Commonwealth of Australia Explanatory Memoranda Commonwealth of Australia Explanatory Memoranda[Index] [Search] [Download] [Bill] [Help]
2016-2017-2018
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
SENATE
CRIMINAL CODE AND OTHER LEGISLATION AMENDMENT (REMOVING
COMMONWEALTH RESTRICTIONS ON CANNABIS) BILL 2018
EXPLANATORY MEMORANDUM
(Circulated by authority of Senator Leyonhjelm)
CRIMINAL CODE AND OTHER LEGISLATION AMENDMENT (REMOVING
COMMONWEALTH RESTRICTIONS ON CANNABIS) BILL 2018
OUTLINE
The Criminal Code and Other Legislation Amendment (Removing Commonwealth
Restrictions on Cannabis) Bill 2018 removes Commonwealth barriers to the legalisation,
regulation and taxation of cannabis. As such, the passage of this bill would allow any State
or Territory Government to legalise and regulate cannabis.
Adults should be free to make their own choices as long as they do not harm others.
The prohibition of cannabis casts otherwise law-abiding citizens as criminals, increases
pressure on the criminal justice system and props up organised and violent crime.
Legalising cannabis is estimated to reduce annual Commonwealth law enforcement
expenditure by around $100 million and increase annual GST revenue by around
$300 million. A costing from the Parliamentary Budget Office outlining these estimates is
attached to this explanatory memorandum.
Cannabis use is less harmful than alcohol use and tobacco use.1
Legalising cannabis would improve access to cannabis for recreational, medicinal, industrial
and other purposes. Access for medicinal purposes is currently hamstrung through excessive
regulation.
Fears that legalising cannabis would threaten Australia's poppy exports appear unfounded.
Legalising cannabis would violate Australia's treaty obligations (except if Australia
were permitted to make a 'reservation' with respect to these obligations).
These treaty obligations are overseen by the United Nation's International Narcotics
Control Board. This Board also oversees Australia's poppy exports.
In theory, the Board could threaten Australia's poppy exports as retaliation for
Australia legalising cannabis.
However, Uruguay, Canada, the Netherlands, the United States and Jamaica are
subject to the same treaty obligations but have nonetheless taken steps to legalise
cannabis.
In each case the Board has merely responded by stating that such steps violate treaty
obligations. No more serious response has been forthcoming or proposed.
1
http://www.thelancet.com/pdfs/journals/lancet/PIIS0140-6736(10)61462-6.pdf
Page 1 of 16
NOTES ON CLAUSES
Clause 1: Short Title
1. This clause provides for the Bill, when enacted, to be cited as the Criminal Code and
Other Legislation Amendment (Removing Commonwealth Restrictions on Cannabis)
Act 2018.
Clause 2: Commencement
2. This clause provides that the substance of the Bill commences on the day after the
end of the 12 month period beginning on the day the Bill receives the Royal Assent.
Clause 3: Schedules
3. Each Act specified in a Schedule to this Bill is amended or repealed as is set out in
the applicable items in the Schedule. Any other item in a Schedule to this Bill has
effect according to its terms.
Schedule 1--Amendments to the Criminal Code Act 1995
Item 1 - Section 300.2
4. This item inserts a definition of cannabis, being a cannabis plant, any part of a
cannabis plant and any product obtained from a cannabis plant.
Item 2 - Before section 301.1
5. This item inserts section 301.1A. This section prevents a regulation listing cannabis
as a controlled or border controlled drug, plant or precursor, or a serious drug. It
also prevents the Minister determining that cannabis is a controlled or border
controlled drug, plant or precursor, or a serious drug.
6. As a consequence of preventing cannabis from being treated as a controlled or
border controlled drug, plant or precursor, or as a serious drug:
a. a substance will not be treated as a serious drug alternative simply because it is
an alternative to cannabis or has a psychoactive effect that is the same as, or is
substantially similar to, the psychoactive effect of cannabis;
b. a substance will not be a drug analogue simply because it is an analogue of
cannabis; and
c. the serious drug offences in the Commonwealth Criminal Code will not cover:
i. trafficking, cultivating, selling, manufacturing, importing, exporting or
possessing cannabis,
ii. procuring children for these purposes,
Page 2 of 16
iii. supplying cannabis to children, or
iv. exposing children to manufacturing of cannabis.
