A vendor selling an illegal vape could face up to seven years in prison or a million dollar fine as the NSW government cracks down on supply of the products.
Health Minister Ryan Park introduced a bill to parliament on Tuesday aimed at halting the scourge of young vapers in the state.
The maximum penalty will be increased from $1650 to approximately $1.54 million, with prison sentences increasing from six months to seven years.
Mr Park said the intention is to target suppliers rather than individual users of the nicotine-laden products.
"The prevalence of illegal vaping devices in our community, and in particular among our young people, is deeply concerning," he said.
"We have a once-in-a-generation opportunity to stem the tide of this public health challenge."
Over the past year, the government has seized more than 300,000 vapes, with 42,000 seized between July and September.
NSW Health Acting Chief Health Officer Michelle Cretikos encouraged individuals to report retailers selling the products.
"We are committed to removing as many illegal vapes as we can, particularly to stop them falling into the hands of young people," she said.
"We don't want people to vape, and if they are trying to quit smoking or to quit vaping, we have supports in place to help."
In October the state government announced sweeping reforms to illicit tobacco and vape sales, doubling the maximum penalties and hiring 14 extra enforcement officers.
The new laws will align NSW with the federal government, which passed similar legislation in October limiting vaping sales to pharmacies.
