying them and it is about protecting the legitimate businesses that are getting caught up in the crossfire. Criminal syndicates are using illicit tobacco as a currency for money laundering, drug trafficking and violent crime. The consequences of that include firebombings, intimidation, extortion and communities living in fear.

The bill takes a number of important steps. It increases penalties for the sale and possession of illicit tobacco. It introduces tiered offences for commercial quantities, matching closely to what we already have in place for vapes. It will give the secretary the power to issue closure orders of up to 90 days and the courts the ability to extend those orders for up to 12 months. That is currently lacking in New South Wales. We are seeing New South Wales police conduct raids alongside NSW Health. The illegal products are confiscated but the criminal business owners just restock overnight and continue to trade as usual. It is not solving the problem. That is why further powers are needed to shut the doors of those businesses found to be doing the wrong thing.

For far too long, penalties have been little more than a cost of doing business for those engaged in the trade. The reality is that organised crime has factored weak penalties into its business model. A small fine here, a slap on the wrist there, and they go straight back to business as usual. We know it. The criminals know it. And communities are realising that New South Wales has been a weak link in Australia when it comes to law and order and tackling organised crime. This bill does go towards addressing that, but I also remind the House that the Coalition has been pushing for exactly these measures since 2025.

I acknowledge the shadow Minister for Health, who is in the Chamber. It was only in June that we announced our own bill to increase penalties, introduce closure powers and allow landlords to terminate leases. Now, finally, the Government has followed suit. We welcome that but, make no mistake, it is playing catch-up. The Coalition will be moving some targeted amendments to make the measures even more effective. We want to ensure that landlords can swiftly terminate leases without getting trapped in drawn-out disputes. If somebody is running an illegal tobacco business and their shop has been closed, they should not get to hide behind legal loopholes to buy themselves more time. We need to see swift action. That is what our amendments will deliver.

I also bring to the attention of the House the utter failure of the Federal Government to deal with the problem at its source. Illegal tobacco is fundamentally a Commonwealth responsibility. It comes through our ports and our airports, which are meant to be under Federal control. Yet the Federal Government has been missing in action in this space for a long time. In New South Wales we are seeing the consequences of that. We now have nearly 20,000 tobacconists in the State, more than double the number just a few years ago. We are seeing a wave of firebombings across Sydney and now even in regional areas, with dozens of shops set alight. We are seeing police tied up responding to yet another attack and putting their lives on the line because organised crime has been allowed to get a stranglehold in our communities.

The Federal Government has been asleep at the wheel. It has failed to enforce its own laws and cannot seem to stop tons of illegal tobacco from getting into Australia. It has failed to resource its own agencies. And it has failed to take the threat of illicit tobacco seriously. It has left States like New South Wales and agencies like the NSW Police Force to pick up the pieces and try to combat the out-of-control situation. While Canberra considers the issue, families in our suburbs are paying the price. Small business owners live in fear of being targeted. Communities are seeing their main streets turned into crime scenes. Emergency services are putting their lives at risk every week responding to yet another deliberate fire. All of that is being fuelled by the sale of illegal tobacco. It cannot go on.

The bill shows that New South Wales is doing what it can. But we also call on the Federal Government to step up. It must invest in border security and it must work with the State authorities to break the criminal syndicates that are driving the violence. While we might have seen an overall increase in health inspectors over the years, the Opposition has been saying that for far too long there have not been enough health inspectors dealing with the growth of illicit tobacco shops in our communities. Given we started with only 14 health inspectors across New South Wales, we were certainly not going to be in control of this particular situation.

The problem will continue to grow unless the Commonwealth Government is also prepared to play its part. Our police will continue to be stretched thin, managing the constant firebombings, intimidation and violence. That will only escalate, causing more harm to our innocent communities. While I support this bill, I also support tougher penalties, stronger closure powers and giving landlords the right to shut down tenants who are fronts for organised crime. These are good reforms, and the reforms that the Coalition will put forward by amendment are only going to make the bill stronger.

Ms LIESL TESCH (Gosford) (16:09:41):

I contribute to debate on the Tobacco Legislation (Closure Orders) Amendment Bill 2025, which is of particular importance to my community because on 9 August at 1.30 a.m. the coastal town of Ettalong was rocked by a horrible arson attack on a local tobacconist. The attack not only hit that particular business but also shocked the residents of our community and interrupted and disrupted a number of neighbouring businesses—to the point that one of them had to shut down, which was a horrible additional impact. Many people have spoken to me about this issue in our community, and I thank them all for that. I thank also Matt Wales, who has been elected for the twenty-seventh time, unopposed, as leader of the local chamber of commerce. Matt is really upset, on behalf of shopkeepers, about what is going on in the community, and that is completely understandable.

