South Australia will have the harshest fines in the nation for the commercial sale of illegal cigarettes and vapes under new laws introduced to State Parliament.

The new laws – developed in consultation with Police Commissioner Grant Stevens – are aimed at reducing criminal activity and the risks posed to the community by the illicit tobacco and e-cigarette trade.

The laws include:

• the introduction of greater police enforcement powers
• 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
• enhanced information sharing powers to support enforcement operations and allow for improved communication with owners, building managers and the public.

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.

SA will have the harshest fines of any state or territory in the nation for supplying or possessing "commercial" and "large commercial" quantities of prohibited products.

At the highest level, anyone in possession of a "large commercial" quantity will face a fine of up to $2.1 million for a first offence and up to $4.2 million for a second or subsequent offence.

A body corporate will face an initial fine of up to $4.5 million and then $6.6 million for a second or subsequent offence. Currently, the highest penalty in the Act is up to $1.5 million for corporations and $700,000 for an individual.

New provisions will allow owners to end a retail lease if the tenant has been issued a long-term closure order by authorities.

An offence will also be introduced to penalise owners, or a person responsible for a premises, who actively allow their space to be used for prohibited conduct under this law.

Police Commissioner Grant Stevens said SAPOL welcomed any steps "that create a deterrent to get involved in this illegal activity and further disrupt those already involved in the illicit tobacco market".

"SAPOL has had input into the Bill and suggested a range of legislative reforms we believe would substantially contribute to creating a hostile environment in South Australia for those who sell illicit tobacco and those who facilitate this activity, as well as giving Consumer and Business Services and police increased disruption powers," he said.

Preventive Health SA Chief Executive Marina Bowshall said it was great to see the legislation evolving and adapting to new challenges.

"The best way to protect the public is ensuring that our tobacco and e-cigarette restrictions are working to protect future generations,"
Ms Bowshall said.

Brett Humphrey, Commissioner for Consumer Affairs, said that empowering landlords to terminate leases was a significant step forward.

"Having the power to take action against those property owners or landlords who are complicit in this criminal activity, will send a clear message – supporting the sale of illicit tobacco and vapes is not just bad for public health, it’s bad for business."