Legal Cannabis Sales Could Add $10 Billion To Victoria’s Economy
If Victoria, a state in southeast Australia, were to allow a regulated adult-use cannabis industry to operate within its borders, the jurisdiction could witness a boost of as much as $10 billion in gross state product over the next decade.
The projection is part of an economic analysis commissioned by the Penington Institute. The economic analysis also found that a regulated recreational cannabis industry in Victoria could create as many as 17,000 new jobs and generate $2 billion for the government’s public coffers via taxed sales and industry fees.
“These figures were based on a scenario in which Victoria implemented a comprehensive regulatory model developed by the Penington Institute.” reported Cannabiz in its original coverage of the analysis. “The plan outlined 21 control measures, including bans on underage access, advertising and public use, and a licensing system covering cultivation, manufacturing and retail.”
“Penington Institute chief executive John Ryan said the data demonstrated the scale of the economic opportunity, which was currently being occupied by a billion-dollar illegal market.” the outlet also reported.
The recreational-focused analysis was published against a backdrop in which opponents inside and outside of Australia’s government are pushing for stiffer medical cannabis industry regulations. Australia legalized medical cannabis in 2016.
“Given the increasing numbers of Australian using medical cannabis and an increase observed in poor prescribing practices, Ahpra and the National Boards last week released updated guidance to help practitioners meet their obligations. This follows the AMA calling on health ministers to address the issue, in part by providing adequate resources to Ahpra and the National Boards.” reported Hemp Gazette about recently shifting medical cannabis regulations in Australia.
“The AMA is also calling for stricter enforcement to stop medicinal cannabis companies from exploiting special access schemes and avoiding listing products on the Australian Register of Therapeutic Goods (ARTG). The ARTG lists all therapeutic goods that are legally allowed to be supplied in or exported from Australia; including medicines, medical devices, and other therapeutic products.” the outlet also reported.
Australia is on pace for over 200,000 medical cannabis approvals by the end of the year. Last year, Australian doctors issued about 178k approvals by comparison. Australia’s medical cannabis industry imported over 42,000 kilos of medical cannabis products in 2023 alone.