I also thank the shopkeepers who have spoken to me, because nobody wants to see another tobacconist spring up in the community. School principals and teachers have spoken about that with me, as have parents of children and other local residents. They have spoken with me face to face or contacted me on the phone, by email or through Facebook and Instagram. It really does concern our community, so it is nice to be part of a Parliament that is trying to put these shops out of existence from our communities across New South Wales. That has taken quite a number of steps. I have spoken in this Chamber on a number of occasions about smoking prevention, vaping and illicit tobacco. As the child of two smoking parents, I remember sitting in the car while my parents smoked. I spoke on World No Tobacco Day in 2017, recapping Australia's efforts as a world leader in smoking prevention and how measures up to then had managed to peg the smoking rate in Australia to below 10 per cent.

I mentioned how Australia was the first country in the world to introduce mandatory plain packaging for tobacco products, and other countries have since followed suit. I thank Julia Gillard for her brave action in that space. New South Wales banned smoking in public places in 2001. That has gone a long way to decreasing the number of people smoking and affected by tobacco. Back then, I spoke about the health risks and the way State and Federal governments were working to staunch the use of tobacco and tobacco products. But then a new scourge found its way to our shores in the form of e-cigarettes and vapes. I commend the Minister for Health and the New South Wales Government for their swift action in recognising that communities across our State are increasingly concerned about the use of vapes, particularly among young people, and for passing the Public Health (Tobacco) Amendment Bill (No 2) 2024.

As vape shops sprang up in metro areas and across our regional communities—I know vape shops have been opening in all the major centres in my electorate—the previous Government did absolutely nothing. Now it is our turn, and we have acted. We acted on the sale of illicit tobacco and illegal vapes, and we are acting again. The Tobacco Legislation (Closure Orders) Amendment Bill 2025 will amend the Public Health (Tobacco) Act 2008, the Retail Leases Act 1994 and the Poisons and Therapeutic Goods Act 1966, and make consequential amendments to the Medicines, Poisons and Therapeutic Goods Act 2022 and the Criminal Procedure Act 1986. I thank the Minister and his team for pulling all of that together.

The bill will introduce new offences for the possession of a commercial quantity of illicit tobacco, with penalties mostly aligned with vaping goods offences under the Poisons Act. A new offence has been created for the possession of a commercial quantity of illicit tobacco, which will carry a penalty of up to seven years and/or a $1.54 million fine. Penalties for the offence of selling a commercial quantity of illicit tobacco have been likewise aligned to seven years and/or a $1.54 million fine. It is finally the case of the punishment fitting the crime. The sale of illicit tobacco products is a multimillion‑dollar concern that preys on the vulnerable, undercuts legitimate businesses and dodges taxes.

This legislation means New South Wales will bring in some of the toughest penalties in the country for the sale and commercial possession of illicit tobacco, and grant substantial powers for inspectors to close premises found to be in breach of the new rules. That is a great new step. These new penalties and offences will complement the tobacco licensing scheme, which came into effect on 1 July 2025. That scheme ensures that accurate information is collected on tobacco retailing and wholesaling activities to support enforcement efforts, deter tobacco retailing businesses from operating outside the law, and provide greater oversight of the tobacco retail industry.

Other penalties for offences relating to tobacco, non-tobacco smoking products and vaping goods will also be increased to ensure penalties are broadly proportionate. Of note in this bill is the ability for premises to be shut down. The Federal member for Robertson and myself had a meeting with East Gosford shopkeepers, who raised particular concerns about the behaviour of customers attending the new tobacco shop that recently opened in East Gosford. We attended with the real estate agent who leased the shop to the tobacconist. If it is shut down, that lease can now be terminated, which is a really good step.

The bill will allow for the introduction of short-term—up to 90 days—and long-term—up to 12 months—closure orders for premises selling illicit tobacco or illegal vaping goods, or selling tobacco without a licence; create new offences and penalties for anyone who breaches these closure orders, including for entering closed premises or selling products from closed premises; provide lease termination powers for landlords where a closure order is in place—this is a super important step; and introduce new nation-leading offences for falsely claiming to be licensed, resisting seizure and attempting to retake seized products. In addition to the tough measures in this new legislation, the New South Wales Government will also commence a targeted consultation process for new offences for landlords who knowingly lease their premises to illicit tobacco and vape suppliers.

From a public health point of view, the cost of smoking is again a talking point for the community. That is really sad in 2025, when we know the consequences of smoking. There is anecdotal evidence in my electorate of people recommencing smoking because under-the-counter cigarettes are so cheap—at around $10 compared to $45—that they can afford to smoke again. That is a dreadful outcome from an illegal activity gone rogue. This legislation contains some of the toughest penalties in the country. It will send a clear message to bad actors that are selling illegal tobacco and vaping goods that it will not be tolerated in New South Wales. We are disrupting the business model of large-scale criminal concerns that are profiting from addiction, tax evasion and putting young people at risk. I thank the Minister and his team for their work on this issue. This is another step towards deterring the people that are doing the wrong thing in our community. I commend the bill to the House.

