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ARTICLE · 15 NOVEMBER 2025

Mandatory Tobacco Licensing Scheme Affecting Retail Leases

Holding Redlich
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The closures mark a significant milestone in the state's crackdown on black market cigarettes and vapes.

AustraliaReal Estate and Construction

Two Sydney stores have become the first to be shut down under New South Wales' new tobacco retailing laws, following allegations of illicit tobacco sales. The closures mark a significant milestone in the state's crackdown on black market cigarettes and vapes, and signal the beginning of active enforcement under new laws that commenced on 3 November 2025.

Landlords who lease premises to tobacco retailers are reminded of their new powers under the Tobacco Legislation (Closure Orders) Amendment Act 2025 No 51 (Amendment Act) to terminate leases where tenants fail to hold a valid tobacco licence for the store they operate.

The NSW tobacco licensing scheme

The NSW tobacco licensing scheme replaced the old retailer notification scheme on 1 July 2025 and requires retailers selling tobacco or non-tobacco smoking products to hold or apply for a valid tobacco licence for every physical and online store they operate by 1 October 2025.

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