Decision details

Moved by Councillor Gannon, seconded by Councillor Arkins – 

It is resolved that:

(A)      Council note:

(i)         for every McDonald’s in NSW there are 60 tobacconists;

(ii)        over the past few years our high streets have been transformed with the proliferation of tobacconists, which unashamedly sell illegal tobacco and e-cigarettes. There are 13 now operating in Kings Cross alone;

(iii)      data on the availability of illicit tobacco in Australia is limited. Industry estimates indicate that illicit tobacco consumption accounted for 28.6% of the total tobacco market in Australia in 2023, up from 11.8% in 2012;

(iv)      what we do know is that tobacco excise collection has collapsed to its lowest level in 14 years, blowing a $17.6 billion hole in the tax base (excluding GST revenue);

(v)       illegal cigarettes are as cheap as $12; the average cost of regulated tobacco is around $50;

(vi)      the Tobacco Legislation (Closure Orders) Amendment Bill 2025 was passed with unanimous support in the NSW Parliament, and includes stronger enforcement powers, increased penalties, and closure orders, including:

(a)       fines of up to $1.5 million, prison terms of up to 7 years, forced closures of businesses that sell elicit tobacco and/or ecigarettes; and

(a)       granting the Secretary of the Ministry of Health and the Local Court power to order the closure of premises that are involved in the sale of illicit tobacco and vapes; and

(B)      the Lord Mayor be requested to write to the NSW Premier to affirm the City’s support for this legislation and request a compliance blitz in the City of Sydney.

The motion, as varied by consent, was carried unanimously.

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