Tobacco Legislation (Closure Orders) Amendment Bill

By Stephen Bali MP

09 September 2025

 

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.