Smoke shops shut down a stone’s throw from health HQ
Kat Wong and Rachel Jackson |
Brazen illegal tobacconists have been operating in plain sight of health headquarters as a minister ramps up a crackdown on the illicit trade.
Two shops in Sydney’s north have become the first to be shut down for selling illicit vape and tobacco products under new NSW health powers.
The rules, which come as consumers abandon pricey legal smokes in droves, mean establishments caught operating without a tobacco licence or selling illicit tobacco or vaping products can be shut down immediately for 90 days.
If a breach is found, these stores can be forced to close for up to 12 months.
The two shops are operated by different owners and were within 200m of the NSW Ministry of Health headquarters in St Leonards.
While issuing closure orders during Tuesday’s raid, NSW Health inspectors seized 3860 illicit cigarettes and 224 illegal vapes at both shops.
Health Minister Ryan Park visited one of the stores alongside NSW Police and the state’s chief health officer on Wednesday.
“If you are doing this, it is time to stop,” he told reporters.
“There will be no compromises, there will be no stopping this operation.”
The minister asked the community to be patient, describing the issue as prolific across NSW.
“We need to move heaven and earth to try and break this business model,” he said.
“It’s going to take some time before we’re able to put a real dent in this market.”
Anyone caught selling the products without a valid licence can be fined up to $660,000 for individuals and $880,000 for corporations.
The commercial possession of illicit tobacco can result in a $1.5 million fine, seven years in prison or both under a new offence.
Since the beginning of 2025, NSW Health has seized 11.8 million cigarettes, two tonnes of other illicit tobacco products and 170,000 illegal vaping items.
Fines totalling more than $500,000 have been issued.
Medical groups have warned cheap cigarettes are producing the first rise in smoking rates in a generation, despite a collapse in legal sales.
Tobacco sales across Ritchies IGA’s 156 shops in Victoria, NSW and Queensland have cratered from $300 million to $60 million in four years.
“If people had given up and stopped smoking, you’d say fair enough, that’s well done to the community,” the chain’s boss Fred Harrison told ABC Melbourne radio on Wednesday.
Woolworths’ tobacco sales in the September quarter were down 51 per cent on the same period last year, while Coles had a 30 per cent drop over the past financial year.
It follows sharp increases in the federal tax on tobacco to $1.50 per stick.
But selling tobacco products at legal price points was a key component of disincentivising smoking and vaping, NSW Chief Health Officer Kerry Chant said.
“We do not want a situation where people are able to go, ‘well, actually I can afford three packs today’,” she said.
Local supermarkets and convenience stores were also getting involved in selling illicit products to keep up with neighbouring competition, NSW Police Deputy Commissioner David Hudson said on Wednesday.
But he refused to divulge how many stores were under investigation for illicit tobacco.
The opposition suggested there were “thousands of illegal operators still trading openly” across NSW.
“Let’s be clear, this (St Leonards closure) is a drop in the ocean,” state opposition health spokeswoman Kellie Sloane said.
Retailers and wholesalers must now hold a valid licence if they want to sell tobacco or non-tobacco smoking products.
Tobacconist franchisor TSG was contacted for comment.
AAP
