Statutes Amendment (Tobacco and E-Cigarette Products—Closure Orders and Offences) Bill

Second Reading

Adjourned debate on second reading.

(Continued from 19 February 2025.)

Ms THOMPSON (Davenport) (12:34): I rise in support of the Statutes Amendment (Tobacco and E-Cigarette Products—Closure Orders and Offences) Bill 2025, legislation that we bring forward to safeguard South Australians, in particular young South Australians, from the risks associated with tobacco and e-cigarette products. Today, as we have done right across our term of government, we stare down what has quickly emerged as one of the country's greatest health challenges.

Smoking and vaping are well-recognised public health risks, and while we have worked tirelessly and cross-departmentally to address those risks, it is naive to think that new threats will not emerge. The consumption of e-cigarette products among young people presents an alarming trend, and it is one that demands immediate action and our ongoing attention. This bill is just one of our responses to that challenge, with other approaches including the passage of legislation to ban the supply of vapes to anyone under 18 and Consumer and Business Services assuming responsibility for enforcement where illegal tobacco e-cigarette sales are concerned.

In fact, this bill is just one of our responses to that challenge. It was just last September I stood here and spoke to the Tobacco and E-Cigarette Products (E-Cigarette and Other Reforms) Amendment Bill 2024. We are not a government that is sitting on our hands; we are doing the work, and we are implementing laws to keep our community safe as soon as we possibly can.

The impact of tobacco and e-cigarette products on public health cannot be overstated. The industry is heavily regulated at both the state and federal level, and it is heavily regulated for good reason. Tobacco use remains the leading cause of preventable death and disease in Australia, being responsible for a devastating number of cancers, respiratory diseases, and cardiovascular conditions.

In South Australia alone, there are approximately 260,000 current adult smokers, and roughly two in three of those people will be killed by their smoking if they do not make the decision to quit. That is a staggering number, but it is important to remember that number represents real people. Those who fall victim to smoking-related illnesses are fathers, mothers, children and friends, all lost too soon, and all early deaths that could have been prevented. But our concerns are not limited to the wellbeing of traditional tobacco smokers. The threat that we face today is e-cigarettes and vaping, which have been aggressively marketed to young people under the false premise of being harmless.

While some argue e-cigarettes provide a safer alternative for smokers looking to quit, we cannot ignore the mounting evidence that they are also a gateway to nicotine addiction for young people. This is not just an abstract policy discussion. It is an issue that is playing out in our schools, our homes, and in our communities.

Recently, I met with the local principal from one of our high schools who shared a troubling story with me. A year 8 student I will refer to as Josh was caught vaping in the school bathrooms. When his parents were called in, they were shocked. They had no idea that he had even tried vaping, let alone that he had become so addicted that he struggled to get through a school day without it. They soon discovered that he had been buying vapes from a local shop, hidden behind the counter and sold to him for $20 cash no questions asked. Josh is 13 years old. His parents were devastated. They told the principal that they never thought this would be their child. They said they had talked to him about drugs and alcohol, but never thought they needed to worry about vapes.

My own daughter, also in year 8, tells me she is often offered vapes at school by older students. It is just normal for her to be confronted by this each day, and that is exactly why this legislation is necessary. Josh's story is not unique. There are countless young South Australians like him getting hooked on highly addictive, unregulated vapes, often containing high doses of nicotine and a whole bunch of other harmful chemicals. This bill is about shutting down the businesses that enable this and ensuring that families like Josh's do not have to go through this preventable ordeal.

The Statutes Amendment (Tobacco and E-Cigarette Products—Closure Orders and Offences) Bill 2025 makes critical amendments to two acts: the Tobacco and E-Cigarette Products Act 1997 and the Retail and Commercial Leases Act 1995. Key reforms include:

stronger police enforcement powers to crack down on illegal sales;

new, tougher penalties and fines of up to $6.6 million for the supply and possession of illicit tobacco and vapes;

new offences for landlords and property owners who knowingly allow premises to be used for selling illicit products; and

enhanced information-sharing powers to improve enforcement and help businesses, landlords and the public report illegal sales.

These measures send a clear message: if you are profiting from harming our community, you will be held accountable.