7. In line with laws banning the involvement of children with alcohol and tobacco,
laws banning the involvement of children with cannabis will remain a matter for
State and Territory Governments.
Item 3 - Section 301.2(2)
8. Subsection 301.2(1) defines 'controlled plant'. Subsection 301.2(2) states that the
purpose of the definition is to permit growing plants that are covered by the United
Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic
Substances to be treated as controlled plants. This item limits this statement of
purpose to 'certain' growing plants covered by the Convention. This limitation
ensures that the statement of purpose is consistent with the exclusion of cannabis
from the meaning of 'controlled plant', achieved by item 2.
Item 4 - After paragraph 320.2(2)(b)
9. This item excludes cannabis from the offence of importing psychoactive substances.
Schedule 2--Amendments to the Criminal Code Regulations 2002
Item 1 - Regulation 5B
10. This item repeals regulation 5B, which lists cannabis as a 'controlled' plant.
Item 2 - Subregulation 5E(1) (table item 1)
11. This item removes cannabis plant from a list of 'border controlled' plants.
Item 3 - Schedule 3 (table items 50, 51, 95 and 238)
12. This item removes cannabis, cannabis resin, HU-210 (a synthetic cannabinoid) and
THC from a list of 'controlled' drugs.
Item 4 - Schedule 4 (table items 34, 35, 36, 71 and 194)
13. This item removes cannabinoids, cannabis, cannabis resin, HU-210 and THC from a
list of 'border controlled' drugs.
Schedule 3--Amendments to the Crimes (Traffic in Narcotic Drugs and Psychotropic
Substances) Act 1990
Item 1 - Section 3
14. This Schedule removes references to cannabis from the Crimes (Traffic in Narcotic
Drugs and Psychotropic Substances) Act 1990. This makes the definitions of
cannabis, cannabis plant and cannabis resin redundant. Accordingly, this item
removes the definitions.
Page 3 of 16
Item 2 - Section 3 (paragraph (c) of the definition of manufacture
15. This item amends the definition of 'manufacture' so that it no longer notes that the
manufacture of a narcotic drug does not include the separation of cannabis or
cannabis resin from a cannabis plant. This element of the definition becomes
unnecessary given item 7, which excludes cannabis from the definition of narcotic
drug.
Item 3 - Paragraph 6(1)(a)
16. This item amends the definition of 'dealing in drugs' so that it no longer includes the
cultivation of cannabis plant with the intention of producing narcotic drugs.
Item 4 - Paragraph 6(1)(b)
17. This item amends the definition of 'dealing in drugs' so that it no longer includes the
separation of cannabis or cannabis resin from a cannabis plant.
Item 5 - Subsection 15(2) (table item dealing with cultivation of cannabis plant)
18. Subsection 15(2) sets maximum penalties for offences involving 'dealing in drugs'
by way of cultivation. Items 3 and 7 ensure that such offences do not cover the
cultivation of cannabis plants. As a result, the reference in subsection 15(2) to the
cultivation of cannabis plants is redundant. Item 5 removes that redundant
reference.
Item 6 - Subsection 15(5) (table)
19. Subsection 15(5) sets maximum penalties for offences involving 'dealing in drugs'
by way of the sale, supply or possession with the intention or sale or supply of a
narcotic drug or psychotropic substance. Item 7 ensures that such offences do not
cover the sale, supply or possession of cannabis. As a result, the reference in
subsection 15(5) to cannabis is redundant. Item 6 removes that redundant reference.
Item 7 - Schedule 2 (table items dealing with Cannabis, Cannabis Oil and Cannabis
Resin)
20. Item 7 removes cannabis, cannabis oil and cannabis resin from the definition of
narcotic drugs.
21. Items 3, 4 and 7 together serve to exclude dealings in cannabis from the definition of
'dealing in drugs' in section 6. This in turn serves to exclude cannabis from the
offences established by the Crimes (Traffic in Narcotic Drugs and Psychotropic
Substances) Act 1990.
