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The NSW Small Business Commissioner has welcomed stronger enforcement against illegal tobacco sales.
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Tougher illicit tobacco penalties to ensure ‘responsible’ SMEs
29 October 2024
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The NSW government has announced reforms to tackle illegal tobacco sales, which the NSW Small Business Commissioner welcomed following increased SME complaints.
Changes made by the NSW government included tougher penalties, more enforcement officers and a new tobacco licensing scheme for retailers.
Commissioner Chris Lamont said he had previously made a submission to the NSW parliamentary inquiry that advocated for co-ordinated enforcement against illegal tobacco sales.
“I have advocated for stronger enforcement and penalties on behalf of businesses unable to compete with untaxed and non-compliant tobacco products,” Lamont said.
“Stronger enforcement and penalties are needed to support those businesses that play by the rules and help safeguard our communities from the dangers of illegal tobacco sales.”
The commissioner noted the submission was made after multiple SME owners who had legally supplied tobacco products contacted the commissioner to report “black market” concerns they were unable to compete with.
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The submission said this was a concern as it reduced tax revenue that could have been invested in health services and it undermined the efficacy of regulation which intended to ensure responsible supply and harm minimisation.
“Small businesses selling tobacco and related products that comply with relevant law and regulation face a serious disadvantage relative to those operations not remitting tax or complying with other laws and regulation,” the submission said.
“While current regulatory settings establish a framework for the supply of tobacco and nicotine products, suppliers operating within this framework perceive a lack of robust and effective enforcement which threatens their viability.”
The NSW government said based on the submission and complaints that were received, the licensing scheme would require retailers and wholesalers of tobacco to hold a tobacco licence and pay an annual fee.
A licence would be able to be refused or revoked if the applicant had been convicted of a tobacco or vaping product-related offence.
The proposed legislation would include penalties of up to $220,000 for corporations and $440,000 for individuals for selling tobacco without a licence under the new scheme.
In the submission, the commissioner also said the exploration of policy approaches which also targeted the source of any mislabelled nicotine products such as vapes would also be welcomed.
Lamont said the commission was impressed suggestions had been taken into account, despite potential complications with effective enforcement which could have arisen under the tobacco and e-cigarette laws.
The NSW government said it has done what was believed necessary to help tackle the problem of small businesses doing the right thing when selling tobacco products.
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