This proposal has 2 options that would both have effect from 1 July 2023.

Option 1

This option would legalise the production and sale of recreational cannabis in Australia through a tightly regulated model and by establishing the Cannabis Australia National Agency (CANA).

1.  The CANA 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.

2.  The CANA’s departmental costs would be fully recovered by the application fees for production and retail licences.

3.  Sales of recreational cannabis would be restricted to individuals over 18 years of age, with no restrictions on the amount individuals could purchase.

4.  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.

5.  Sales of recreational cannabis to overseas visitors would be permitted.

6.  Individuals would be permitted to grow up to six plants for personal use. Imports of cannabis into Australia would remain illegal.

7.  Sales of recreational cannabis would attract the Goods and Services Tax (GST) as well as an excise of 25% on GST-inclusive sales.

Option 2

Except for Item 7, all other items are the same as Option 1. Under this option, sales of recreational cannabis would attract the GST as well as an excise of 15% on GST inclusive sales.

The market under both options will exclude any existing tobacco, pharmaceutical or alcohol supplier and be structured to be primarily based on co-operatives and sole traders.