Landlords across the state could be in the line of fire, with a new bill introduced to parliament, requiring them to "police" tenants who may be illegal tobacconists.

The NSW Government is working on what they say is one of the last pieces of the puzzle to rein in the trade in illicit tobacco and vapes which has spread to almost every corner of the state.

Yesterday, 12 November, Minister Ryan Park introduced an amendment to the 2008 Public Health Tobacco Act to prohibit landlords permitting the sale of illicit tobacco and vaping products on their premises.

The move looks likely to put landlords on edge right across the state.

The amendment targets landlords who knowingly lease to illegal tobacco and vape sellers.

A landlord will be legally required to report the tenant to NSW Health authorities, otherwise they will face penalties of up to one year imprisonment, a $165,000 fine or both.

Minister for Health, Ryan Park says the authorities will make it known to the landlords if their tenants are caught selling the substances.

"If we carry out inspections and we issue a 90 day closure [to the tenants], we will make sure the landlord is also notified at that period of time that we've issued that closure," he says.

"If that business, after the 90 days, is up and re-operating again, and the landlord gave them a second chance, we would want that landlord to really have a think about whether they are confident that that particular business has changed."

Mr Park hopes adding the landlord watchdog to the equation will lead to a drop in numbers of the illegal outlets.

"I'm not going to promise that this is going to happen quickly," the Minister says.

"These stores are very, very much widespread, so it is going to be a challenge for us.

"What we expect of landlords across NSW right now to be starting to do is have those conversations with their lessees, with those small business operators, and if they are suspicious, making it very clear to them both verbally and in writing that this is illegal and needs to stop."

Ryan Park says the bill amendment will minimise the opportunities for illegal tobacco and vape sales to flourish [IMAGE: SUPPLIED].

This bill amendment follows other measures already introduced including new categories of offences, ramping up inspections and compliance activities, and increasing penalties to $1.5 million and up to seven years' imprisonment for those caught possessing a commercial quality of illegal tobacco.

However, in response to the latest proposed changes, landlords say there needs to be clear communication between authorities and building owners.

The Western Plains App spoke to one landlord, who owned a retail premises in a local community but doesn't live in the region.

They said they had no real indication their new tenant was operating illegally, even after their premises were raided.

"We were never notified by police after the raid was done," they said.

"Why are the tobacconist allowed to continue trading after a police raid and shut down only for a few days?"

The landlord said they were never advised whether illegal tobacco or vapes were found and were surprised when the tobacconist was able to re-open in nearby premises.

"The law should be: after a police raid the landlords are notified and the tobacconist are fined and closed down for good.

"They should have to pay out the full term of the lease and the ATO (Australian Taxation Office) should take their ABN off them."

The landlord said there are already disincentives in place to stop people taking on risky tobacco-related tenants.

"For instance the insurance is increased ten times if a tobacconist is the tenant and also for a building next door to a tobacconist, their insurance is increased heaps as well."

Although the bill was introduced just one day ago, the landlord believes illicit tobacconists will already be finding loopholes.

Cigarettes purchased for $15 on 12 November 2025 in the main street of a Western Plains town.

"Why are they using Landlords to make it difficult for the tobacconist to trade when they can do it themselves?

"They are always getting lots of entities with the ATO so therefore the ABNs are very important to them.

"I think that if one person has a number of entities They should have all their ABNs cancelled."

Real Estate Institute NSW CEO Tim McKibbin says proposed bill amendment expects landlords to police the activities of their tenant.

Mr McKibbin highlights tenants who are following leasing contracts are entitled to quiet enjoyment, meaning the lessors could have no knowledge of the tenants involvement with illicit trades.

"Quite enjoyment means that the landlord and the landlord representatives aren't in there looking around your premises."

"It turns the landlord into something of a policeman."

Tim McKibbon says the landlords are taking liability if they lease to these tenants [IMAGE: SUPPLIED]

But he said the whole situation may be avoided if insurance companies refuse to cover the tenants who sell illegal tobacco.

"Insurance companies just won't insure the tenant so it is very common for the landlord to insist that the tenant have insurance protecting the premises," he says.

"If the landlord can't get insurance for the premises, then that would mean that the tenant can't stay there."

He says the problem may solve itself.

There is no current timeline for parliament to address the Bill amendment.