What does the new tobacco licensing scheme in NSW mean for smoking laws and cancer prevention?   

As of 1 July 2025, the NSW Government have introduced a new tobacco licensing scheme which means retailers and wholesalers who wish to sell tobacco or non-tobacco smoking products need to apply for a licence. 

This scheme will ensure better regulation and compliance monitoring of tobacco retailers, helping to tackle illegal tobacco trade in retail settings. This is something Cancer Council NSW has long advocated for, and we’re pleased to congratulate the NSW Government on the inception of this scheme.  

Tobacco remains the leading preventable cause of death and disease in NSW. In NSW around 6,700 deaths and more than 62,900 hospitalisations are attributed to smoking, with two in three people who smoke dying from their addiction. These social costs of smoking have been estimated at around $8.4billion. 

This blog details the key things you should know about the new licensing scheme.  

Retailers and wholesalers will be required to complete an online application  

All retailers and wholesalers of tobacco and non-tobacco smoking products will be required to apply for and hold a tobacco license and pay an annual fee.  

Applications for a license will be screened to check if the applicant has previously been found guilty of an offence relating to the sale or supply of tobacco or vaping goods. If successful in their application,  

This license can be revoked if the applicant breaks any of the stipulations surrounding its use.  

Anita Dessaix, Director of Cancer Prevention and Advocacy at Cancer Council NSW says, “The introduction of this licensing scheme brings NSW into line with nearly every other jurisdiction in Australia which will ensure retailers are playing by the rules and that public health remains the priority.” 

New penalties have been introduced for anyone caught selling tobacco products without a valid licence 

The maximum penalties will be: 

• For individuals – $11,000 for a first offence, and $44,000 for a second or subsequent offence 

• For a corporation – $220,000 

The revenue collected will help to offset the cost of the scheme and will be used to bolster enforcement.  

NSW Health is doubling its number of authorised inspectors  

In order to strengthen the compliance efforts across the state and ensure greater oversite of tobacco retailers and help tackle illegal tobacco trade in retail settings.  

Adopting this strategy of enhancing enforcement is also hoped to deter illegal operators.  

This licensing scheme goes hand in hand with recent vaping legislation  

The new licensing scheme dovetails with new laws for vapes introduced on 1 July 2024, which mean that all vapes and vaping products, regardless of nicotine content, can only be sold in a pharmacy for the sole purpose of helping people quit smoking or managing their nicotine dependence.   

At Cancer Council NSW, we have been part of getting these laws into parliament  

We have long advocated for stronger licensing laws for tobacco sellers to improve compliance and reduce tobacco availability over time. Our Tobacco Control Unit has created clear, evidence-based resources and provided them to relevant MPs, our Policy and Advocacy team and community teams have also long advocated for this as a solution.  We hope this initiative will act to reduce smoking and thus reduce the incidence of smoking related death and disease.