Item 8 - Part 1 of Schedule 3 (table item dealing with Tetrahydrocannabinols (THC)
and their alkyl homologues)
22. Item 8 removes tetrahydrocannabinols (THC) from the definition of psychotropic
substances, as well as their alkyl homologues, except where separately specified in
Schedule 3.
Page 4 of 16
23. This serves to exclude dealings in THC from the definition of 'dealing in drugs' in
section 6. This in turn serves to exclude THC from the offences established by the
Crimes (Traffic in Narcotic Drugs and Psychotropic Substances) Act 1990.
Schedule 4--Amendments to the Defence Force Discipline Act 1982
Item 1 - Section 59
24. Section 59 establishes offences for activities involving prohibited drugs. For the
purposes of section 59, 'prohibited drug' means an 'anabolic steroid' or a 'narcotic
substance', and 'narcotic substance' means a 'border controlled drug or plant', as
defined under the Commonwealth Criminal Code.
25. The maximum penalties for the offences established by section 59 currently differ
depending on whether the activity in question involves cannabis or a prohibited drug
other than cannabis. The maximum penalties with respect to cannabis are below or
equal to the maximum penalties with respect to a prohibited drug other than
cannabis.
26. This bill amends the Commonwealth Criminal Code so that cannabis is no longer
considered to be a 'border controlled drug or plant'. As a result, cannabis is no
longer considered to be a prohibited drug for the purposes of section 59.
27. Accordingly, this item amends section 59 to remove redundant references to
penalties where the activity in question involves cannabis.
Schedule 5--Amendments to the Narcotic Drugs Act 1967
28. Schedule 5 limits the Narcotic Drugs Act 1967 to the regulation of drugs other than
cannabis.
Item 1 - Section 3
29. This item amends the simplified outline of the Narcotic Drugs Act 1967 to remove
reference to the regulation of cannabis for medicinal purposes. Reference to the
licensing and permit schemes relating to other drugs is retained.
Item 2 - Section 4 (definition of cannabis)
30. This item removes a narrow definition of cannabis (namely, the tops of the cannabis
plant) and adopts the broad definition in section 300.2 of the Criminal Code inserted
by this bill.
Item 3 - Section 4
31. This item removes redundant definitions relating to cannabis.
Item 4 - Section 4 (definition of licence)
32. This item removes redundant references to cannabis licences from the definition of
licence.
Page 5 of 16
Item 5 - Section 4 (definition of permit)
33. This item removes redundant references to cannabis permits from the definition of
permit.
Item 6 - After section 4
34. This item inserts section 4A.
35. Subsection 4A(1) states that nothing in the Act makes it an offence or contravention
of a civil penalty provision for any person or body corporate to participate in the:
a. cultivation, production, manufacture, extraction, preparation,
b. transportation, distribution, delivery, brokerage, dispatch, trafficking,
c. offering, purchase, sale, trade,
d. exporting, importing,
e. use, consumption or possession of cannabis.
36. What subsection 4A(1) achieves would be achieved even in its absence, given
subsection 4A(3). Hence subsection 4A(2) states that subsection 4A(1) is enacted
for the avoidance of doubt.
37. Subsection 4A(3) states that a reference in the Narcotic Drugs Act 1967 to a drug
does not include a reference to cannabis. This achieves the purpose of limiting the
Narcotic Drugs Act 1967 to the regulation of drugs other than cannabis. This
purpose could have been achieved by amending the Act's definition of drug to
exclude cannabis. However, this would have involved creating a legal fiction.
Alternatively, the purpose could have been achieved by replacing the Act's
references to 'drug' with references to 'drug other than cannabis'. However, this
would have made the wording throughout the Act more long-winded and difficult to
follow.
Item 7 - Section 7A
38. This item repeals section 7A of the Narcotic Drugs Act 1967.
39. Section 7A states that Chapter 2 and section 25A of the Narcotic Drugs Act 1967
apply to the exclusion of any State or Territory law that either provides for the
granting of licences relating to medicinal cannabis, or prohibits activity authorised
by Chapter 2 or section 25A.
