Federal Member for Cowper Pat Conaghan has called for a drop in the federal tobacco tax and a waiving of the state governments $1100 Tobacco Licensing Fee for legitimate sellers.
Mr Conaghan said it’s time for the Albanese Government to “get real” on dealing with the scourge of illicit tobacco and vape sellers and to realise the impact on legitimate businesses.
In recent weeks, the Mid North Coast MP has visited a number of legal outlets crying out for assistance in removing illegal players from the market.
“On almost every high street right across the Mid North Coast is an illicit tobacco and vape store trading in plain sight,” Mr Conaghan said.
“While it has been great to see the spate of temporary closures over the past few months as a result of dedicated police action, with the closure periods now elapsed, these shops are right back up and running with absolutely no care of future repercussions.”
“To add insult to injury, the stores that are trading cigarettes legally are currently paying $1100 a year in NSW licensing fees for the privilege, while simultaneously watching hundreds of thousands of dollars walk out their doors and into neighbouring illegal enterprises. I’ve heard reports of a single illegal premises clearing thirty grand a day. ”
NSW Health have issued 401 short-term closure orders since November 2025, including stores in Macksville and Coffs Harbour.
Closure order powers allow NSW Health to issue a short-term (up to 90 days) closure order or apply to the Local Court for a long-term (up to 12 months) closure order for premises selling illicit tobacco, or illegal vaping goods, or selling tobacco or non-tobacco smoking products without a valid licence.
From 1 July 2026 a new offence exists for a commercial lessor that knowingly permits premises to be used for the sale of illicit tobacco or illicit vaping goods. The offence carries a maximum penalty of 1 year imprisonment, a fine of $165,000, or both.
Mr Conaghan said the federal government must also decrease the tobacco tax to a “more reasonable” level.
“If a legal product costs up to five times more than an illicit one, then you’re just handing customers to criminal syndicates. Simultaneously, the Federal Government must work with state and territory Governments to enact universal and easily enforceable mandatory sentences to those caught selling or distributing product. This should include landlords.”
“Legal businesses are slugged with licensing fees, display standards and stringent regulations that are enforced by fines. They are literally the ones to get punished while others are flagrantly trading illegally.
“They deserve a break and some recognition that systematic government failures have forced revenue out of their stores and into the hands of criminal gangs.”