For me, though, what lies at the heart of this bill is the protection it affords young and vulnerable South Australians. Enforcement is important—absolutely—but ensuring the long-term health of our children, many of whom do not fully understand how wide reaching the consequences of smoking and vaping can be, even if they know it is wrong, is absolutely critical here. We have a responsibility to protect the next generation from the harms associated with nicotine addiction. Cracking down even further on the illegal sale of e-cigarettes and tobacco to minors is another step in preventing young South Australians from becoming one of those statistics that I mentioned earlier.

Beyond enforcement, we must always invest in education and prevention. The economic cost of smoking-related illness in Australia is estimated at over $136 billion each year in healthcare expenses, lost productivity and premature deaths. If we allow vaping to become entrenched in the next generation, we risk replacing one public health crisis with another. We must also continue investing in health and education campaigns to ensure young people understand the dangers of vaping, to ensure schools have the resources they need to address the issue, and that parents have the tools to talk to their children about these risks. Cutting corners on prevention and education is just not an option.

Finally, I want to stress that public health is a collective effort. Legislation is one piece of the puzzle but we need families to talk to their kids, teachers to educate students about the risks, health professionals to support those trying to quit, and local businesses to do the right thing and refuse to sell these products illegally. Together, we can create an environment where healthier choices are easier to make and where those who break the law cannot profit at the expense of our children's health.

The statutes amendment bill is part of a broader strategy to reduce smoking and vaping rates in South Australia. It complements the work of the Department for Health and Wellbeing, Preventive Health SA, the federal government and community organisations fighting for a healthier future. This bill is about more than enforcement; it is about building a future where South Australians are healthier, happier and free from the dangers of nicotine. It is about ensuring that our children grow up in a world that prioritises their wellbeing, not the profits of an industry that preys on addiction. This is another opportunity to move the dial, strengthen our communities and take a stand against those who profit from harming young South Australians. I commend the bill to the house.

Ms PRATT (Frome) (12:42): I rise as the opposition's lead speaker on the Statutes Amendment (Tobacco and E-Cigarette Products—Closure Orders and Offences) Bill 2025, noting that this legislation was introduced by the Minister for Health and Wellbeing with the aim to amend two pivotal pieces of legislation, those being the Retail and Commercial Leases Act 1995 and the Tobacco and E-Cigarette Products Act 1997.

The background, if you like, on this legislation, as we will hear from a number of speakers, stems from the government's very obvious and accelerated response to other reforms and amendment bills in cracking down on illicit tobacco trading. The introduction of stricter regulations was designed to empower Consumer and Business Services and South Australia Police (SAPOL) to conduct raids on premises selling illicit tobacco products.

In briefings that we have had just this week with the government and the department, based on the minister's own second reading, it is clear that the stakeholders that the government have engaged with include Preventive Health SA, the agency of Consumer and Business Services, the Small Business Commissioner and the Crown Solicitor's Office.

To elaborate from the opposition's point of view on how we are here reflecting on another amendment bill on tobacco and e-cigarette products two months into the enforcement of the current legislation, it is understood that SAPOL had identified critical deficiencies that hindered their own ability to effectively enforce these laws. Consequently, SAPOL, via the police commissioner, formally requested additional powers from the Minister for Health and Wellbeing to bolster their enforcement capabilities.

Speaking for the opposition, if SAPOL are identifying any gaps, weaknesses, flaws or loopholes that inhibit their ability to do their job and to crack down on this illicit trade, there is certainly support and strong consideration for why that would be needed. While SAPOL already possess certain enforcement powers, they have currently lacked the authority necessary for addressing the illegal trade of nicotine where it may be located on unlicensed premises. The proposed amendments before us aim to enhance SAPOL's constitutional authority, thereby facilitating more effective prosecution outcomes regarding tobacco and e-cigarette regulations.

Some of the key amendments that the house has been asked to consider in this recent amendment bill—from previous legislation to the current act that we have—include penalties being lifted from $40,000 to $1.5 million for the sale or supply of tobacco, e-cigarette or prohibited products to children, and from $20,000 to $1.1 million for offences relating to selling tobacco products without a licence. Now we see fines escalating up to $4.5 million for commercial entities and up to $6.6 million for large-scale violations, depending on the quantities of illicit product.

