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House of Assembly - Fifty-Fifth Parliament, First Session (55-1)
2025-03-06 Daily Xml
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Bills

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

Second Reading

Adjourned debate on second reading (resumed on motion).

Ms CLANCY (Elder) (15:46): I rise today in support of the Statutes Amendment (Tobacco and E-Cigarette Products—Closure Orders and Offences) Bill 2025. Tobacco smoking remains the leading preventable cause of disease and death in Australia. In South Australia right now, there are approximately 260,000 adult smokers, about two-thirds of whom will be killed by their smoking if they do not quit. We need to do whatever we can to stop people smoking and vaping and prevent people from taking it up in the first place. Disrupting supply is one way we can do that.

The primary purpose of this bill before us today is to expand SAPOL's powers to tackle illicit tobacco and e-cigarette sales in South Australia. Consumer and Business Services have had responsibility for licensing and the enforcement of functions related to illegal sales of e-cigarettes and tobacco since July last year. Consumer and Business Services now assess new licensing applications, ensure existing licensees are complying with the law, and investigate and prosecute offenders. Our new closure orders, which allow authorised officers and the courts to immediately close down unlawful activity relating to illicit tobacco, have proven to be very successful. The Minister for Consumer and Business Affairs has utilised the new closure laws to issue six interim closure orders since December 2024.

In addition to these increased compliance powers, the Malinauskas Labor government has passed legislation that seeks to directly counter the sale of e-cigarettes and illicit tobacco to children and young people, including banning the supply of vapes to anyone under 18, even by prescription; banning vending machine sales of tobacco products in public areas; and creating smoke-free and vape-free buffer zones for enclosed public transport areas.

I would like to share a story from my electorate of Elder and the office in relation to this bill. Last year, we received an email from a local resident. Attached was a picture of a massage parlour on my section of South Road, and handwritten on an A-frame outside the shop was 'cheap cigarettes and vapes'. This concerned local had contacted me to find out if it was legal to sell cheap cigarettes and vapes from a little shop on South Road.

Accordingly, my staff forwarded the email and picture to our local police, who were very responsive and helpful—we are very grateful to them—and little more than a few days later we received a call from the sergeant to let us know that yes, in fact, the massage parlour was selling illegal tobacco and vapes. The shop's stock was seized and the owners were fined $3,000. Our constituent was very pleased that his quick email through to our office had shut down an illegal seller. Unfortunately, not all illegal sellers of illicit tobacco and e-cigarettes are quite so transparent or brazen as to put a sign out onto South Road, so tougher compliance approaches are necessary to tackle the criminal activity responsible for distributing these substances throughout our communities.

Enforcement agency intelligence has identified 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. The Commissioner of Police has rightly requested additional powers to confront the challenges in policing this issue. We, as a government, are prepared to act to provide our enforcement agencies with the legislative instruments they need to prevent children and young people's exposure to these poisons. These amendments will introduce greater police enforcement powers. The bill will also bring in:

new penalty levels and increased fines of up to $6.6 million for supply and possession of commercial quantities of illicit tobacco and vapes;

the creation of new offences for a person who allows a premises to be used for prohibited conduct, such as the sale of illicit products; and

enhanced information-sharing powers to support enforcement operations and allow for improved communication with owners, building managers and the public.

South Australia Police will be able to undertake general drug detection and random weapon and explosive searches, including the use of detection dogs and metal detectors in locations suspected of unlawful conduct relating to illicit tobacco, e-cigarettes or other prohibited products.

The Malinauskas Labor government will ensure we have the harshest fines of any state or territory in the country for supplying or possessing commercial and large commercial quantities of these prohibited products. Because, as we all know, vaping and smoking do serious damage to everyone, and especially to our children and young people. As a parent, I hate the idea of my child taking up smoking or taking up vaping, and I am sure every person in this chamber and in this building feels the same. No-one is going to be celebrating that.

We do presently see improvements in vaping and smoking rates among 15 to 29 year olds, which have reduced by about a third when compared to 2023. This is a direct result of what we have been doing to support our schools, with training for staff, social media campaigns and increased resources all contributing to the reduction in youth vaping. Education department data shows suspensions relating to vaping have reduced, a sure indication that what we are currently doing is working.

My worry, and I am sure I am not alone in this, is that an increasing number of illicit tobacco and vaping products coming into the market has the potential to interrupt our successes, so we must support our enforcement agencies to keep South Australians safe from these deadly products. With this amendment bill, our government is showing its commitment to improving public health and safety outcomes in South Australia. I commend the bill to the house.

Mr DIGHTON (Black) (15:52): I rise to speak in favour of the Statutes Amendment (Tobacco and E-Cigarette Products—Closure Orders and Offences) Bill. As has been stated, tobacco smoking remains the leading preventable cause of disease and death in Australia. There are approximately 260,000 adult smokers and about two out of three of these people, if they do not quit, will be killed by their smoking. Smoking also costs our state health system in excess of $2 billion each year.

Unfortunately, I am the son of a smoker and I have seen the impact of smoking on my father and other family members. It was the experience of being the child of a smoker that in many ways meant that, unlike many of my peers growing up, I was never interested in trying cigarettes on any occasion.

I am proud of the work of this government through action, including legislation, education and other initiatives, implemented over a number of years, which has led to significant progress in reducing smoking prevalence in our community. Some of those initiatives have included:

$16 million over the next four years to tackle the growing trade in illicit tobacco;

taking action against people thinking they can sell illicit tobacco and e-products; and

Consumer and Business Services assuming responsibility for licensing and enforcement functions of illegal sales of e-cigarettes and illicit tobacco—CBS is now responsible for assessing new licence applications and ensuring existing licences comply with the law, investigating and prosecuting offenders.

This tough compliance approach is necessary to tackle the criminal activities that are occurring and is more closely aligned with the current compliance work. Last year, legislative changes included:

banning the supply of vapes to a person under 18, even by prescription;

increased penalties;

banning vending machine sales of tobacco products in public areas;

introducing a new authority to ban novel products that are marketed as alternative to vapes;

creating a smoke-free and vape-free buffer zone for enclosed public transport areas;

allowing the issue of a closure order on premises so that authorised officers and the courts can immediately close down unlawful activity relating to illicit tobacco; and

updating licence and enforcement provisions to allow for greater capacity to enforce breaches of the law.

