The Tobacco Amendment Act 2008, which further restricts the promotion of tobacco products, including the banning of vending machines in pubs and clubs, came into effect yesterday.

The new laws mean that:

Retailers may not offer or provide a reward to customers when they purchase tobacco products. This includes discounts on fuel for purchases in-store, promotional gifts and points or credit in a reward scheme, such as Fly Buys.

Vending machines in clubs and pubs have been outlawed and smokers will only be able to buy cigarettes over the bar counter, if the venue chooses to stock them.

Split packets which contain fewer than 20 cigarettes, or that can be divided into portions, have been banned.

Flavoured and scented cigarettes are now unavailable for sale within the territory as are products with packaging deemed to be attractive to children.

Minister for Health, Katy Gallagher said tobacco remained the largest preventable cause of death in Australia, with more than 19,000 people dying from tobacco-related illnesses each year.

The ACT Government was also considering further reforms including banning smoking in cars carrying children.

''[The new laws] demonstrate the Government's commitment to further minimising tobacco promotion and, in so doing, reducing demand and most importantly, to ensure non-smokers are protected from the harmful effects of second hand smoke,'' Ms Gallagher said.

Changes to the direct sale of cigarettes will not come into effect until December 31 for standard tobacconists and a year later for specialist tobacconists.

From those dates retailers will be legally obliged to remove from public view all tobacco products and remove any related signs at the point of sale.

QUIT executive director Fiona Sharkey commended the ACT for leading the pack with the new reforms and as the first state or territory to remove vending machines from licensed venues.

''Anything that discourages the purchase of cigarettes is to be congratulated and measures such as restricting retailer rewards are vital for the anti-smoking message,'' she said.

''We wholeheartedly support the complete ban on displays and advertisements for cigarettes.

''Our research from the Cancer Council shows these displays, always front and centre of stores, act as a psychological trigger for people who have recently quit or in the process of doing so. Often, prompted by the graphic displays, they give in to the impulse.''