Landlords Now Face Criminal Liability
A crucial update from Baybridge Lawyers for commercial landlords, property managers, and retail operators across NSW
The NSW Government has launched its strongest enforcement push yet against illicit tobacco and illegal vaping products, and the consequences now reach far beyond retailers. For the first time, landlords themselves can be held criminally responsible if illegal sales occur on their premises.
For property owners and managers, this marks a profound shift in legal exposure and a clear warning: inaction is now a liability.
While the amendments have not yet commenced, their passage is imminent, and the enforcement message from the Government could not be clearer
New Landlord Offence: “Knowingly Allowing” Illegal Trading
Under the Public Health (Tobacco) Amendment (Landlord Offences) Bill 2026, landlords commit a criminal offence if they knowingly allow tenants to sell illicit tobacco or illegal vapes and fail to act; whether by reporting the conduct or enforcing lease rights.
Penalties include:
- Up to 1 year imprisonment,
- $165,000 in fines,
- Or both.
The Government has been explicit: property owners who “turn a blind eye” to illegal sales will be prosecuted.
Why This Enforcement Wave Is Happening
NSW’s latest legislative reforms targeting illicit tobacco and vaping products are being backed by a clear increase in enforcement resources. To support the new laws, the Government is appointing 30 additional full‑time tobacco inspectors, expanding the state’s compliance team to 78 officers. This staffing increase is intended to ensure the strengthened regulatory framework is actively enforced across NSW.
In the last year alone, NSW Health carried out more than 1,260 inspections, resulting in the seizure of 11.8 million illicit cigarettes, over 2,000 kg of illicit tobacco, and 170,000 illegal vapes. With the appointment of 30 new inspectors, enforcement activity is likely to increase.
More Compliance Pressure Than Ever Before
This new offence forms part of a sweeping enforcement framework that includes:
- A mandatory tobacco retail licensing regime,
- New offences for possessing commercial quantities of illicit tobacco (up to $1.65 million in fines or 7 years’ imprisonment),
- NSW Health’s expanded powers to impose 90‑day short‑term and 12‑month long‑term closure orders,
- Offences for resisting seizure or falsely claiming to hold a licence.
In addition to the new offences, landlords now have expanded rights to terminate leases when closure orders are issued, however, it remains essential that they act promptly to protect themselves.
Need Legal Guidance? Baybridge are here to support you
The regulatory landscape around tobacco and vaping products in NSW is changing faster than ever and landlords now hold responsibilities that were previously unthinkable.
If you own or manage commercial property, now is the time to review your risk exposure, tighten compliance, and ensure your leases and processes align with the new laws.
The Baybridge team can assist with:
- Compliance audits and risk reviews,
- Drafting and improving lease compliance clauses,
- Advising on regulator correspondence and investigations,
- Defending criminal charges and navigating closure orders.
At Baybridge, we’ll help you stay ahead of the law, protect your assets, and shield your business from escalating enforcement risks.
This article was written by Josh Patch, Paralegal | Baybridge Crime.