However, the fight against the harms of tobacco continues. These new measures have been used by CBS and South Australia Police to seize illicit products across the state. It was pleasing to hear that earlier this year approximately $12.5 million worth of illicit products had been seized by enforcement agencies, including over 10 million cigarettes, more than four tonnes of tobacco, more than 400 kilograms of shisha and more than 55,000 vapes. These seizures occurred over an eight-month period between July last year and February of this year.

Since the closure orders started on 13 December 2024, the Minister for Consumer and Business Affairs has issued six interim closure orders and applied for one long-term closure order. That is currently progressing through the courts. This is important action by the minister. I have seen shopfronts in my electorate that market the sale of candy as well as shisha products. Whilst we cannot be sure necessarily of the legality or illegality of that, but one cannot help but sense it seems a little bit sinister that these shops sell both candy and tobacco products.

Enforcement agency intelligence has identified that up to 75 per cent of the illicit trade of tobacco and e-cigarette products in Australia is currently being controlled by organised crime groups. The Commissioner of Police has requested additional powers to tackle this issue, and the government is willing and prepared to provide our enforcement agencies with the tools they need to disrupt the illicit tobacco trade.

The amendments of this legislation include an introduction of greater police enforcement powers, new penalties, increased fines of up to $6 million for the supply and possession of commercial quantities of illicit tobacco and vapes, the creation of new offences for a person who allows a premises to be used for a prohibited conduct, such as the sale of illicit products, and enhanced information-sharing powers to support enforcement operations and allow for improved communication with owners, building managers and the public.

South Australia Police will be able to undertake general drug detection, random weapon and explosive searches, including the use of detection dogs and metal detectors in locations suspected of unlawful conduct relating to illicit tobacco, e-cigarettes and other prohibited products. South Australia will also have the harshest fines of any state or territory in the nation for supplying or possessing commercial and large quantities of prohibited products.

The South Australian government was an active player in national vaping reforms, as well as taking other strong actions against this serious health problem, including:

running media advertisements and campaigns about vaping across various mediums, including Instagram, TikTok, YouTube, radio and outdoors. In my experience, and from a schooling perspective, vapes are often for sale and promoted through a medium such as Snapchat, which unfortunately is a medium that is very difficult to monitor;

supporting schools with education campaigns and resources;

introducing new vape and smoke-free areas; and

imposing licensing conditions to reduce the illegal sales of tobacco and vapes.

I can tell you from my experience as a schoolteacher the impact that vapes have, both on the individual health and wellbeing of young people and also within a school community. I am aware of at least two instances, including one on school grounds, where a student had a medical emergency because of vape use and, in particular, their body's reaction to substances within the vapes.

The students who used the vapes had no idea of the harmful chemicals that were contained within them. Of course, the unregulated black market means that these products are not regulated and therefore are unsafe. Additionally, I know of several students—and when I say 'students' I am talking about middle school students—who as a result of vape use had developed nicotine addiction. These are year 7s, 8s and 9s. Their families had to seek support from medical experts to manage their addictions.

The dangers of vape use are well known. According to the AMA, studies have linked vaping to acute lung injury, popcorn lung, tooth decay, along with ongoing nicotine addiction. Risks to the physical health of students are why school communities are undertaking many preventative measures to support students to both understand the risks as well as stop the use. Some of the measures implemented at my previous school community include the education of students and parents.

Vape detectors or monitors have been installed in school toilets, along with a number of punitive measures, including detention, suspension and, if required, expulsion. I can tell you firsthand of the significant additional workload created by installing vape monitors in toilets and the various follow-ups that had to occur as a result.

I was pleased to hear the Minister for Education has reported that suspensions relating to vaping in South Australia have dropped by 50 per cent. I know that despite a drop in suspensions, schools are continuing to allocate significant resources to change student behaviour. Additionally, I am aware of at least one occurrence where school communities, including parents, are working with SAPOL to identify commercial entities that are known to sell vapes to students. This is a great example of commendable community action and I do want to emphasise the important role that parents play in supporting children to avoid such risk-taking behaviour.

I have, unfortunately, in my previous capacity met parents who were unaware of the risks of vapes and tobacco use, or in some examples even condoned the use of vapes for their children, assuming, unfortunately, that it was safer than cigarette use. I implore all parents to make sure they engage with their children around the dangers of vapes and tobacco more broadly. These law changes will reduce vapes from making their way into our school communities and hence allow school communities to focus on other academic and wellbeing goals.

It is pleasing that the South Australian Health and Medical Research Institute (SAHMRI) has conducted research and found that there has been a significant reduction in vape use amongst young people. Research from last year suggested that usage among 15 to 29 year olds was reduced by around a third, to 10.8 per cent, when compared to 2023, which was 15.1 per cent. This is a really pleasing statistic, but I know there is still much more work to do.

Again, according to the AMA, studies have shown that vaping significantly increases the likelihood of smoking cigarettes later by as much as five times. So whilst the data shows that the federal and state governments' vaping reforms are working, the illicit tobacco and vaping products currently available in the community have the potential to reverse these successes. We must ensure that our enforcement officers are supported to address the illicit sale of tobacco and e-cigarettes so we can continue to keep South Australians and our community safe from this illicit trade. I commend the bill to the house.

Mrs PEARCE (King) (16:03): As many of us know, tobacco smoking remains one of the leading preventable causes of disease and death in Australia. Here in South Australia there are approximately 260,000 current adult smokers, and about two out of three of those people, if they do not quit, will be killed by their smoking.

This was the experience of my pop. Watching him as a kid go through this process was truly devastating and left a lasting impression. As a country kid, most of his specialist appointments and treatments were in Adelaide. We were often taken out of school to be able to commute with him into town so he could receive assistance and treatment. Over time, we watched him slowly lose his dignity and his independence. It was truly crushing and certainly instilled in me a desire to see better in this space.