40. This bill removes Chapter 2 and section 25A of the Narcotic Drugs Act 1967.
Hence section 7A of the Narcotic Drugs Act 1967 is redundant.
Page 6 of 16
Item 8 - Section 8
41. This item amends section 8, which allows regulations to provide that a substance is a
drug for the purposes of the Narcotic Drugs Act 1967, so that this does not apply to
cannabis.
Item 9 - Chapter 2
42. This item repeals Chapter 2 of the Narcotic Drugs Act 1967.
43. Chapter 2 establishes licences for persons to cultivate, obtain and produce medicinal
cannabis. It then imposes criminal and civil penalties on persons who are licensed
or authorised under a licence, if they cultivate, obtain or produce cannabis, or do
associated things, in a way that is not authorised by the licence.
44. Following the repeal of Chapter 2, the Narcotic Drugs Act 1967 will impose no
criminal or civil penalty on persons who cultivate, obtain or produce cannabis, or do
associated things.
Item 10 - Section 11F
45. This item amends the simplified outline of Chapter 3 of the Narcotic Drugs Act 1967
so it no longer states that manufacture licences authorise manufacture for purposes
relating to medicinal cannabis.
Item 11 - Section 11K
46. Item 6 ensures that the licensing regime for the manufacture of drugs established by
Chapter 3 of the Narcotic Drugs Act 1967 does not apply to cannabis. This makes
section 11K, which provides particular rules for manufacture licences involving
cannabis, redundant. Accordingly, this item repeals section 11K.
Item 12 - Paragraph 11N(i)
47. This item repeals paragraph 11N(i), which requires manufacture licences to specify
the purpose for which cannabis manufactured under the licence is to be supplied. As
the licensing regime will not apply to the manufacture of cannabis, such a
requirement is redundant.
Item 13 - Section 12F
48. Section 12F states that conditions of a manufacture licence may relate to various
things. With the enactment of this bill, manufacture licences will not relate to
cannabis. Accordingly, this item amends section 12F to remove reference to
conditions relating to:
a. the use of names of symbols that may suggest or imply a particular effect upon
humans of a drug or narcotic preparation that contains cannabis;
b. advertising in relation to drugs or narcotic preparations that contain cannabis;
and
Page 7 of 16
c. the labelling of medicinal cannabis products.
Item 14 - Section 12L
49. Section 12L states that requirements in section 11K, which is repealed by item 10 of
this bill, are conditions of a manufacture licence relating to cannabis. This item
repeals section 12L as, with the enactment of this bill, manufacture licences will not
relate to cannabis.
Item 15 - Section 12M
50. Section 12M imposes a condition on manufacture licences relating to cannabis. This
item repeals section 12M as, with the enactment of this bill, manufacture licences
will not relate to cannabis.
Item 16 - Section 14H
51. Section 14H is the simplified outline of Chapter 5, which deals with matters such as
the Secretary's powers and the review of decisions. This item removes from the
simplified outline a reference to directions powers with respect to cannabis and a
reference to the authorisation of State and Territory agencies to carry out activities
relating to cannabis.
Item 17 - Paragraph 14N(h)
52. Section 14N authorises information disclosures by the Secretary in various
circumstances including circumstances relating to medicinal cannabis research. This
item removes the reference to medicinal cannabis research as the Secretary will no
longer gather information relating to medicinal cannabis research under the Narcotic
Drugs Act 1967.
Item 18 - Paragraph 14P(1)(d)
53. This item amends section 14P so that it no longer allows the Secretary to give
directions to past and present licence holders in relation to cannabis.
Item 19 - Section 15
54. This item amends section 15 so that it no longer allows the Secretary to require the
destruction of cannabis.
Item 20 - Section 15B
55. This item amends section 15B so that it no longer states that directions may be given
in respect of cannabis.
Item 21 - Section 15E
56. Section 15E lists decisions that are reviewable decisions. This item removes from
section 15E references to decisions relating to cannabis, as these references are
redundant.