Mr DAVID HARRIS (WyongMinister for Aboriginal Affairs and Treaty, Minister for Gaming and Racing, Minister for Veterans, Minister for Medical Research, and Minister for the Central Coast) (16:17:08):

— I contribute to debate on the Tobacco Legislation (Closure Orders) Amendment Bill 2025, which I welcome. I met with a delegation of some of my local independent supermarkets a couple of years ago. They indicated to me what was yet to become a huge problem but has now become a huge problem: the sale of illicit tobacco and other goods. At the time, the supermarkets rightly said that they were being undermined because they were forced to charge full price for cigarettes while these other operations were selling the very low‑priced illicit tobacco products.

That put severe economic pressure on their businesses, and they asked the Government to look at introducing tough laws to respond to these illegal sales. I am pleased to say that the Minister has worked really hard on that. This has been difficult because the issue covers a range of different areas of government. But I think we have struck a really good balance to send a clear message to these illegal operations that it is just not on. After having that meeting with the supermarkets, suddenly in my electorate tobacco shops sprung up everywhere. In suburbs such as Gorokan and Charmhaven there are almost as many tobacco shops as there are other shops. They stand side by side. It is not hard to tell that what their business model is—otherwise they would all quickly go broke.

I note that Health raided a couple of those shops on a fairly regular basis. But it was a bit of a joke on Facebook that two hours after they closed, they reopened fully restocked. Sitting somewhere fairly close were containers with material ready to restock those premises. The operators knew that they would get a slap on the wrist and a bit of a fine but then could just go on with business as usual. This bill sends a much more serious message that this type of activity is not on. I particularly welcome—and, as I said, the local independent supermarkets called for these—strict provisions to close these premises and also put pressure on the landlords to ensure that they accept some of the risk if they lease their premises to people engaging in illegal activities. This bill gets the balance right. It is important that a strong message is sent that businesses cannot operate in this way.

The bill also makes sure that our community is protected. One of the shops at Charmhaven was firebombed. The bombing was caught on CCTV. The perpetrators were not very clever. The video showed clearly that they actually set fire to themselves. One was running down the road with his arm on fire. Apart from the funny side of that, it is really serious, because it affected not only the shop that was firebombed. The hairdresser next door, which was quite popular, had to close for a while because the whole building was affected. We just cannot have these sorts of illegal activities and gang-related retribution and competition going on in our communities—it is just not on—because it affects the wider community.

I know that it will take some time to get the licensing and those sorts of things rolled out. But if the Federal Government acts in concert with the States and works as hard as it can to stop these illegal substances coming into the country, it will be good for the whole community. I know it is difficult. The Government does capture a fair amount. The figure I saw was that about one-fifth of it was actually coming through. If we as a State support the Federal Government by having tough laws and closing these illegal operations down, then it will be good for the whole community.

My electorate has been affected by this issue. Constituents who have noticed the proliferation of tobacco stores have indicated to me that the nature of the business model was obvious, and they were asking for the Government to respond, as were, as I said, the local businesses who are operating legally in an environment that was putting them under more and more financial pressure. I welcome this bill. I thank the Minister and his staff for the work they have done on it. I know it has not been an easy road. In my portfolio we do a lot of regulation and licensing. It is not an easy thing to do and to keep track of. I just hope that, as a community, we can see the benefits of this bill soon. Stronger laws will make a difference. I know that that will benefit our whole community.

Mr STEPHEN BALI (Blacktown) (16:23:19):

I support the Tobacco Legislation (Closure Orders) Amendment Bill 2025 and I thank the Minister for its introduction. The bill has been introduced to strengthen tobacco control powers to tackle illicit tobacco sales. These changes are in response to the rapidly evolving tobacco landscape. The amendments in this bill include harsher penalties for the sale of illicit tobacco; new offences for commercial possession of illicit tobacco; the introduction of closure orders for business premises selling illicit tobacco and illegal vapes or selling tobacco without a licence; new offences and penalties for anyone who breaches closure orders, including for entering closed premises or selling products from closed premises; lease termination powers for landlords where a closure order is in place; new powers for the disposal of illicit tobacco products and illegal vaping goods; new powers for NSW Health inspectors to obtain and provide information as part of undertaking their functions; and changes to facilitate more effective information sharing between health and enforcement agencies.

These new penalties and offences complement the tobacco licensing scheme in New South Wales which came into effect on 1 July. These amendments are part of a broader commitment to protecting the community by cracking down on illegal tobacco sales and ensuring compliance with New South Wales's strong tobacco control laws. I have been listening to many of the contributions so far and, I suppose, in a technical way, ditto. Instead of repeating all the same points, I will present another side of this industry which has not been mentioned in this Chamber. Some family-based businesses refuse to deal with illegal sales of tobacco. Their business model has virtually collapsed with the rise of illegal sales, coupled with the massive increase in government taxes and regulation changes.