Smoking is also expensive. It is estimated to cost our state health system in excess of $2 billion each and every year. Through government action, including legislation, education and other initiatives implemented over a number of years, we have made significant progress in reducing smoking prevalence across our community. This government has demonstrated a strong commitment to tackling illicit tobacco and e-cigarette sales across South Australia and in the last budget committed $16 million over the next four years to be able to help tackle this growing trade in illicit tobacco and take action against anyone thinking that they can still sell illicit tobacco and e-cigarette products.

From 1 July 2024, Consumer and Business Services assumed responsibility of the licensing and the enforcement functions related to illegal sales of e-cigarettes and illicit tobacco. They 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 necessary to be able to tackle the criminal activities that are occurring and is more closely aligned with the current compliance work.

Last year, our government also passed legislation that banned the supply of vapes to any person under 18 years old, even by prescription, and increased penalties up to $1.5 million, banned vending machine sales of tobacco products in public areas, introduced a new authority to ban novel products that are marketed as an alternative to vapes, and used this to ban nicotine pouches. We created a smoke-free and vape-free buffer zone for enclosed public transport areas, allowed the issuing of a closure order on a premises so that authorised officers and the courts can immediately close down unlawful activity relating to illicit tobacco, and updated licensing and enforcement provisions to allow for greater capacity to enforce the law when breached.

However, the fight against the harms of tobacco continues. These new measures have been used by both Consumer and Business Services and South Australia Police to seize illicit products across the state. As at 13 February 2025, I understand that approximately $12.5 million worth of illicit products have been seized by our enforcement teams. This includes more than 10 million cigarettes, more than four tonnes of tobacco, more than 400 kilos of shisha and more than 55,000 vapes. These seizures have occurred between July 2024 and February 2025, less than an eight-month period.

Since the closure orders laws started on 13 December, 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. I would also like to take this time to thank the minister very much for all of her hard work and efforts to date in this space. Enforcement agency intelligence has identified 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. The Commissioner of Police has requested additional powers to tackle this issue in South Australia, and this government is willing and prepared to provide our enforcement agency with the tools that they need to disrupt and end illicit tobacco trade in this state.

The Statutes Amendment (Tobacco and E-Cigarette Products—Closure Orders and Offences) Bill 2025 seeks to amend both the Tobacco and E-Cigarette Products Act 1997 and the Retail and Commercial Leases Act 1995. The amendments include the introduction of greater police enforcement powers, something that I know has been called for in my community for some time; new penalty levels and increased fines of up to $6.6 million for supply and possession of commercial quantities of illicit tobacco and vapes; the creation of new offences for a person who allows a premises to be used for prohibited conduct, such as the sale of illicit products; and enhanced information-sharing powers to be able to support enforcement operations and allow improved communication with owners, building managers and the public.

South Australia Police will be able to undertake general drug detection and random weapon and explosive searches, including the use of detection dogs and metal detectors in locations suspected of unlawful conduct relating to illicit tobacco, e-cigarettes and other prohibited products. We will also have the harshest fines of any state or territory in the nation for supplying or possessing 'commercial' and 'large commercial' quantities of prohibited products.

The South Australian government was an active player in the national vaping reforms as well as taking other strong actions against this serious health problem, including:

running hard-hitting media advertising campaigns across a wide range of avenues including radio, outdoor and digital platforms such as Instagram, TikTok and YouTube;

supporting schools with an education campaign, resourcing and staff training aimed at preventing children taking up vaping, helping those who want to quit as well;

introducing new vape and smoke-free areas that commenced on the 1 March last year, banning vaping and smoking in a variety of public outdoor areas including at our schools and childcare settings and under-18 sporting events; and

imposing tougher licence conditions on retailers to reduce the illegal sales of tobacco and vapes.

I have listened to many instances from concerned community members across my electorate regarding young people and the use of vape pens in public, whether that is in or around our local shopping centres, our parks and sports spaces, and even in our schools. It seemed that no matter where you went, you could always spot a young person with a vape in hand.

I remember a mother of a local student visited my office regarding the concerns that she held for one of her children. She was absolutely beside herself when she found a disposable vape in her daughter's room. When she confronted her daughter and asked her why she would partake in such an unhealthy and addictive habit, all she had to say was that it was because her friends were doing it. This mother wanted to know what our government was doing to prevent these unhealthy habits. Importantly, she wanted to know what we were doing to punish those who were taking advantage of young people and selling vapes to minors.

The South Australian Health and Medical Research Institute have recently released a report showing that vape use among young South Australians has significantly reduced thanks to South Australia's world-leading vaping laws. The research found 2024 vaping rates among 15 to 29 year olds reduced by around a third to 10.8 per cent when compared to the statistic in 2023, which was 15.1 per cent. Vaping rates among those aged 30 to 59 have also dropped around half from about 6.7 per cent in 2023 to 3.6 per cent in 2024, while overall vaping rates for people aged 15 and above were reduced more than a third to 6.7 per cent in 2023 to 4.3 per cent in 2024.

I am also incredibly pleased to hear that the Minister for Education has reported that suspensions relating to vaping in South Australian schools have dropped by a staggering 50 per cent. In term 1 2023, there were 388 suspensions compared to 186 in term 1 2024. A trend of greater than 50 per cent has continued throughout terms 2 and 3 in 2024 compared to 2023. This shows that we are doing something right, but there is still further to go.

This latest data shows that the federal and state governments' vaping reforms are working. However, the illicit tobacco and vaping products currently available in our community still have the potential to be able to reverse these successes. We must ensure that our enforcement officers are supported to address the illicit sale of tobacco and e-cigarettes so that we can continue to keep young South Australians in our community safe from diseases that occur as a result of taking up this habit. With that, I would like to commend the bill to the house.

Mr FULBROOK (Playford) (16:13): I am pleased to stand and add my name to a large list of members speaking in support of this bill. I consider this necessary to ensure those working in enforcement are properly supported to address the illicit sale of tobacco and e-cigarettes so that young South Australians and the community in general are made safer from the ill effects of this awful trade.

