A Coonabarabran business was closed after an inspection on Thursday 26 June revealed that the entity was operating as a supplier of prohibited tobacco products.

The joint effort by Warrumbungle Shire Council, NSW Health and NSW Police is part of a proactive multi-agency approach being echoed across the state.

New rules designed to help rein in the black market trade come into force tomorrow (1 July).

Warrumbungle Shire Council says observations conducted by their officers indicated "highly unusual out of business hours activities being conducted at the identified premises".

A statement from Warrumbungle Shire Council said they were working with state agencies to address the proliferation of illegal tobacco premises within the region.

"Information received indicated organised syndicates from Melbourne and Sydney are involved in the establishment and operation of illegal tobacco premises and for that reason Warrumbungle Shire Council engaged in a joint agency operation.

"This proactive strategy in monitoring illegal activities led to a comprehensive business compliance inspection at a premise located within the Coonabarabran Business Centre," the statement said.

"NSW Health Officers seized over 230 cartons of prohibited tobacco, several kilos of loose-leaf tobacco known as ‘chop chop’ and hundreds of vapes during the inspection."

Warrumbungle Shire Council says their officers also detected a number of serious fire safety breaches throughout the building, resulting in an Emergency Closure Order being issued against the operator of the business.

Coonabarabran Police Station.

"This joint agency operation underscores the importance of Whole of Government collaborative efforts in tackling illegal activities and safeguarding the community from harmful practices."

NSW Premier Chris Minns last week warned retailers of illegal tobacco that their 'time is up' and those caught would be shut down with offending operators evicted from premises and fined up to $11,500.

''NSW is introducing a new tobacco licensing scheme from 1 July 2025," said NSW Small Business Commissioner Chris Lamonth.

"Under the scheme, it will be compulsory for all retailers and wholesalers who sell tobacco and non-tobacco smoking products to hold a valid licence."

The licence will need to be renewed annually at a cost of $1,100. 

Retailers and wholesalers can apply for a tobacco licence from 1 July.

To continue trading a valid licence application must be submitted on or before 1 October 2025.

If a licence is granted, retailers and wholesalers may continue to sell tobacco and non-tobacco smoking products.

If an application is rejected, retailers and wholesalers must stop selling tobacco and non-tobacco smoking products.

New penalties have been introduced for anyone selling tobacco or non-tobacco smoking products without a valid licence.

The maximum penalties will be $11,000 for a first offence for an individual, or $44,000 for a second or subsequent offence for an individual and $220,000 for a corporation.

Warrumbungle Shire Council confirmed it is currently reviewing potential charges against both the operator and the building owners, "emphasising the commitment to enforcing compliance and ensuring public safety."

Investigators are currently reviewing the evidence with the view of laying charges under the provisions of the environmental planning and assessment act for breaches of the development approval in place and for serious fire safety breaches.

The specific concerns identified related to high levels of combustible and flammable material detected throughout the premises in circumstances where there was a lack of regulated essential fire safety measures.