The Federal Government earlier this year changed the packaging rules. From 1 April only cigarettes with the new markings can be sold. We might sit here in this Houses and say, "So what? The tobacco companies will just swap old stock with new stock." This may seem a logical and acceptable way to go about doing business, but this is far from the truth. For Coles, Woolworths or any other major retail chain, the three major tobacco companies have done stock swaps, and they continue business as normal. But family businesses or sole traders are still waiting for the stock credits and have been told that there will a limited stock exchange at some time in the future.

Many of these small businesses were forced over many years to carry a wide range of stock, from the slow‑moving, little-heard-of stock through to the high-turnover stock from each of the three major suppliers. Some businesses that have been in operation for 35 or more years as successful, compliant tobacconists had stock levels worth over $700,000. These businesses are being slowly crushed by the illegal market, high Federal taxes and Federal changes to packaging laws, all of which are completely outside of the control of legitimate tobacconists, who have now been screwed over by Philip Morris, British American Tobacco and Imperial Brands.

Businesses have been asking the big three suppliers for months as to when the stock will be collected and credited. They were told to sell through as much as they can and continue not to buy any stock so as to run down all relevant compliant stock. The cut-off was 1 April but they were able to sell the stock until 1 July to allow time to sell it down. When 1 July arrived, the family businesses had to clear all stock off the shelves, lock it in the storeroom and deem it unsaleable, as it was then illegal. During all this time, the market for compliant tobacco sales has been declining dramatically. Legitimate business volume is currently down by 75 per cent, just barely keeping the businesses running. The big three suppliers then changed their minds and decided that they would take back only nine to 15 cartons per retailer. Why were the big retailers—Coles and Woolworths—looked after while the small businesses were left to rot?

Here we are today, passing important legislation to address the illegal tobacco market, by imposing steep penalties, while small, legitimately operating businesses are being ripped off by and at the mercy of Philip Morris, British American Tobacco and Imperial Brands. We cannot wax lyrical in this Chamber about how we are trying to stamp out illegal tobacco sales when small legitimate businesses are being crushed by the illegal market and by the big three suppliers. These small businesses have effectively subsidised Coles and Woolworths and other major retailers. The major retailers have had their stock exchanged, but legitimate small businesses have been screwed over.

Our Government has to look at the Fair Trading Act or work with the Federal Government to make sure that the bullying tactics of Phillip Morris, British American Tobacco and Imperial Brands do not continue. I call on Phillip Morris, British American Tobacco and Imperial Brands to live up to their social corporate responsibility—if they have any—and look after the small businesses they sell to, not just the giant retailers. Everyone deserves a fair go, particularly the small, legitimate, family operated tobacconists being smashed by the illegal trade, government taxes and changes to regulations. Whilst I support the bill, more has to be done to stop the multinationals of Phillip Morris, British American Tobacco and Imperial Brands from screwing over legitimate small businesses.

Ms FELICITY WILSON (North Shore) (16:30:08):

I contribute to debate on the Tobacco Legislation (Closure Orders) Amendment Bill 2025. Like my Opposition colleagues, I support this legislation. I acknowledge that this bill comes after a range of legislation primarily introduced by the member for Vaucluse, who has been leading the policy debate and contributions on this issue. We have seen a proliferation of illicit tobacco and vapes being sold in every single community across New South Wales. At least 11 illegal tobacconists have been identified as operating in my North Shore electorate community, but it is not just my community—it is the case in every single community across this State.

It is not just a matter of public health but also a challenge of law and order for each of us. A worrying trend of the interrelation between illegal tobacco and organised crime that is spilling out across communities is particularly observable in other jurisdictions like Victoria, predominantly, but also in South Australia. Tobacconists have been subject to arson attacks as a direct result of gang activity through organised crime. We have heard about firebombing attacks and people's toes being cut off. These are not episodes of extreme and outlandish American television shows; this is occurring in communities across Australia and is directly linked to illegal illicit tobacco and vaping.

The Opposition's concern is that it has taken too long for the Government to get to this stage. The Government needs to take additional steps to ensure that we are safe not only as a community against the crime and law and order challenges but also as individuals—particularly young people and future generations—and protected from the public health scourge of addiction to tobacco products. This Government has not yet taken the steps to ensure that we are keeping our society safe in both regards.

I recognise the work of the member for Vaucluse, and shadow health Minister, in championing these changes and introducing her own legislation. It is the greatest form of flattery when people steal your homework. But I know the member for Vaucluse is gracious enough to accept that, even though she is in opposition, she can change the legislation of this State through the Government taking on her work. I recognise the work that she has done and the amendments that she will move to improve this legislation. She has already flagged the intention to improve the legislation to ensure that lessors will be able to terminate a lease without protracted legal action, in the case of the application of closure orders under this legislation. She will also put forward amendments to ensure that on-the-spot fines can be applied in these circumstances.