The cost of taking up smoking as a teenager is a price many will pay for a prolonged period. While I never smoked, I saw the disadvantage my dad, and subsequently people around him, suffered after he took up this habit in his teenage years. While it might not be obvious to those starting out, smoking takes food off the table and limits an abundance of opportunities in life. I saw this with dad, who took it up when he was 13, with the shadow of that decision following him closely right up until the last day of his life.

To be honest, he was so addicted that I do not think anyone in our family ever thought he would be able to give up. It was not until he was working for Australia Post—I just mentioned them in my last speech—when he broke his leg and was hospitalised for a prolonged period that it became extremely difficult for him to light up from his hospital bed. While it was not easy for him, or indeed our family, at the age of 53 he made the most of a difficult situation and kicked 40 years of addiction.

Even as a young boy, I can recall how he would wake up in the middle of the night for a smoke, and towards the end of his life he was dependent on oxygen. It is a life that I do not want for others. While we can talk all we want about the lost revenue to the community from the black market sales, from my point of view regardless of where a vape or a cigarette comes from they still have the potential to kill you.

Having said that, clearly those sold on the black market are going to be cheaper and therefore this presents a weaker barrier to taking up the habit. The fact remains that in a state of around 1.8 million people there are currently 260,000 adult smokers. If two out of three of those people do not give up, the advice I have suggests they will be killed by smoking.

Noting this costs our health system roughly $2 billion alone each year, we really are just scratching the surface on the true cost to us, both as individuals and collectively as a community. Let's not forget that it is impossible to put a price on the grief and trauma tobacco causes and sprinkle in what is measurable, such as lost workforce productivity, just to give one small example. This is why I put my name next to any measures, both great and small, to help diminish the scourge caused by nicotine products within this state.

In looking at the detail of this bill, I can see the span of it stretches far across government and note that police have sought additional powers, with this bill granting them the ability to undertake additional searches of premises suspected of selling illicit products. Noting that these crimes are hardly in isolation to other threats, it will also include additional powers to search for drugs, weapons and explosives. The net will tighten, with the use of detection dogs and metal detectors where our police officers suspect unlawful conduct.

The changes will also see new penalty levels and increased fines of up to $6.6 million for supply and possession of commercial quantities of illicit tobacco and vapes. This includes the creation of new offences for a person who allows a premises to be used for prohibited conduct like selling illicit tobacco products.

Given the suffering nicotine inflicts on our community, I have absolutely no sympathy for anyone who may be hit with a fine of this proportion. Hopefully, the changes send a strong and loud message that it is just not worth the risk of getting involved in this trade in the first place, as eventually the net will tighten and the law will catch up with you. I understand and I welcome that we will now have the harshest fines of any state or territory for supplying or possessing commercial and large commercial quantities of these prohibited products.

There is also provision within this bill to amend the Retail and Commercial Leases Act, giving landlords the power to terminate retail shop leases if a long-term closure order issued under the Tobacco and E-Cigarette Products Act 1997 is in effect. This is a solid provision, as it grants them the power to clean up our retail strips and sends a strong message to illegal vendors that we simply do not want you trading here. I imagine a black mark against a retailer doing the wrong thing will send alarm bells to prospective landlords, and if by some miracle they can afford the hefty fines this hopefully makes it extremely difficult to find a new place to begin trading elsewhere.

This builds on our new closure order laws, which came into effect on 13 December last year. So far, 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. I imagine she has a lot to say about that in the next few minutes, and hopefully she might be able to confirm my numbers.

The compulsion to take up smoking cigarettes or vapes often begins around our schools, let's not deny it. I can remember during my days in high school being reluctant to use the toilets, as the scent of urine mixed with cigarette smoke was nothing short of vile. I imagine, and I am hopeful, that the use of smoke detectors eventually stamped that out, but just as technology has evolved to combat the rise of nicotine products, so too has the product itself through the rise of e-cigarettes and other vaping products.

To combat this, the Malinauskas government has taken significant action in warning young people of the risks involved in vaping, including on radio and outdoor platforms and digital platforms such as Instagram, TikTok and YouTube. It has also supported schools with an education campaign, resources and staff training aimed at preventing children taking up vaping, and helping those who want to quit. There will be more to do, and I do not feel we can rest on our laurels, but I understand the Minister for Education has reported that suspensions relating to vaping in South Australian schools has dropped by a staggering 50 per cent. Well done. This is welcome news.

I want to take the chance to thank Minister Boyer on another front for delivering a fence around Parafield Gardens High School late last year. I had quite a few constituents approach me, concerned that due to the lack of proper fencing it was possible for students to disappear at certain times of the day for a quick smoke or vape. Staff at the school also expressed similar concerns, which I was able to then pass on to the minister.

In full credit to him, I only have one public high school in my electorate and he quickly stumped up the funding for the fence to go up. I am sure this measure will play a significant role in helping to address this problem, arguably at one of its key sources. Our community is extremely grateful and I want to take this moment to place on record a sincere thanks to the minister for his help.

Of course, there is more to do and we can expect that this problem will continue to evolve. As lawmakers, we must be prepared to evolve with it. Laws like the bill before us today build on legislation passed last year that banned the supply of vapes to anyone under 18 years old, increasing penalties to $1.5 million, banning vending machine sales of tobacco products in public areas, and updating licensing and enforcement provisions to allow for greater capacity to enforce breaches of the law, to name just a few. I also note that we have introduced a new authority to ban novel products that could be marketed as an alternative to vapes, which are the kinds of provisions needed within the law to help combat an industry with the resources and the technological prowess to rapidly evolve.

This week we heard of a Four Corners investigation detailing a web of shipping routes, Middle Eastern factories, false documents, unmarked white vans and violent criminals. While not every aspect of these concerns relates to South Australian law, it is a reminder that we have a long way to go in this fight, and I would imagine there will be more adjustments to legislation and regulation along the way.

