Australian Lawmakers To Vote On Cannabis Legalization This Month
Australia’s parliament is set to vote on an adult-use cannabis legalization bill later this month. The Australian Greens are championing the recreational legalization measure, which will receive a vote on November 27th, 2024.
“The bill, introduced by Shoebridge in the upper house in August 2023, would allow adult recreational use and pave the way for legal home grow of up to six plants and a commercial cannabis market across the country.” stated Cannabiz in its local reporting.
If approved, the bill would create “the Cannabis Australia National Agency as a statutory agency to register cannabis strains and regulate activities relating to cannabis including: growing and possessing cannabis plants; manufacturing and selling cannabis products; operating cannabis cafes; and importing and exporting cannabis products.”
At the local level, a recent parliamentary report issued in New South Wales calls for cannabis reform in the Australian state. The 148-page report, which was tabled by the premier and finance committee, called cannabis reform the “only rational course of action.”
In the Australian Capital Territory, where the country’s capital is located, cannabis is already decriminalized and has been since January 2020. Driving while under the influence of cannabis is still prohibited in the territory, as is cannabis commerce and public cannabis consumption.
Cannabis remains prohibited at the federal level in Australia, although medical cannabis is legal in some instances.
Australia’s Parliamentary Budget Office (PBO) estimates that a legalized domestic adult-use cannabis market would generate $28 billion in tax revenue in the first decade. However, researchers at The Conversation “think the PBO’s estimate is too high, and based on the current patterns of cannabis use, $13 billion is a more credible estimate.”
The Conversation estimates “that a new legalised market could attract 3.4 million cannabis users in its first year” and that “Australia consumes 441 tonnes of cannabis per year.”
The researchers at The Conversation note that the “Parliamentary Budget Office supposes a price of $16.95 per gram, of which $3.55 would be tax – 10% GST and 15% excise” and that the “Australian Criminal Intelligence Commission (ACIC) estimates that one gram typically costs $22.50.”
However, The Conversation indicates that “we base our estimated tax revenues on a retail price of $12 per gram, of which $2.51 would be tax” and using those figures is how they arrived at the $13 billion figure.
“The Australia legal cannabis market size was valued at USD 66.0 million in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 29.6% from 2023 to 2030.” Grand View Research stated about Australia’s emerging cannabis industry.
“In July 2020, 41.0% of citizens supported legalization, according to the Australian Institute of Health and Welfare.” Grand View Research also stated.