We want to ensure that this is robust legislation. We want to ensure that it meets the needs of our local communities but also breaks the back of organised crime and prevents, particularly, at-risk young people from adopting the kinds of habits that were completely snuffed out over previous generations. NSW Health data indicates that around 20 per cent of people aged 16 years or over have used a vape or e-cigarette at least once, and 8.5 per cent currently use vapes and e-cigarettes, whether daily or occasionally. That is a significant increase from 2020. When the data is recut, we can only assume that increase will be even higher.

I have spoken in this House before about the tobacconists located very close to public transport, schools and corridors in my North Shore electorate community. They often masquerade as broader convenience stores, without much particular convenience material available for purchase within them. As I said, 11 illegal tobacconists have been identified in my electorate. However, on the Military Road bus corridor near the major bus interchange—some 300 metres from my office in Neutral Bay and 250 metres from a public school—there are currently five tobacconists.

I do not say that those tobacconists are illegal, nor that any or all of them are selling illicit tobacco or illicit vapes. But it is incredibly concerning to us that these types of products are available and accessible across our community, in proximity to very vulnerable groups. A lot of the marketing is done with bright colours, slogans and terminology that are meant to draw in young people and create an addiction from a young age. We have to take strong action to prevent that becoming the norm for this young generation. I support the legislation the Government has put forward and I am very grateful the Government has followed the lead of the member for Vaucluse in doing so. I will also support the amendments of the member for Vaucluse. I look forward to seeing what more will be done to ensure ongoing public health and public safety from crime.

Mr DAVID MEHAN (The Entrance) (16:35:24):

I am pleased to make a contribution to debate in support of the Tobacco Legislation (Closure Orders) Amendment Bill 2025. This Government bill has been introduced to strengthen tobacco control powers to tackle the sale of illicit tobacco and illicit vaping goods. These changes are in response to a rapidly evolving tobacco landscape. Many members have commented in today's debate on the proliferation of tobacco sellers in their community. We do not know whether those businesses are selling illicit tobacco and vaping goods or legal tobacco products. But this bill gives the health department the powers it needs to make sure that if illicit tobacco is being sold in our community, it can be controlled firmly and quickly.

There has been a proliferation of tobacco sellers in my community. I am sure all members have had this mentioned to them by members of their communities. Associated with that have been instances of crime on the Central Coast more generally. I am pleased to say they are not occurring in The Entrance electorate. There have been two firebombings of tobacco sellers, which tends to suggest that there is illegal activity afoot. As well as that, those who may be selling illicit tobacco are unfairly competing with those small businessmen and retailers who are legally selling a tobacco product and following all the regulations.

The amendments in this bill include harsher penalties for the sale of illicit tobacco; new offences for commercial possession of illicit tobacco; the introduction of closure orders for business premises selling illicit tobacco and illegal vapes or selling tobacco without a licence; new offences and penalties for anyone who breaches closure orders, including for entering closed premises or selling products from closed premises; lease termination powers for landlords where a closure order is in place; new powers for the disposal of illicit tobacco products and illegal vaping goods; new powers for NSW Health inspectors to obtain and provide information as part of undertaking their functions; and changes to facilitate more effective information sharing between health and enforcement agencies.

The bill amends several Acts, including the Public Health (Tobacco) Act 2008 and the Retail Leases Act 1994, as well as minor consequential amendments to the Criminal Procedure Act 1986, the Medicines, Poisons and Therapeutic Goods Act 2022 and the Poisons and Therapeutic Goods Act 1966. The new penalties and offences complement the New South Wales tobacco licensing scheme, which came into effect on 1 July 2025. This bill sends a strong message to the New South Wales community that this Government intends to act strongly and swiftly to respond to the illicit tobacco trade that has infiltrated our communities. Enforcement is an integral part of NSW Health's response to tobacco control. Furnishing inspectors with these greater powers and introducing new offences and greater penalties is critical to supporting the success of the new closure order regime and, more broadly, the tobacco regulatory framework.

The bill enhances inspectors' enforcement powers and introduces new offences and harsher penalties. A new offence of possessing commercial quantities of illicit tobacco will be introduced. There will be tiered offences depending on the amount of illicit tobacco possessed above the commercial quantity. The maximum penalty for this offence will range from a fine of $308,000, two years imprisonment, or both, for possessing up to 10 times the commercial quantity of illicit tobacco, up to a fine of $1.54 million, seven years imprisonment, or both, for possessing over 50 times the commercial quantity of illicit tobacco. A commercial quantity of illicit tobacco is defined in the bill to mean 2,500 cigarettes, or 2½ kilograms of product, with the ability for a larger amount to be prescribed by the regulations. Setting the commercial quantity at this level will ensure the offence targets people who are holding large amounts of illicit tobacco for sale, rather than individuals who possess illicit tobacco for personal use.