Before I end, I want to digress slightly and place on record my admiration for Minister Picton on this front. He has brought very worthwhile legislation to this chamber over time and deserves recognition as a long-term champion in our community. Well over a decade ago, I can remember the minister served as Minister Roxon's Chief of Staff. This was at a time when the minister led the world in the introduction of plain packaging for cigarettes. Some may recall the plethora of detractors working hard to discredit these efforts in the hope of ensuring that the measure failed. Time has shown that this was not the case, but it seldom recognises how difficult the fight was.

At the helm was a younger version of Minister Picton doing everything in his power to ensure public interest won out over commercial greed. Although I was an adviser working for South Australian ministers at the time, I can remember we caught glimpses of Chris every now and then—and boy, he looked stressed. But the reality is, he succeeded and as a result there are a lot of people who are still here today due to his hard work. I know he would be the last one to seek recognition, but I do feel that his deep commitment to the cause shows just how personally committed he is to saving lives on this front.

I am sure the minister would agree that, while it is a tough battle to fight, the costs are simply too high to sit back and do nothing. When I think back to my dad, who went down the wrong path back in the 1950s, I feel we owe it to all those men and women who suffered in the name of someone else's greed to be ready to fight back. With all this in mind, I want to thank the minister not only for bringing this bill to the chamber but also for his long efforts on this front. I commend the bill to the house.

The Hon. D.G. PISONI (Unley) (16:24): I always enjoy the member for Playford's contributions and the articulate manner in which he delivers them. I do not think there is any argument with his very strong concern about the effects of nicotine and smoking in the community. In my contribution, I want to broaden the discussion about minimising the risks to people taking up smoking.

What I have seen in the last 10 years since the introduction of e-cigarettes is how they were somehow sold by people who had no qualifications or ability to make the claim that they are better than smoking and can help you get off cigarettes. Of course, the Therapeutic Goods Association has not given approval for them to be a drug to be used for any treatment for getting off cigarette smoking. That is a fallacy and it has become an urban myth. I think what has made it worse now is the federal government's decision to restrict the sale of vapes to pharmacists, a community distribution network right around the country.

It is interesting that pharmacists in Australia have expressed mixed reactions to the federal government's program allowing e-cigarettes to be available through pharmacies. In Western Australia, for example, there was a survey of 600 pharmacies, revealing that more than half, about 60 per cent of those pharmacies, are choosing not to stock the vapes, citing concerns about supplying unregulated products. Additionally, the Pharmaceutical Society of Australia has noted that a lack of Therapeutic Goods Administration approval is the reason that pharmacists are hesitant to supply e-cigarettes.

Remember, pharmacists are in the health business, and they are about people's health in general, about dispensing medicine that has been prescribed and proven to have an effect. That is not what e-cigarettes do, yet the federal Labor government has legitimised e-cigarettes by making them exclusively available, not even with a prescription, from some of the most trusted professionals in the community. If you look at the list of professions that are trusted by the public, get off the bottom of the list, with politicians and a few others down there, and get up to pharmacists, right up the top. The Albanese government has now enabled cigarette companies, who are in the e-cigarette business, to access the massive distribution network of those pharmacies.

The federal government program permits the supply of e-cigarettes. Many pharmacists remain cautious due to the regulatory uncertainties, potential health risks and ethical considerations. It enables the cigarette companies to infiltrate those pharmacies. There was a story in The Guardian just late last year that spoke about the problems and reasons why pharmacists are just not happy with this process. The story says—and I will paraphrase some of the key points—that concerns were raised at the Oceania Tobacco Control Conference held last year that it is actually the tobacco industry 'trying to infiltrate the pharmaceutical space'.

Have you ever heard such an oxymoron that there could be an opportunity for the tobacco industry to work in conjunction with the health industry, a retail health industry that people trust? It is no wonder that more than half of pharmacies and many entire pharmacy chains and buying groups in the pharmacy sector have said no to selling vapes. The article goes on to say:

Unlike nicotine-replacement products such as nicotine gums and patches, there are no therapeutic vapes that have been evaluated by drugs regulator the Therapeutic Goods Administration as safe for commercial supply.

So not only have they not been evaluated for their effectiveness but they have not been evaluated as being safe, yet the Albanese government has given the e-cigarette industry and the tobacco industry that owns that industry the keys to the health industry by enabling them to be sold exclusively through pharmacists—as though buying it from a pharmacist means they must know what they are doing, so I can do that and I can believe the urban myth that this will help me to give up smoking, or this will be safer than smoking.

We know that research that has come out recently tells us it actually has the reverse effect: it is actually more toxic and more dangerous than smoking cigarettes, yet you can buy these—thanks to the Albanese government—from pharmacists over the counter. The federal legislation does not require a prescription for a vape. They can be supplied at a pharmacist's discretion to anyone over the age of 18 for smoking cessation.

How does that work? How does a pharmacist know that a person is on a program to give up smoking? There is no prescription required in order to buy them. Sure, they can ask them. I am sure that someone who is addicted to e-cigarettes who has never had a real cigarette will say, 'Yes, I'm trying to give up smoking, so that's why I'm here. Sell it to me.' It is just ludicrous, and the industry has responded: more than half of the pharmacies in the country have said no to the sale of these vapes over the counter.

The legislation in this place today has been brought in because of legislation that was rushed in last year on the back of a press release, and it is here because the original legislation was not workable and there has been advice from the police commissioner to fix this. I would like to give some advice to the Albanese government and that is to stop this ludicrous situation where people can go to a pharmacy—where they go for the health benefits of proven pharmaceuticals and qualified health advice—and remove that seal of approval that people see on e-cigarettes that is given to them because they are available from pharmacies. It is a ludicrous situation. To me it seems it was more about politics than it was about health.

We know that the 60-day prescription announcement by the Albanese government early in 2024 was very damaging to the relationship between the pharmacy industry and the Labor government. We know it costs the average pharmacy about $250,000 a year just straight off the bottom line without any conversation, without the ability to plan for it. Many of the free services that pharmacists were offering could no longer be afforded to be delivered. It is a fallacy to say the 60-day prescription was making drugs cheaper. It was a con for the Albanese government to claim that they were reducing the cost of prescriptions. It is actually the pharmacists themselves who now have to prescribe two prescriptions for the same fee as prescribing a single prescription.

