We are writing to inform you of important changes to NSW tobacco and vaping legislation that may impact commercial landlords and property owners.
Lease termination powers now in effect
In November 2025, amendments to the Public Health (Tobacco) Act 2008 (NSW) introduced new powers allowing landlords to terminate certain retail shop leases where premises are subject to a NSW Health closure order.
Landlords may terminate a lease by providing the tenant with at least 28 days’ notice if the premises is subject to a closure order. The termination is taken to be for repudiation of the lease by the tenant.
NSW Health now has the power to:
- issue short-term closure orders of up to 90 days where there is a reasonable suspicion that illicit tobacco, illicit vaping goods, or unlicensed tobacco or smoking products are being sold from the premises; and
- apply to the Local Court for long-term closure orders of up to 12 months.
REINSW has been advised that more than 220 short-term closure orders have been issued since these laws commenced last November.
Closure orders are publicly displayed at the premises and may also be published on the NSW Health website. Notice to relevant parties connected with the premises will also be provided, including to owners and occupiers.
These changes provide landlords with a clearer pathway to take action where premises are being used for unlawful tobacco or vaping activities.
New landlord offence passed by Parliament
On 13 May 2026, the Public Health (Tobacco) Amendment (Landlord Offences) Bill 2025 was assented to in Parliament. The Bill has not yet commenced and we will keep you informed when that takes place.
Once commenced (currently expected in July 2026), the legislation will:
- introduce a new offence for commercial landlords who knowingly permit premises to be used for the sale of illicit tobacco or illicit vaping goods; and
- expand lease termination powers to include wholesale premises and retail premises not governed by the Retail Leases Act 1994 (NSW), if a closure order is in effect.
Members should be aware of these changes and consider appropriate due diligence and monitoring practices in relation to tenant activities.
Further information
What this means for members
Commercial agents should remain alert to these changes and work with their landlords to review their leasing, inspection and property management processes, particularly where there are concerns about illicit tobacco or illicit vaping goods being sold from commercial premises.
If you have further questions, then don’t hesitate to reach out to the REINSW Helpline on (02) 9264 2343 or email [email protected].