Page 8 of 16
Item 22 - Section 25A
57. Section 25A allows the Secretary to:
a. approve a State or Territory agency to engage in or contract out activities
relating to cannabis; and
b. impose conditions on such an approval.
58. This item repeals section 25A. As a result, following enactment of this Bill, nothing
in the Narcotic Drugs Act 1967 would prevent or constrain a State or Territory
engaging in or contracting out activities relating to cannabis.
Item 23 - Subsection 27(4)
59. Section 27 sets out what regulations made under the Narcotic Drugs Act 1967 may
provide for. This item amends section 27 to remove references to cannabis.
Schedule 5--Amendments to the Therapeutic Goods Act 1989
Item 1 - After section 52E
60. This item prevents the Secretary from applying the Poisons Standard to cannabis, as
defined by section 300.2 of the Criminal Code. Not applying the Poisons Standard
to cannabis will be consistent with the non-application of the Poisons Standard to
nicotine in tobacco prepared and packed for smoking.
Page 9 of 16
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
NARCOTIC DRUGS AND OTHER LEGISLATION AMENDMENT (REMOVING
COMMONWEALTH RESTRICTIONS ON CANNABIS) BILL 2018
This Bill is compatible with the human rights and freedoms recognised or declared in the
international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny)
Act 2011.
Overview of the Bill
The Bill removes Commonwealth barriers to the legalisation, regulation and taxation of
cannabis. Its passage would allow any State or Territory Government to legalise and regulate
cannabis.
Human rights implications
Adults should be free to make their own choices as long as they do not harm others.
The Bill protects the right of self-determination, the right to freely pursue one's economic,
social and cultural development, and the right to freely dispose of one's natural wealth and
resources. These rights are recognised in Article 1 of the International Covenant on
Economic, Social and Cultural Rights and Article 1 of the International Covenant on Civil
and Political Rights.
Conclusion
The Bill is compatible with human rights because it protects the right of self-determination.
Senator David Leyonhjelm
Page 10 of 16
Appendix A--Parliamentary Budget Office Policy Costing
Policy costing--outside the caretaker period
Name of proposal: Legalising marijuana
Summary of proposal: The proposal would legalise all marijuana/cannabis/hemp
use by adults, as well as possession, cultivation,
processing, transport, trade, import and export. No
excise would be imposed on marijuana.
This proposal would also reduce the budgets of relevant
federal agencies including the Australian Federal Police
(AFP), Australian Criminal Intelligence Commission (ACIC),
and the Australian Border Force (ABF) by the level of
funding directly associated with marijuana law
enforcement.
An estimate of the effect of this proposal on total
marijuana usage was also requested.
The proposal would have effect from 1 July 2017.
Person/party requesting the Senator David Leyonhjelm, Liberal Democratic Party
costing:
Did the applicant request the ☒ Yes □ No
costing be confidential:
Date costing request received: 9 August 2016
Date costing completed: 21 September 2016
Expiry date of the costing: Release of the next economic and fiscal outlook report
Costing overview
This proposal would be expected to increase the fiscal balance by $342.0 million and the
underlying cash balance by $292.0 million over the 2016-17 Budget forward estimates period. This
reflects the net impact of an increase in Goods and Services Tax (GST) revenue and a decrease in
federal law enforcement expenses over this period.
The fiscal balance impact of this proposal differs from the underlying cash balance impact
because the expense accrued in relation to GST payments to the states and territories is based
on GST cash collections each month, which lag behind the accrual of GST revenue that occurs
when consumer spending occurs.
Page 11 of 16
As a result of a reduced requirement for law enforcement, this proposal would be expected
to decrease the expenses of the AFP and the ABF by $292.0 million over the forward
estimates period on both a fiscal and underlying cash balance basis. Impacts on other federal
agencies are unlikely to be material or are unable to be quantified.
A detailed breakdown of the financial implications of this proposal over the 2016-17 Budget
forward estimates period is presented at Attachment A. This proposal would have an
ongoing impact that extends beyond the forward estimates period.