This ill-informed deal that the federal health minister, Mark Butler, knocked up and got through the parliament was a political decision obviously because it certainly was not a health decision. Being able to purchase addictive drugs that have no health benefit, as a matter of fact are detrimental to your health, from a pharmacy is a complete oxymoron.

The Hon. A. MICHAELS (Enfield—Minister for Small and Family Business, Minister for Consumer and Business Affairs, Minister for Arts) (16:36): I rise today in support of the Statutes Amendment (Tobacco and E-Cigarette Products—Closure Orders and Offences) Bill 2025 that seeks to amend the Tobacco and E-Cigarette Products Act and the Retail and Commercial Leases Act.

This bill represents another significant step by the Malinauskas government to reduce smoking and protect our children and young people from the harmful effects of the tobacco industry. This industry costs our state health system in excess of $2 billion each year. This bill also demonstrates the Malinauskas government is taking this extremely seriously and we continue to tackle the issue of illicit tobacco and the involvement of organised crime.

In the last budget, our government committed $16 million over four years to tackle the growing trade of illicit tobacco and take action against anyone thinking they can still sell illicit tobacco and e-cigarettes. We have already passed legislation that:

banned the sale, supply and possession of e-cigarette products in South Australia;

increased penalties to up to $1.5 million;

banned vending machine sales of tobacco products in public areas;

introduced a new authority to ban novel products which are marketed as an alternative to vapes, and used this to ban nicotine pouches already; and

created a smoke-free and vape-free buffer zone for enclosed public transport areas.

The previous legislation allowed me, as Minister for Consumer and Business Affairs, to issue short-term or long-term closure orders on premises so that authorised officers can immediately close down unlawful activity relating to illicit tobacco. We also updated licensing and enforcement provisions to allow for a greater capacity to enforce breaches of the law.

Our government is committed to safeguarding our community and this bill responds to requests from SAPOL to provide police with enhanced powers similar to those established in the Tattooing Industry Control Act 2005, which grants law enforcement the authority to conduct supplementary searches of premises suspected of selling illegal products and may include searches for drugs, weapons and explosives.

In addition, greater penalties will be introduced for individuals caught in possession of or supplying commercial quantities of illicit tobacco and e-cigarettes, with fines reaching up to $6.6 million. This serves as a substantial deterrent for those who choose to engage in this illegal trade. New offences will be created for an owner or a person having management or control of a premises who knowingly causes or permits another to engage in prohibited conduct on the premises.

A provision is also created in the Retail and Commercial Leases Act to allow for the termination of a retail or commercial lease if a long-term closure order is in effect. This provides a practical process of allowing a lease termination during a long-term closure order that is issued by the Magistrates Court.

This amendment reflects requests made to me by stakeholders and will make it easier for landlords to enter tenancies subject to a long-term closure order and find a new tenant. I want to thank members of the Retail Shop Leases Advisory Committee, which was convened by the Small Business Commissioner, for their input on this amendment. Additionally, this bill also creates a provision for information relating to the closure of unlicensed premises to be made publicly available. This is a matter of public importance, and we want to ensure that the community has access to accurate information to safeguard their loved ones.

As Minister for Consumer and Business Affairs, I want to make sure that this information is publicly available, not only for transparency reasons but also to allow other third parties—whether it be landlords or insurance companies—to be aware. I will undertake consultation with CBS, SAPOL and Preventive Health on how this information will be shared, but publication on the CBS website is one example. We believe there are over 200 tobacco stores operating illegally throughout South Australia selling tobacco and vapes without a licence and, between CBS and SAPOL, there have been over 350 visits to tobacco stores across the state resulting in a seizure of approximately $16 million worth of illicit products to date from 1 July last year.

It would be no surprise to members in this place that most of the cigarettes and vapes sold at these stores are imported from overseas. They do not contain the necessary health warnings and could have anything in them without any kind of screening process in place. In fact, vapes tested have been found to contain a cocktail of chemicals, including arsenic and lead. That is why we are cracking down and giving CBS the tools and resources they need to combat this illicit trade and continue to work closely with SAPOL's Operation Eclipse, Border Force and the TGA.

Over the years, parents have raised concerns about how their children and peers are using vapes. They were frustrated by how easy it was for our young people to get their hands on these harmful products. Only through this government's commitment to action, such as legislation, education and various initiatives implemented over several years, can we reduce this risk to youth.

In South Australia, we are already seeing positive changes. The South Australian Health and Medical Research Institute recently released a report indicating vape use amongst young South Australians has already significantly decreased. Vaping rates amongst 15 to 29 year olds have significantly dropped from 15.1 per cent in 2023 to 10.8 per cent in 2024. This is a remarkable reduction of about a third, and I know the Minister for Health, who is here, and the Minister for Education have been working hard to reduce the rates of vaping in our schools, and I want to thank them for their efforts.

I was pleased to hear the Minister for Education reporting a staggering 50 per cent decrease in suspensions relating to vaping in South Australian schools. In term 1 2023, schools recorded 388 vaping-related suspensions, yet in term 1 2024 that number plummeted to just 186. There are many positive signs that the federal and state governments' vaping reforms are working to prevent a new generation from becoming addicted to nicotine. Together, we are making bold strides towards a healthier future for our youth.

I am also pleased to tell the house that South Australia is the first state in the nation to ban highly addictive nicotine pouches under tough new legislation. Nicotine pouches, which are sold as an alternative to vapes and tobacco, are subject to the same controls as illicit tobacco and e-cigarette products. These pouches have been found alongside other illicit tobacco and vape products during our raids of tobacco stores. Consequently, we have taken proactive measures to prevent this insidious product from taking hold in our community.

Nicotine pouches pose a threat to vulnerable people in our community. They are available in a wide range of novelty flavours—fruit flavours, etc.—and are often packaged in colourful branding. Alarmingly, they are commonly marketed towards children and young people via social media and can also be promoted as quitting aids for smoking and vaping, despite the lack of any evidence supporting their effectiveness. In addition to the health risks, illegal sales of this product pose a serious threat to the wider community, with 20 arson attacks connected to the illicit tobacco trade taking place last year. These attacks were acts of intimidation by crime syndicates attempting to establish themselves here in South Australia to control the black market in illegal tobacco and vapes.