This bill introduces a new offence targeting property owners or landlords who—and this is important to stress—knowingly permit illicit trade on their premises. It empowers authorities to issue closure orders on premises involved in illegal sales, allowing for immediate and decisive enforcement actions. The bill also mirrors existing police powers found in the Tattooing Industry Control Act 2015, allowing for expanded searches of suspected premises and imposing severe penalties for the possession and supply of illicit products.

The legislation introduces provisions to hold property owners accountable for knowingly facilitating illegal activities, while at the same time ensuring that unsuspecting landlords are protected from unjust repercussions. It allows property owners to apply to the court for amendments to, or revocations of, long-term closure orders, enabling them to lease their premises to new tenants. It also allows for the information related to these closure orders to be made publicly accessible, fostering more transparency. Finally, it enables information-sharing capabilities among enforcement agencies, enabling SAPOL, most importantly, to collaborate effectively with other entities. Amendments we are seeing to the Retail and Commercial Leases Act will allow lessors to terminate leases affected by long-term closure orders and to possibly seek compensation for any incurred losses.

In the minister's own second reading speech we heard the following, which does help to explain how legislation that was being enacted only a couple of months ago is before us again. The minister made the following comment:

These new measures—

that is, of the current act—

have already been used by both Consumer and Business Services and South Australia Police to seize illicit products across the state.

The minister continued:

Since the law started on 13December 2024, the Minister for Consumer and Business Affairs has issued six interim closure orders and applied for one long-term closure order, which is currently progressing through the courts.

There was a question that the opposition put to the government through our briefing this week, which was just to understand—in the short time from December to February and March; we have only had a couple of sitting weeks in that time—what was the trigger, what was the change? If the fines had already been increased up to $1 million from low levels like $20,000 or $75,000, and short-term and long-term closure orders were in effect, what evidence did we have that that was working or that they were being prosecuted or used, if you like?

By the minister's own record—that is, the Minister for Consumer and Business Affairs—the evidence is not in yet that those short-term and long-term closure orders are really being pursued. We expect that they will be. We welcome the amendment bill but it was important to just test the data from last year's amendment bill to this one.

The minister continued, in his second reading speech, saying that as part of Operation Eclipse, South Australia Police are sharing intelligence with Consumer and Business Services to assist them with their enforcement work, and that shared intelligence between law enforcement agencies has identified for our South Australian authorities that up to 75 per cent of the illicit trade of tobacco and e-cigarette products in Australia is being controlled by organised crime groups. That data sharing and that evidence is certainly information that the opposition sees as being very important in our decision to support this amendment bill.

To be clear, the Commissioner of Police—reading from the minister's second reading speech—has requested additional powers to tackle this issue in South Australia, which we understand, and that a provision in this amendment bill is not targeting innocent mum-and-dad lessors, landlords, property managers or real estate agents. These questions were put to the government in our briefing, just to make sure that organised crime is really the identified target of all states and territories, and that where innocent mum-and-dad landlords are not knowingly aware of illicit practices taking place in their bricks and mortar, they are not unduly penalised by this.

To summarise on behalf of the opposition, or as lead speaker, while the government continues to refine its approach in response to emerging intelligence from the field, it is evident that this amendment bill has garnered support from key stakeholders and has been initiated by a direct request from the police commissioner, which we respect. This legislative initiative and this legislation represents a critical step forward toward strengthening the enforcement of tobacco and e-cigarette regulations in our community, ensuring that we are equipped to combat the illicit trade effectively. With those remarks, I support the bill.

Ms SAVVAS (Newland) (12:52): I am always pleased to speak on bills of this nature and, of course, to be part of a government that is categorically addressing smoking and vaping, particularly amongst young people. We well know that tobacco smoking remains the leading preventable cause of disease and death in Australia. In South Australia, there are still approximately 260,000 adult smokers, and the figure shows that about two out of three of those people, if they do not quit, will be killed by their smoking.

I am of a generation that has seen smoking reform in real time. My parents were, in a former life (though they would hate me saying so) smokers, and I remember each stage of reform as it impacted our family. I remember all too well the banning of smoking in a car with children, and I was grateful for that one. Then there were plain packaging reforms—or as I call them 'Chris Picton reforms' because our minister was working in the federal health space at the time—and I saw firsthand the impact on those loved ones around me who were smoking.