The bill will also introduce penalties for the sale and packing of illicit tobacco, selling tobacco products without a licence, falsely claiming to be licensed, and attempting to retake or interfere with seized goods. These penalties are amongst the toughest in the country and send a clear message to bad actors that selling illicit tobacco and illegal vaping goods is wilful noncompliance and will not be tolerated. The penalties reflect the seriousness with which the New South Wales Government and community takes the sale of illicit tobacco and vapes. The penalties send a strong signal to those businesses and individuals that continue to do the wrong thing that the Government will not stand by and watch them profit from exploiting New South Wales residents addicted to tobacco products.

As well as these new powers, I put on record that NSW Health and our enforcement agencies are already acting. In 2024 some 21 prosecutions were undertaken in relation to e-cigarette and tobacco offences. In the first six months of this year, the Ministry of Health finalised seven prosecutions. A further 22 matters are currently before the courts. I also note that significant assistance is available through the NSW Health website. Members can direct constituents to that website if they wish to report tobacco sellers in their community who are considered to be doing the wrong thing. Such reports will aid intelligence gathering and the enforcement of laws that prohibit the selling of illicit tobacco in our community.

The website also provides tools to help people talk to others in the community about the dangers of smoking and vaping, or to deal with their own desire to cut down on smoking and vaping habits. This is a good bill. It builds on the work this Government has already done to introduce the first licensing regime in the State's history. It builds on the good work the health Minister has been doing to enforce the crackdown on the selling of illicit tobacco. I commend the bill to the House.

Dr JOE McGIRR (Wagga Wagga) (16:42:56):

I make a brief contribution in support of the Tobacco Legislation (Closure Orders) Amendment Bill 2025. When I first raised this issue last year and foreshadowed my intention to introduce a private member's bill requiring the licensing of tobacco sellers, the black market in tobacco was barely causing a ripple of concern at government level in New South Wales. Illegal tobacco was then a very serious problem, and it has grown much worse since. At the time, legitimate business owners in Wagga Wagga raised this problem with me. They were losing vast sums of money to criminal operators selling cheap, illegal tobacco in fly-by-night stores. To its credit, the Government responded quickly to introduce tobacco licensing. As has been noted, that was a first in this State, and I congratulate the Government on those efforts. It was a welcome improvement to the situation but, unfortunately, it has not been enough to tackle the issue.

We now have further, stronger legislation that I support and welcome. I acknowledge the role of the Opposition, and particularly the shadow Minister for Health, for making sure that this legislation has come forward. It is incredibly important. A number of members have spoken about examples in their electorates. Last week Mr Neville Jolliffe, a business owner in my electorate who first raised this issue with me, contacted me with some alarming statistics. His tobacco sales for July 2025 fell by $86,000 compared with July of the previous year. Sales for August 2025 fell by $61,000. Mr Jolliffe said that those statistics are not surprising when you consider that there are six—yes, six—illegal tobacco shops operating in the main street of Wagga Wagga alone. He said:

As you can see by the numbers, there has been an incredible drop in sales, therefore less tax for the government! But sadly, the increase in legal sales has continue to feed illegal tobacco and taken it to the next level. No wonder we are losing $6 BILLION in tax revenue and the government is thinking of other ways to tax hard working Australians.

It is true that the action of the Federal Government has created a huge financial and legal headache because of its aggressive taxing of legal tobacco to the point where smokers choose to feed their addiction more cheaply by turning to the black market. This has led to literally explosive consequences in Victoria, where the firebombing of tobacco stores is a weekly, almost daily, occurrence. I warned last year that this violence could spread to New South Wales. Sadly, in fact, it has. Recently, we saw a devastating arson attack at Moruya that destroyed two businesses. Illegal tobacco wars are suspected to be the root cause of that. If we do not take this action now, I fear that we will see more arson attacks with potential loss of life in our State.

I applaud the fact that the Government has created a new, dedicated enforcement unit with 48 staff to tackle this issue, but I note a couple of items. The first is that the enforcement of this remains with NSW Health, which is very diligent and committed in this space; there is no question about that. But this is organised crime, and I continue to be puzzled that NSW Health leads on this. I know that police support NSW Health and say that they will get behind it. I know that NSW Health is doing what it is doing, but it puzzles me that with the clear involvement of organised crime there is not more active involvement from the police. There seems to be a view that this is a legal rather than illegal drug and therefore it is not police work; it is a health issue. Of course, it is a health issue, but the proceeds from the sale of illegal tobacco are going to organised crime and to illegal drugs and those marketing them. Sadly, that is the reality, and it concerns me greatly.