This costing is considered to be of low reliability. There is uncertainty regarding the price and
quantity of marijuana currently consumed, and the price and quantity of marijuana that
would be consumed in a newly legalised market. It is also difficult to separately identify
marijuana law enforcement activities, as these are often integrated within broader law
enforcement activities.
Table 1: Financial implications (outturn prices)(a)(b)
Total to
Impact on ($m) 2016-17 2017-18 2018-19 2019-20
2019-20
Fiscal balance - 148.0 97.0 97.0 342.0
Underlying cash balance - 98.0 97.0 97.0 292.0
(a) A positive number represents an increase in the relevant budget balance, a negative number
represents a decrease.
(b) Figures may not sum to totals due to rounding.
- Indicates nil.
Key assumptions
• All states and territories would align with the Commonwealth in fully legalising
marijuana, hemp growing, and the production of hemp for human consumption.
• There would be no restrictions on marijuana production, for example quotas or
restrictive licencing.
• The proportion of supplies made by producers of marijuana under the registration
threshold for GST is the same as the proportion of sales in the general economy.
• This proposal would result in an increase in marijuana supply and demand. It is
estimated that marijuana consumption would increase from approximately 339 tonnes
in 2016-17 to 381 tonnes in 2017-18, 388 tonnes in 2018-19 and 394 tonnes in 2019-20.
- The legalising of marijuana would result in a significant increase in the supply of
marijuana, either through Australian production or imports, with a commensurate
reduction in the price.
- The legalising of marijuana would result in increased demand for marijuana,
reflecting the impact of lower prices and the lifting of penalties on marijuana use.
Page 12 of 16
• There would be no impact on excise collections from the sale of alcohol or tobacco.
- A number of studies have analysed whether marijuana is a complement to, or
substitute for, alcohol and tobacco. However the literature has not reached a
consensus, with the findings of different studies in conflict1.
• While hemp seeds are currently used in a variety of food products in countries where it
is legal to do so, including in foods such as margarines, cereals and hemp milk, or
consumed raw, the level of consumption is relatively small2. Therefore the impact of
legalising the production of hemp seed for human consumption has not been included in
this costing.
• Expenditure on marijuana increases at the same rate as the Consumer Price Index across
the forward estimates period.
• The AFP and ABF are the only federal agencies where a material amount of funding
directly associated with marijuana law enforcement is able to be separately identified.
- As outlined in its 2014-15 annual report, the Australian Crime Commission (now the
ACIC) high risk and emerging drugs intelligence operations primarily focus on drugs
other than cannabis.
- Any reduction in staffing numbers in federal agencies would be managed through
natural attrition across the forward estimates.
- The vast majority of the budget impact of marijuana law enforcement on the court
and prison systems (including revenue raised from penalties) would be on state and
territory governments.
• The Parliamentary Budget Office (PBO) has assumed that the proportions of the total
budgets for the AFP and ABF that are directly relevant to illicit drug law enforcement are
the same as those used previously by the National Drug and Alcohol Research Centre3.
These amounts were then adjusted to reflect the estimated proportion of law
enforcement activities that are directly relevant to cannabis.
Methodology
The GST impact of this proposal was calculated by applying the 10 per cent GST rate to
estimated household consumption expenditure on marijuana under the proposal. The
departmental expenses associated with the administration of applying the GST to marijuana
products was calculated by applying the ratio of current GST administration expenses and
revenue.
The proportion of AFP and ABF law enforcement budgets directly relevant to cannabis was
estimated by multiplying total illicit drug law enforcement spending by the proportion of all
illicit drug arrests that related to cannabis.
1
Clements et al (2010).
2
Crawford et al (2012).
3
Ritter et al (2013).
Page 13 of 16
The PBO has not made any assessment of the impact of this proposal on state and territory
government budgets.
Revenue estimates have been rounded to the nearest $50 million. Departmental expenses
have been rounded to the nearest $1 million.
Data sources
Australian Bureau of Statistics, 2012. The Non-Observed Economy and Australia's GDP,
Canberra: Australian Bureau of Statistics.
Australian Crime Commission, 2015. 2014-15 Annual Report, Canberra: Australian Criminal
Intelligence Commission.
