I speak in support of the Tobacco Legislation (Closure Orders) Amendment Bill 2025. I thank the Minister for Health for urgently bringing this critical bill to the Parliament. I also acknowledge and thank the many members of the inner west community—parents, carers, teachers, health workers, small business owners and many young people—who have contacted me with their concerns about this issue. Their voices have been clear and consistent: They are deeply concerned about the proliferation of illegal tobacco and vape stores in our neighbourhoods, and they want action.

This bill is a response to that call. It is a practical, an enforceable and a community-driven step forward. It is also a necessary one, given the scale of the problem we now face. In the first half of this year alone, NSW Health seized 1,100 kilograms of illicit tobacco and 90,000 nicotine vapes, e-liquids and pouches, with a combined street value of nearly $10 million. These numbers are staggering, but they tell only part of the story. In my community in Dulwich Hill, a small and vibrant shopping village, there are four separate tobacconists operating within one 500‑metre stretch. This is not normal or sustainable. No legitimate tobacco market could support this level of retail density.

The sheer concentration of these stores defies logic, economics and public health principles. What we are seeing is not a retail trend; it is a symptom of a black market that is growing rapidly, operating with impunity and undermining the safety and character of our communities. A recent New South Wales parliamentary inquiry found that illicit tobacco now comprises up to 50 per cent of all tobacco sold in Australia—up from 14 per cent just six years ago. This black market is worth $10 billion annually and its operators are increasingly violent. In the past two years there have been 125 fire bombings of tobacco shops in Victoria and some 50 in other States, including New South Wales. These are not isolated incidents, and they are not just a public health issue. This is a law enforcement issue and a community safety issue. It is a test of our resolve.

This bill gives us the tools to act. It amends the Public Health (Tobacco) Act 2008 by introducing new penalties for the sale and possession of illicit tobacco, with a maximum penalty of over $1.5 million or seven years imprisonment. It empowers the Secretary of NSW Health to refuse, revoke or not renew retail and wholesale licences if a closure order has been made for a premises. It authorises inspectors to seize tobacco products suspected of being involved in offences, and allows courts to order the forfeiture of seized products upon conviction. It introduces short-term closure orders of up to 28 days and long-term closure orders of up to 12 months for premises involved in illicit sales, and also empowers landlords to terminate leases where illegal tobacco sales occur.

The bill strengthens the licensing scheme introduced on 1 July 2025. Retailers must now hold a valid licence to sell tobacco. Selling without one can result in fines of $11,000 for individuals and $220,000 for corporations. NSW Health is doubling its number of authorised inspectors to ensure compliance. These are not abstract powers. They are practical, enforceable measures that will allow us to shut down bad actors and protect our communities. But this bill is not just about enforcement. It is also about restoring the character of our neighbourhoods and protecting our children. It is about preserving the public health gains that our country has fought so hard to achieve. We have a proud history of public health reform in this country.

Since the launch of the National Tobacco Campaign in 1997, smoking rates have plummeted. Within five years, adult smoking reduced by 23.7 per cent. By 2022 just 10.6 per cent of adults were daily smokers, down from 22.4 per cent in 2001. Nearly three in five Australians have never smoked. These gains were not accidental. They were the result of decades of hard work—plain packaging laws, graphic health warnings, advertising bans, excise taxes, smoke-free laws and mass media campaigns. Our country was one of the first to ratify the World Health Organization's Framework Convention on Tobacco Control. We have led the world in tobacco control, but today these gains are seriously at risk.

Most disturbingly, these businesses are targeting our children. In my electorate, constituents have raised serious concerns about two stores on Marrickville Road. One, called Labubu Stop and Shop, featured signage of Labubu, a toy character widely marketed to children, drinking cola and smoking. The other, Cloud Bar, displayed images of Nintendo's Mario and Luigi lounging on a sofa, smoking, with vapes on a coffee table. These stores, which also sell and display lollies, soft drinks and ice cream, are located along the primary walking route for students at St Brigid's Catholic Primary School, Marrickville Public School, Marrickville High School and Casimir Catholic College.

The message being sent is clear: Smoking is fun, vaping is cool and addiction is just another accessory. It is not accidental; it is calculated. It is a deliberate attempt to normalise smoking and vaping for children, and it has to stop. These advertisements were already illegal, but the proprietors had no qualms doing it anyway. They knew the law; they chose to ignore it. I thank Mayor Darcy Byrne and Inner West Council for their swift action in getting the Labubu advertising removed. Far from being performative, this is the kind of action our communities want and need. I also acknowledge the many residents who signed petitions, wrote letters and spoke to me about these issues. Their advocacy has made a difference, and this bill is recognition of that.

While the bill does not address advertising breaches directly—that, of course, is covered under the Public Health (Tobacco) Act 2008—it strengthens the enforcement framework that supports those laws. I recognise that there are many different views and competing areas of policy debate within this space. Public health experts have always taken an approach centred around harm minimisation. I have had the opportunity to meet with many experts, including former director of the Alcohol and Drug Service at St Vincent's Hospital Dr Alex Wodak, one of the world's leading experts on these issues, who has warned that prohibitionist policies may drive consumers to black markets and more dangerous products.

We must ensure we have a sensible, balanced set of regulations that reduce access to vapes for children while also increasing access for adults who want to quit smoking. The harmful impacts of tobacco smoke are serious and well documented. It is in the interest of public health that options for transitioning nicotine-addicted adults away from cigarettes and combustible tobacco products are explored, including examining vaping products and their role in reducing smoking rates in other countries. Between 2016 and 2023, New Zealand's adult smoking rate plummeted by 10 per cent a year, from 14.5 per cent to 6.8 per cent. In contrast, Australia's smoking rate declined only 5 per cent a year, from 12.2 per cent to 8.3 per cent. New Zealand now has a lower smoking rate than Australia, which many attribute to the serious regulatory consideration of vaping as a legitimate form of harm reduction.

These are really important conversations that deserve to be had. The most important thing, of course, is that they do not conflict with the intention of the bill but reinforce it. The bill does not criminalise people who vape and it does not punish smokers. It targets the illegal operators who are profiting from addiction, exploiting kids and undermining our public health system. It also supports the national reforms introduced by the Commonwealth Government which restrict vaping to the pharmaceutical supply chain and allow therapeutic access under medical supervision. The bill complements those reforms by ensuring that New South Wales has the enforcement powers it needs to uphold the law.

I am pleased that New South Wales has called for a fairer distribution of resources to support other States and Territories to tackle the illicit tobacco trade and enforce public health laws. The Premier has made it clear that there are a whole bunch of people out there who would not break the law in a million years, but they are being dragged into the black market when they have the choice to go to a store and buy a pack of cigarettes for either $17 or $60. The Premier said, "Something's gone amiss here and we need to have a crack at fixing it alongside our Federal colleagues."

Action from the Federal Government, hand in hand with the New South Wales Government, is exactly what is happening. As long as exorbitant tobacco excises drive the cost of illegal tobacco, States and Territories will always be on the back foot when it comes to stamping out the tobacco black market. This bill is a clear signal that New South Wales is stepping up, but it also underscores the need for national coordination and shared responsibility. It is a big, progressive step forward and it reflects the values of fairness, safety and accountability that our communities expect from this Parliament. I commend the bill to the House.