This proposal would legalise the production and sale of recreational cannabis in Australia through a tightly regulated model, as follows.

• A new agency, the Australian Cannabis Agency (the Agency), would be established to oversee the legalisation and regulation of recreational cannabis. The Agency would act as the sole wholesaler between producers and retail outlets.
• The Agency would set the wholesale price for cannabis, based initially on the Australian street price for cannabis. The price would then fluctuate according to market forces.
• The Agency would be responsible for issuing production licences to cultivators and sale licences to private retail outlets.
• Application fees for production licences would be set at $3,500 per application. Annual fees for producers would vary, based on the size of their plant canopies. Tier 1 producers, whose plant canopies are 2,000 square feet or less, would be charged $1,750 per year. Tier 2 producers, whose plant canopies are between 2,000 and 10,000 square feet, would be charged $2,000 per year. Tier 3 producers, whose plant canopies are over 10,000 square feet, would be charged $2,300 per year.
• Application fees for retail licences would be set at $1,500 per application and annual fees for retail outlets would be set at $1,000 per year.
• Sales of recreational cannabis would be restricted to individuals over 18 years of age, with no restrictions on the amount individuals could purchase.
• Sales of recreational cannabis to overseas visitors would be permitted.
• Individuals would be permitted to grow up to six plants for personal use. Imports of cannabis into Australia would remain illegal.
• Sales of recreational cannabis would attract the goods and services tax (GST) as well as an excise.
• An excise rate of 25 per cent would apply on all GST-inclusive sales of recreational cannabis.
• Penalties would apply for the sale of cannabis by retail outlets to individuals under 18 years of age at similar rates to the penalties for the sale of alcohol to individuals under 18 years of age.

The proposal would have effect from 1 July 2019.