Landlords in Australia leasing commercial premises to tobacco or vaping retailers are navigating a rapidly evolving legal landscape, with significant changes in New South Wales (NSW) and Queensland increasing their responsibilities and powers. The regulatory environment is shifting to combat the illicit trade of black-market cigarettes and vapes, placing new scrutiny on property owners.
In New South Wales, the enforcement of new tobacco retailing laws began on November 3, 2025, marked by the closure of two Sydney stores for alleged illicit sales. Crucially for landlords, the Tobacco Legislation (Closure Orders) Amendment Act 2025 grants them new powers to terminate leases if a tenant is subject to a closure order for operating without a valid license or selling illicit tobacco. This signals a major shift, meaning landlords who ignore non-compliance could face regulatory scrutiny themselves.
Queensland has enacted similar measures with the Tobacco and Other Smoking Products (Dismantling Illegal Trade) and Other Legislation Amendment Act 2025, effective November 24, 2025. This law expands enforcement powers to close non-compliant premises and creates civil liability for landlords who knowingly or recklessly allow illegal tobacco activity. It also provides landlords a statutory right to terminate leases when a premises is under a closure order.
In contrast, Victoria has not yet introduced specific landlord powers to terminate leases based on licensing status. While a tobacco business licensing scheme commenced on July 1, 2025, enforcement won’t begin until February 1, 2026. Notably, this scheme currently excludes e-cigarettes and vapes, which fall under federal laws.
Across these states, the message is clear: landlords must be proactive. Lease negotiations should now include detailed compliance clauses and clear procedures for license breaches. Verifying that tenants hold required licenses and operate legally is no longer just due diligence—it’s a critical risk management strategy.
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