Australian Border Force estimates that about 75 per cent of the illegal tobacco market in Australia is controlled by organised crime. We certainly do not want to see what occurred in Victoria take hold in South Australia, which is why in South Australia we have begun taking serious action.

As members are aware, the Malinauskas government's $16 million investment has seen the creation of a dedicated tobacco team in CBS, which is working very closely with SAPOL and members of the Operation Eclipse task force, with Operation Eclipse designed to dismantle and disrupt criminal syndicates and prevent further violence and arson, and we are definitely seeing very positive results from that task force.

I want to thank and acknowledge the work of our police commissioner Grant Stevens, Detective Brett Featherby and officers of Operation Eclipse for undertaking that work and commend them for the results they are getting. Only last week alone 14 premises, including gift shops, minimarts, tobacconists and a residential premises were searched across SA, with Operation Eclipse seizing four shipping containers containing $2.3 million worth of illicit tobacco in that operation. This bust follows joint operations by SAPOL and CBS in the South-East the week before, when more than $800,000 worth of illicit tobacco was seized.

I am also pleased to advise this house that CBS has conducted over 20 per cent of its inspections in regional areas. There is no place in this state that illicit tobacco traders can hide. CBS and SAPOL will go where the intel leads, and I want to thank, in particular, honourable members of this place, on both sides of the chamber, who have written to me and given us that intel. This intel has led to seizures, and I would like to be more specific but, as members will understand, these matters are under current investigation and I do not want to prejudice any enforcement action.

The joint task force has also focused on policing our highways, as officers have identified that these are primary pathways for illicit tobacco to enter our state. Officers have successfully intercepted trucks in Tailem Bend, Monteith and Port Augusta, leading to arrests and charging of several individuals from interstate. This bill also enhances information sharing between our enforcement agencies. It also provides the ability to disclose information relating to illicit activity to interested parties, like the owner of the premises or their agent.

Our government is committed to eliminating the sale of illegal tobacco and vaping products and will continue to target dodgy operators and shut down their operations through coordinated raids with the support of agencies like Border Force and SAPOL. We are certainly not going to allow these illegal shops to operate in our community.

As I mentioned, since 1 July Consumer and Business Services have received more than 1,000 reports of suspected illegal activity, which has led to more than 350 inspections and seizure of more than $16 million worth of illicit tobacco and vape products. This includes:

more than 10 million cigarettes;

more than four tons of tobacco;

more than 400 kilograms of shisha; and

more than 55,000 vapes.

Since the new closure orders took effect on 13 December 2024, as Minister for Consumer and Business Affairs I have issued nine short-term closure orders—and I just note some older numbers referring to six by other members—and applied for one long-term closure order, which is currently progressing through the Magistrates Court.

In less than eight months I am proud to say we have made significant progress. This has required tremendous effort from CBS, and I want to thank the dedicated and hard-working tobacco and vaping team in my agency for their ongoing commitment to protecting our community.

I would also like to take this opportunity to make a special mention and express my thanks and appreciation to Emily Sims, our inaugural acting director for tobacco and vapes, who stood up a new task force last year, in a very short amount of time, and it was ready to go from day one on 1 July when CBS officially took over licensing and enforcement responsibilities. Emily's work and dedication has been critical for the early and ongoing success of the work of the Malinauskas government in cracking down on the illegal trade, and on behalf of the government I want to thank Emily and I want to wish her well in the next stage of her career as she is actually taking up a very exciting opportunity in the US.

There is still more work to be done, and we will continue to tackle this threat head-on in our state while assisting agencies across the border. CBS is ably led by former head of the liquor enforcement branch of SAPOL, Commissioner Brett Humphrey, and he has certainly hit the ground running since he started in early January. Our government takes the threat posed by the relentless illicit tobacco industry extremely seriously, and we are not underestimating the challenge ahead of us. Illicit tobacco and vapes are prevalent in our community, and they do pose a serious risk. CBS, in conjunction with SAPOL, Border Force, SA Health and other agencies, is continuing to take action.

We are continuing to carefully consider any intelligence we receive, and we expect to continue to make more seizures in the coming months. We are committed to fighting this issue, and this again serves as a stark warning to illicit dealers that we will continue taking the fight to them and we will find them. In South Australia, we certainly do not welcome these kinds of businesses. We are serious about protecting our community and will continue to encourage people to make reports and be our ears to the ground so we can raid these businesses and shut them down. I encourage all members to support this bill, and I commend this bill to the house.

Mr ODENWALDER (Elizabeth) (16:50): I rise to make a very brief contribution to the Statutes Amendment (Tobacco and E-Cigarettes Products—Closure Orders and Offences) Bill 2025, and I do so knowing that it is causing some of my colleagues some mirth because I think I am the only member of this place to have a continuing addiction to tobacco.

Mr Teague: It's not too late.

Mr ODENWALDER: It is never too late; that is exactly right. In fact, I was just asked by the Minister for Health whether this debate is making me want to have a cigarette, and it is not: it is actually having the opposite effect. I have had an on-and-off relationship with alcohol—with tobacco. Let me make it clear: I have no intention to stop drinking alcohol, but I have had a long and difficult relationship—

Mr Teague interjecting:

Mr ODENWALDER: That is right; we could range all over the place here. I do have a long and difficult relationship with tobacco, as all addicts do. I started smoking when I was in my early or mid-teens, when cigarettes I think cost $2.40 a packet. I reckon a packet of Winfield Red was $2.40. Thanks to the work of the Minister for Health and others like him, that price has considerably increased over the years, but nevertheless it has never been quite enough to deter me.

I do in passing want to acknowledge the work of the member for Kaurna, the Minister for Health, for the reforms that he is bringing in today, along with the Minister for Consumer and Business Affairs for some of the work they are doing in this government. I am also aware that the Minister for Health worked with a previous federal Labor government on smoking reforms, including plain packaging. All of those things led to, as I understand, a significant reduction in smoking across the population.