I am really glad to have been part of that generation because I was not raised in a generation where smoking was normalised nor seen as cool and many, like myself, watched loved ones impacted by the perils of smoking pass away. Both my maternal great-grandfather and paternal grandfather were smokers and both died of lung-related disease. I saw it happen in my lifetime and, of course, I am glad to be growing up in a generation that very much knows better.

We also know that smoking is estimated to cost our state health system in excess of $2 billion each year. Through government action—through various governments—including legislation, education and many other initiatives we have made significant progress in reducing smoking in our community.

In the last few years alone, the Malinauskas government has demonstrated a strong commitment to tackling not just smoking and its impacts but illicit tobacco and e-cigarette sales in South Australia. We know that those illicit tobacco sales are very much a scourge on our society. In my own electorate, we have seen the sale of illicit tobacco products as well as advertising tobacco products, and that well and truly goes against plain packaging and advertising standards. From pretty much the day that I was elected this has been something about which I have been in regular contact with the various ministers' officers.

I know how my community feels about the sale of illicit tobacco products, particularly out in the suburbs near residential homes, and in our situation right next door to not one but three local schools. I was very proud that, in our last budget, our government committed $16 million over the next four years to tackle the growing trade in illicit tobacco. I was also particularly pleased to see the shift of resourcing from SA Health to CBS in July 2024 when, of course, CBS assumed responsibility of the licensing and enforcement functions related to illegal sales of e-cigarettes and illicit tobacco. As that trade continues to increase, and in all honesty the dangerous activity around it continues to increase, we know that our government departments need to be better equipped to respond.

CBS are now responsible for assessing new licence applications, ensuring existing licensees are complying with the law, and investigating and prosecuting offenders. This tougher compliance approach is very much necessary to tackle not just the trade itself but the criminal activities, as I mentioned, that are occurring in relation to that trade, and it is obviously more closely aligned with the current compliance work that CBS are undertaking. In addition, last year our government also passed legislation that banned the supply of vapes, even by prescription, to any person under 18 years, increased penalties up to $1.5 million, banned vending machine sales of tobacco products, and there were a number of other reforms.

I have six teenage cousins on one side of the family and another few on the other, as well as 14-year-old and 21-year-old little brothers, and I am so pleased to see that we are taking decisive action not just against smoking but against vaping. Of course, seeing that increase—particularly in a short period of time—in vaping by young people has been a significant concern to a number of us.

These new measures have been used by both CBS and SAPOL to seize illicit products across the state. We know that, as of February this year, approximately $12.5 million worth of illicit products have already been seized by our enforcement teams, and that has occurred in less than an eight-month period. There have been six interim closure orders, and an application for one long-term closure order is currently progressing through the courts. This is brilliant work, but it does also go to the enormity of the task ahead of us not just as a state but as a country as we work to tackle the next generation of narrative not only with respect to smoking but with respect to vaping as well.

We know that up to 75 per cent of the illicit tobacco trade is also accompanied by organised crime and related activity, and it is very much prudent that the police are given additional powers to tackle this issue in South Australia. That is, of course, what this amendment bill seeks to do, namely:

introduce greater police enforcement powers;

introduce new penalty levels and increased fines;

create a new offence for a person who allows premises to be used for prohibited conduct; and

enhance information-sharing powers, which is particularly important with respect to organised crime.

In practice, that means that SA Police will be able to undertake general drug detection and random weapon and explosive searches, including using detection dogs and the like when there is suspected unlawful conduct relating to the prohibited products in question. This is very much a huge change in approach by us and shows a firm, decisive action by our government to tackle this significant issue.

If we go back to the beginning of our term, the entire trade had to be responded to by two or three SA Health employees. Of course, that shift over to CBS has been really significant, as will be the introduction of SAPOL and the expanded powers that have been provided to them. I am really pleased to see that our police will be resourced to tackle the illicit trade and, of course, the organised crime networks that often have a significant role in conducting that trade. Also, I am pleased to know that SA will have the harshest fines in the nation, which sets a real tone as to our attitudes with respect to the illicit tobacco trade. I conclude my remarks there.

Debate adjourned on motion of Ms Clancy.

Sitting suspended from 13:00 to 14:00.