Australian Criminal Intelligence Commission, 2016. Illicit Drug Data Report 2014-15, Canberra:
Australian Criminal Intelligence Commission.
Australian Federal Police, 2016. 2015-16 Annual Report, Canberra: Australian Federal Police.
Australian Institute of Health and Welfare, 2013. National Drug Strategy Household Survey,
Canberra: Australian Institute of Health and Welfare.
Australian Public Service Commission, 2016. APS Statistical Bulletin 2015-16, Canberra:
Australian Public Service Commission.
Clements, K., Lan, Y. & Zhao, X., 2010. The demands for marijuana, tobacco and alcohol: inter-
commodity interactions with uncertainty. Empirical Economics, 39(1), pp. 203-239.
Commonwealth of Australia, 2016-17. Attorney General's Portfolio Budget Statements,
Canberra: Commonwealth of Australia.
Commonwealth of Australia, 2016-17. Department of Immigration and Border Protection
Portfolio Budget Statements, Canberra: Commonwealth of Australia.
Commonwealth of Australia, 2016. 2016-17 Budget, Canberra: Commonwealth of Australia.
Crawford, F., Deards, B., Moir, B. & Thompson, N., 2012. Human consumption of hemp seed:
prospects for Australian production, Canberra: Department of Agriculture, Fisheries and
Forestry.
Ritter, A., McLeod, R. & Shanahan, M., 2013. Government drug policy expenditure in Australia
- 2009/10. Sydney: National Drug and Alcohol Research Centre.
Williams, J., 2004. The effects of price and policy on marijuana use: what can be learned from
the Australian experience?. Health Economics, 13(2), pp. 123-137.
Page 14 of 16
Attachment A - Legalising marijuana--
financial implications
The following tables provide a breakdown of the estimated impacts of legalising marijuana
from 1 July 2017 over the 2016-17 Budget forward estimates period on a fiscal and underlying
cash balance basis.
Table A1: Legalising marijuana--Fiscal balance(a)(b)
Total to
($m) 2016-17 2017-18 2018-19 2019-20
2019-20
GST revenue - 350.0 300.0 250.0 900.0
GST expenses to the states
- -297.0 -297.0 -248.0 -842.0
and territories
Departmental expenses -
- -3.0 -3.0 -2.0 -8.0
Australian Taxation Office
Net GST impact - 50.0 .. .. 50.0
Departmental expenses -
- 52.0 51.0 51.0 154.0
AFP
Departmental expenses -
- 46.0 46.0 46.0 138.0
ABF
Net law enforcement
- 98.0 97.0 97.0 292.0
impact
Total - 148.0 97.0 97.0 342.0
(a) A positive number for the fiscal balance indicates an increase in revenue or a decrease in expenses
or net capital investment in accrual terms. A negative number for the fiscal balance indicates a
decrease in revenue or an increase in expenses or net capital investment in accrual terms.
(b) Figures may not sum to totals due to rounding.
.. Not zero but rounded to zero.
- Indicates nil.
Page 15 of 16
Table A2: Legalising marijuana--Underlying cash balance(a)(b)
Total to
($m) 2016-17 2017-18 2018-19 2019-20
2019-20
GST receipts - 300.0 300.0 250.0 850.0
GST payments to the -
-297.0 -297.0 -248.0 -842.0
states and territories
Departmental expenses - -
-3.0 -3.0 -2.0 -8.0
Australian Taxation Office
Net GST impact - - - - -
Departmental expenses - -
52.0 51.0 51.0 154.0
AFP
Departmental expenses - -
46.0 46.0 46.0 138.0
ABF
Net law enforcement -
98.0 97.0 97.0 292.0
impact
Total - 98.0 97.0 97.0 292.0
(a) A positive number for the underlying cash balance indicates an increase in receipts or a decrease in
outlays or net capital investment in cash terms. A negative number for the underlying cash balance
indicates a decrease in receipts or an increase in outlays or net capital investment in cash terms.
(b) Figures may not sum to totals due to rounding.
- Indicates nil.
Page 16 of 16