My second observation is that I am now coming to the view that the Federal Government should reduce its tobacco excise. It has consistently refused to do so; consequently, the State has to take the action that it is taking. Unfortunately, I suspect that until we reduce the excise and provide consumers with a reasonable alternative we are going to struggle. The Commonwealth is not going to collect more money. The other problem is that there has been decades of diligent work by our State to reduce smoking rates and to educate people about the evils of smoking. Part of that has been the packaging, the signage in stores and the fact that legal operators know not to sell to minors and know what the law is regarding displaying the warnings and so on. We now have people accessing tobacco from people who do not care about health warnings.

There are no warnings for illegal tobacco. People do not care who they sell to or how they sell it. All the traction that we have gained is slowly slipping away. So it is not just an excise issue. It is not just an organised crime issue, which is absolutely critical. It is also very much a health issue. I applaud the measures the Government has taken to act on this today. I congratulate the Minister on the work he's done. I note that the Government is undertaking consultation on changes to the law relating to landlords and tobacco licensing. I welcome that discussion as well. That is important.

At the end of the day, the bill will pass and we will see the action that takes place and the increased measures. This is an incredibly serious issue. It is not just about income and organised crime; we are risking the health of our citizens, particularly our young people, in this State. We need to consider working with the Commonwealth on its excise laws. Leaving that to one side, I support the bill. I congratulate the Government and thank the Opposition for its very hard work on the bill. I commend the bill to the House.

Mr ADAM CROUCH (Terrigal) (16:49:41):

I speak in support of the Tobacco Legislation (Closure Orders) Amendment Bill 2025. I note that the Minister for Health and the shadow Minister for Health are in the Chamber. I commend both of them. There has not been much commendation from Government members for the shadow Minister, but I commend both of those two excellent parliamentarians for working together. It took us a while to get the Government there, but at the end of the day we got it over the line to act on the issue. I note the commentary from the member for Wagga Wagga, which was very accurate. He said that it did not happen overnight; it has not just popped up. It is interesting that all the members from the Central Coast have spoken to the bill this afternoon but none of them wanted to talk about tobacco when previous bills were before the House. I checked on that. When the Opposition introduced bills about tobacco, those members were nowhere to be seen. At the end of the day, they are supporting a good bill into which the member for Vaucluse has had quite a bit of input. I foreshadow there will be some Opposition amendments that improve the bill further.

I share the same concern that the member for Wagga Wagga articulated, which is that the issue comes under NSW Health. I met recently with the Brisbane Water police command and its team, and they too are at a little bit of a loss as to how illicit tobacco that is controlled by organised crime is being dealt with by the health department. I share the member's concern that, realistically, police resources need to be increased significantly. Police are frustrated. They would probably like to do more. They know who is involved and they know it is an organised crime issue. They see the associated violence being perpetrated on people. On the Central Coast, we have seen the firebombing of stores that are competing against each other. Let us make no bones about it, the issue is very clearly one of organised crime. That is because billions of dollars are attached to illegal tobacco.

The Federal Government has exacerbated the problem with its excise on legal tobacco coming into the country. But the reality is that we cannot blame the Federal Government for this Government's failure to act, despite the member for Wagga Wagga and the Opposition raising concerns. I had a bit of a chuckle when the Minister said in his second reading speech that the Government was quick to act on the issue. I would hate to see it be slow to act because the process has been long and drawn out. The issue could have been dealt with a lot faster, but the Government had to be brought to the table kicking and screaming by the member for Vaucluse, the Opposition and the member for Wagga Wagga. At the end of the day, the Government got there, which is a great. I commend the Minister and the member for Vaucluse for working together. I believe the Government will accept most of the amendments, and they will further strengthen the bill.

I am a little perplexed that an organised crime issue will be a NSW Health responsibility. NSW Health does a fantastic job but, frankly, the full resources of the NSW Police Force should be used on these criminals who are the worst of the worst. We know that outlaw bikie gangs are involved in illegal tobacco. People are being terrorised in their own homes and communities. Organised crime groups are behaving in an appalling manner because they know that significant amounts of money are attached to illegal tobacco. They have been able to get away with it because of a lack of resources to police the problem. The Coalition has foreshadowed amendments to the bill. They are small amendments to support landlords to terminate leases, which is important because they are caught in the middle. They are being intimidated by lessees who have criminal links, and they are afraid that if they terminate a lease they might be taken to court for wrongful termination.

The bill is good legislation. It does the right thing. It increases the penalties. I know the member for Vaucluse would have liked to have gone further with the penalties and make them even harsher, but the bill is a good start. Again, I commend the Government for coming to the table and indicating that it will accept the amendments. It is important that we send a very clear message to organised crime and say, "We see what you are doing. You will be stopped, you will be caught and you will be prosecuted." Those who are victims of illegal tobacco, especially landlords, will be protected, which is so important because many of them are too afraid to speak up because of the potential threats against them. Now they can act quickly, knowing they have the full support of the legislative process. Let us be clear, the Opposition has been pushing for tougher laws around tobacco since 2024.