Of course, lately we have seen a growing increase in the use of tobacco and tobacco products, nicotine products, by young people, which is very concerning. I have had long periods of my life when I have not smoked, including recently shorter periods. I have had periods of up to seven years or more when I have not smoked, so I am not a continuous smoker. I am not a 35-year continuous smoker. I do not like to have regrets, but my biggest regret ever is ever starting smoking, having that first cigarette. It is perhaps my only real regret. I have a 25-year-old son who has never had a cigarette and I am certain never will, and I am teaching my younger sons the same thing. It is absolutely the worst thing you could do.

I want to acknowledge both the Minister for Health and the Minister for Consumer and Business Affairs for their joint fight in the Malinauskas government to continue the work of, as I said, previous federal governments in reducing the prevalence of smoking. Now, of course, we have vapes. We apparently have nicotine pouches, which I first learned about yesterday.

The Hon. C.J. Picton: Don't buy them.

Mr ODENWALDER: No. One of my young friends assured me they are less dangerous than vaping, but I am assured by other people in this room that they are not, in fact. In any case, I will continue my efforts to beat tobacco. I think it is important. I do just want to add my voice to this debate as a smoker, on and off, and reassure the Minister for Health that I have heard the warnings, as much as I have largely ignored them over the years. I commend his work.

I support everything in this bill that is being done and everything that the Minister for Consumer Affairs is doing in fighting both tobacco consumption generally and the prevalence of illegal tobacco and nicotine products in our community. I think they are doing enormous damage to the young.

We heard some terrible stories, I think from you, Acting Speaker, earlier on. I think it was you who told the story of the mum of the young child. Perhaps not, perhaps it was someone else. Anyway, it was a terrible story about a year 8 girl, a perfectly normal year 8 girl who had never shown any signs of this sort of thing before, yet suddenly her mother discovered she is vaping.

I think that is happening all over the state, all over the country, perhaps all over the world, because these vapes are so insidious. They have historically been sweet-flavoured and attractive to children, deliberately marketed to children in many cases, and so any attempt to crack down on those products is to be commended. With those few words, I commend the bill to the house.

The Hon. C.J. PICTON (Kaurna—Minister for Health and Wellbeing) (16:55): I would like to thank all the speakers who have spoken as part of this very important debate, but no-one more so than the member for Elizabeth with that great contribution. Often there are no more passionate advocates for young people to not take up smoking than smokers themselves, and I thank the member for Elizabeth for talking about his battles in terms of nicotine addiction over his life.

The member said that one of the things he regrets was having that first cigarette. I am very proud of myself through my life that I have never had a cigarette. I have always been fearful of becoming addicted to nicotine and therefore have never even started. But I know how difficult it is for so many smokers to quit; it is an incredibly addictive substance. I have spoken in this parliament before about my grandmother, Ruth Picton, who smoked for many decades. I think in her late 70s, early 80s she managed to quit smoking, which was an incredible achievement and something I am very proud of her for doing. No doubt it has paid benefit to her health and she is still with us in her 90s.

We need to continue to take every possible measure that we can to avoid other people facing the fate of so many thousands of South Australians who have died because of tobacco-related disease. We are combating it in relation to new threats, particularly in terms of vaping, but also as has been mentioned in terms of some of these new nicotine products such as pouches, which we have through the passage of legislation towards the end of last year now banned in South Australia.

What this legislation is doing is combating the original threat, which is tobacco and the prolific sale of illegal tobacco largely through organised crime that is happening in this state, which is not only undercutting legitimate small businesses in this state and not only causing untold crime and behaviour of organised crime that we will not accept in this state, but it is also undercutting public health measures in terms of making it less attractive for people to smoke. So it is important that we take these measures.

One of the things that often gets raised with me is, 'You are just doing this to protect your tax revenue.' We do not receive the tax revenue from the excise of cigarettes at the state government level in South Australia or anywhere across the country; that all goes to the federal government. What we are doing as a government is making sure that we take every possible measure that we can in terms of addressing smoking and addressing this organised crime element that is getting a foothold, not just here but across other states.

I want to thank the Minister for Consumer and Business Affairs and her department, who have been working very hard in terms of the delivery of our extra resources that we have put in to combating this illegal trade and also the illegal trade of vapes, as well as South Australia Police who have really stepped up their efforts in terms of their task force combating the illegal tobacco trade in this state and obviously working with their federal counterparts, the federal police. Of course, both agencies are working with people like Border Force, the Taxation Office and other federal agencies to do everything we possibly can to combat this.

In the spirit of that, this is where this legislation has come through, recommendations that we have had from the police where we can go even further than we had in the previous legislation that we passed last year, and we will continue to review if there are any other legal avenues, any other legal law reform measures that we can take that can help, whether it be Consumer and Business Services or South Australia Police, to take action in relation to this illegal trade.

I would like to thank everybody who has been involved in the very quick work over the past couple of months in putting this legislation together. Sometimes our public servants, unfairly, are easy targets in the media and by some politicians. Here, we have seen public servants across a number of agencies working together extremely well, in an extremely quick way, to achieve this policy outcome.

I would like to thank, particularly from my agency, Preventive Health SA, Marina Bowshall, the Chief Executive; Mel Bradley; Clinton Cenko; Narelle Perks; and James Bayliss. They have been working very closely with South Australia Police, in particular Brett Featherby and Adrian Daly. I also thank at Consumer and Business Services, Brett Humphrey, the commissioner; Emily Sims; Ellie Stenner; and Claire Zollo; the Small Business Commissioner of South Australia, Nerissa Kilvert; and Olivia Anemouri. I also thank Dylan Anesbury in my office for his work in this. I thank Chad Buchanan in the Minister for Consumer and Business Affairs' office as well for their work in this.

This is important legislation. It will give our agencies more power to be able to combat this trade, and I endorse it to the house.

Bill read a second time.

Third Reading

The Hon. C.J. PICTON (Kaurna—Minister for Health and Wellbeing) (17:02): I move:

That this bill be now read a third time.

Bill read a third time and passed.

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