The proposal consists of 7 components and would commence from 1 July 2022.

Component 1 would fund a scoping study to determine the areas of greatest need and types of services, and suitable locations for new medically supervised injecting centres (the centres) in Australian capital cities.

Component 2 would establish one new centre in each capital city. Funding would be ongoing.

• The centres would be closely based on the existing Sydney Medically Supervised Injecting Centre (the existing Sydney centre); including the hours of operation, size, staffing and services offered.
• They would be established in the following financial years:
  • 2022-23: Sydney, Melbourne, Brisbane, Darwin
  • 2023-24: Adelaide, Perth, Canberra, Hobart.

Component 3 would establish a drug testing agency with a number of drug testing sites in capital cities and regional hubs.

• The number of drug testing sites would be as follows:
  • 2022-23: 6 drug testing sites in capital cities
  • 2023-24: 10 drug testing sites in capital cities
  • 2024-25: 12 drug testing sites in capital cities and 2 in regional hubs
  • 2025-26 onwards: 14 drug testing sites in capital cities and 4 in regional hubs.
• Each site would occupy 50m² of commercial space outside of public thoroughfares and would operate 3 nights per week from 4:00pm to 2:00am, with an additional hour per night for opening and closing operations (a total of 11 hours per day).
• Each site would employ 2 alcohol and drug workers (Certificate IV qualified), one administrative officer and one security guard. Office costs would include heating, cooling, lighting, rent, telecommunications, insurance and fit out.
• Each site would have an infrared spectroscope, valued at around $35,000 USD with a per use cost of approximately $2.50 AUD in 2020.
• Each pill test consultation would take around 1 hour to complete.

Component 4 would provide free pill testing services at Australian music festivals.

Component 5 would provide an additional $140,000 per year to the Department of Health to coordinate data collection, analysis and communication of results of the drug tests.

Component 6 would fully fund pharmacotherapy services to assist with opioid addiction treatment.

• The Australian Government would provide dedicated funding to state and territory governments a standardised amount to remunerate dispensing, administration and supervised dosing at approved clinics and pharmacies. 
  • Currently, the Australian Government funds the pharmaceuticals used for the treatment of opioid dependence – buprenorphine, buprenorphine with naloxone and methadone – through the Pharmaceutical Benefits Scheme (PBS) under alternative arrangements provided under section 100 of the National Health Act 1953. Renumeration for dispensing is not provided under section 100.

Component 7 would legalise the production and sale of recreational cannabis in Australia through a tightly regulated model and by establishing the Australian Cannabis Agency (the agency).

• The agency would:
  • be established to oversee the legalisation and regulation of recreational cannabis
  • act as the sole wholesaler between producers and retail outlets
  • set the wholesale price of cannabis, based initially on the Australian street price of cannabis and which would then fluctuate according to market forces
  • 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 with plant canopies less than 186m² (2,000 square feet) would be charged $1,750 per year.
  • Tier 2 producers with plant canopies between 186 m² and 929 m² (10,000 square feet) would be charged $2,000 per year.
  • Tier 3 producers with plant canopies over 929 m² 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 (including overseas visitors) over 18 years of age with no restrictions on the amount individuals could purchase
  • attract the Goods and Services Tax (GST) as well as an excise of 25% on GST-inclusive sales.
• Individuals would be permitted to grow up to six plants for personal use. Imports of cannabis into Australia would remain illegal.
• Penalties would apply for the sale of cannabis by retail outlets to individual under 18 years of age at similar rates to the penalties for the sale of alcohol to individuals under 18 years of age.