Again, as the member for Wagga Wagga said, this is not just a crime issue but also a major health issue. Legal operators were doing the right thing with cigarettes, including using plain packaging, locking them up out of sight and not promoting them. We spent decades tackling tobacco addiction in this country, and we were finally seeing good results. Tobacco consumption was dropping, especially among young people. That is now on the increase. I bumped into somebody from a community represented by the member for The Entrance who said he paid $11 for a packet of cigarettes. The member should realise that he has a few illegal tobacco shops in his electorate if a packet of cigarettes costs only $11. That is a good example of what is being perpetrated on people. Sadly, we are seeing a rise in the consumption of tobacco by young people, especially young females, which is very concerning because we know how incredibly addictive it is and how dangerous it is for long-term health outcomes. The bill is a good piece of legislation that will be made better by some very sensible amendments. I commend the great work done by the Opposition, with the Government, on the bill. I commend the bill to the House.

Mrs WENDY TUCKERMAN (Goulburn) (16:56:00):

I contribute to debate on the Tobacco Legislation (Closure Orders) Amendment Bill 2025. Illegal tobacco is not an abstract problem. It is in our towns and neighbourhoods, and it is damaging the very fabric of our communities. It fuels organised crime, it undercuts the small and family-owned businesses that play by the rules and, worst of all, it deliberately targets our young people. In my electorate, we have seen the scale of the problem firsthand. In Goulburn, police and NSW Health seized more than 180,000 illegal cigarettes and nearly four kilograms of loose tobacco from just two shops. In the wider Hume region, enforcement operations uncovered 1.5 million illegal cigarettes, more than a dozen kilograms of loose tobacco and hundreds of illicit vapes. Those are not small, isolated incidents. There is an organised black‑market economy that is taking hold in regional New South Wales.

Our communities know the illegal tobacco shops. They are annoyed by them. They pop up in local shopping strips, often operating for a short time before closing their doors and reopening just down the road under a different name. Residents see it, parents worry about it and legitimate retailers despair at having to compete against it. The sense in our community is that those operators are thumbing their noses at the law because the penalties and the enforcement simply have not been strong enough. That is why the bill is so important. It introduces serious penalties for the sale and possession of illicit tobacco and crucially gives authorities the power to shut those shops down. For too long, communities like Goulburn and others across the Southern Tablelands have watched as dodgy tobacconists flout the rules. The bill provides the means to act.

While many of my colleagues have detailed the health implications, I point out that the victims are not only the consumers who are sold dangerous, unregulated products but also the local newsagencies, convenience stores and licensed retailers who follow the law, pay their taxes and serve our communities. They are forced into an unfair battle with shadow operators backed by organised crime. The health stakes are also immense. Smoking remains the leading cause of preventable death in New South Wales, killing 6,700 people every year. Two in three smokers will die from their addiction. As the Cancer Council and Lung Foundation have consistently warned, the rise of cheap, illicit tobacco and vapes risks undoing decades of public health progress. I also stress that this is not only a health issue but also a law-and-order issue. The products are flooding into our towns, with profits flowing straight into the hands of organised crime networks. Our rural and regional communities, where oversight is already stretched thin, are being targeted.

The provisions in the bill, including closure orders of up to 90 days extendable for 12 months, serious fines for landlords and operators, and the alignment of penalties with those for illicit vapes, are welcome and overdue. But laws on paper are not enough. The real test for the Government will be whether those powers are enforced. Communities do not want announcements; they want action. They want to see dodgy tobacconists shut down, not shifting their stock to the next street over. I thank the many constituents who have contacted my office, including parents and local retailers, and raised concerns with me. I particularly acknowledge the work of law enforcement in our region. Despite limited resources, they have worked tirelessly with Health to hold the line against these operators.

Illicit tobacco is a public health crisis, it is a law and order crisis, and it is an insult to every small business in my electorate that does the right thing. The bill sends a clear message to those who sell illegal tobacco in New South Wales that their doors will be closed, their licence will be stripped, and they may well go to jail. Our communities deserve nothing less. I acknowledge the work of the shadow Minister for Health, the member for Vaucluse, who has taken the time to visit my electorate to speak with my constituents and understand the impact on my community. Her work has forced this Government to finally act and present the bill to the House. I support the bill and the Opposition's foreshadowed amendments to the bill.

The DEPUTY SPEAKER (Ms Sonia Hornery):

It being 5.00 p.m., pursuant to standing and sessional orders, debate is interrupted for the public interest debate. I set down resumption of the debate as an order of the day for a later hour.