Australia federally legalised medicinal cannabis in 2016, and Australia's cannabis market has grown steadily since.
Statista forecasts that Australian cannabis revenue will grow at an annual rate of 3.22 percent, culminating in market volume worth AU$4.53 billion by 2029.
However, Australia’s cannabis industry is still young. Despite there being a strong case for a regulated market, which was outlined in a July 2024 report by the Penington Institute, recreational use is not legal and medical access remains limited and regulated.
Medical cannabis patients have access to various forms of the drug, including flower, oils and tinctures. However, only two medicinal cannabis products, Sativex and Epidyolex, are registered with the Therapeutic Goods Administration, and none are subsidised through the country’s Pharmaceutical Benefits Scheme. Patients who want access to medicinal cannabis must go through special pathways, and doctors who want to prescribe medicinal cannabis have to apply to do so.
In all Australian states and territories except for Tasmania, medicinal cannabis users who drive are at risk of penalty if they test positive for THC during roadside drug testing. This is a significant concern as THC can still be detected for days after it was last used in some patients, well after any impairment from the drug has ended. There has been steady debate regarding the lack of nuance in state-level laws and attempts to amend laws continue.
Public support for recreational cannabis legalisation is growing, with Roy Morgan’s latest data showing 48 percent of Australians now support marijuana legalisation, up 15 percentage points over the past decade.
In 2023, the Australian Greens, the country’s only seat-holding federal party in favour of legalisation, introduced the Legalising Cannabis Bill 2023. Sponsored by the party’s leader Senator David Shoebridge, the bill was Australia’s first parliamentary effort to legalise cannabis.
The legislation proposed that all citizens above the age of 18 can grow up to six plants per household and share homegrown cannabis products with others. Additionally, it proposed allowing individuals to possess up to 50 grams of cannabis.
The Legalising Cannabis Bill was amended based on survey results and expert feedback to address concerns related to underage buying and consumption, as well as quality, packaging and labelling of cannabis products. The Senate Legal and Constitutional Affairs Committee began an inquiry into the Legalising Cannabis Bill 2023 in September 2023 and released its report on May 31, 2024, in which the committee recommended that the Senate not pass the bill.
On November 27, 2024, the parliament voted on the bill, marking the first time the Federal Parliament voted on a plan to legalise recreational cannabis across the country. The result was a 13-to-24 vote against the legalisation.
Following the vote, Shoebridge said on Bluesky, "Labor and the Coalition once again teaming up to vote down law reform the community wants." He promised that they would not give up on legalising cannabis in a post on X, formerly known as Twitter.
Come February 19, 2025, the Legalise Cannabis Party once again called for the legalisation of cannabis. This time, the party highlighted the devastating impact of criminalisation on young people, especially Aboriginal youth, saying that legalisation can break the cycle of youth criminalisation.
“One-third of adults in jail in Australia are Aboriginal, and the numbers are even worse for youth—100 percent in the Northern Territory and 60 percent in NSW,” the party's president, Michael Balderstone, said. “How’s the future looking there? Are we really going to keep investing in child prisons instead of real solutions?”
Supply-wise, the Australian Cannabis Cultivator Guild formed in May 2025, with an ABC News report saying they are calling for changes to the current system as "they are being pushed out of what is currently an import-dominated market."
According to the group, which represents 80 percent of Australian medicinal cannabis growers, Australian farmers are disadvantaged by rigorous and expensive licencing processes and can't compete with cheap imported products.
While personal use cannabis remains illegal at a federal level in Australia, at the state and territory level, the situation is more complex, and each area of Australia has different rules that must be followed. Read on for a breakdown of the laws for medicinal and recreational cannabis in Australia’s six states and two territories, including one that legalised recreational cannabis possession.
In this article
New South Wales
Victoria
Queensland
South Australia
Western Australia
Tasmania
Northern Territory
Australian Capital Territory
Guide to cannabis in Australia: New South Wales
Use, supply and possession of cannabis are illegal in New South Wales (NSW), but first-time offenders with less than 15 grams on hand may only be issued a caution. Up to two cautions can be received; they often come with a referral for drug-related information. In February 2024, the NSW government expanded the program, allowing offenders to complete a drug and alcohol intervention program in place of paying the AU$400 fine.
However, any doctor can prescribe medicinal cannabis if it is determined an appropriate treatment and the doctor has the approvals required to do so. The NSW government has also allocated over AU$9 million to the Centre for Medicinal Cannabis Research and Innovation to educate the community, monitor clinical trials and conduct research into cannabis’ efficacy in treating conditions such as epilepsy and nausea associated with cancer treatments.
Agriculture Minister Tara Moriarty has said she would be open to increasing medicinal cannabis production and reforming state drug laws.
In late 2024, the Labor Party of NSW held a four-day Parliamentary Drug Summit, the first of its kind since 1999, with two days of forums held in regional towns in November and meetings in Sydney on December 4 and 5. Legalise Cannabis MP Jeremy Buckingham also launched an inquiry into the “true socio-economic cost and the opportunities of cannabis legalisation” earlier that year.
The NSW Drug Summit invited individuals and organizations to submit proposals and/or opinions pertaining to the summit's discussions. Over 400 participants and 3,600 written submissions were recorded, and the government received a report on April 3, 2025, which put forward 56 recommendations across key areas including prevention, early intervention, community support, stigma, workforce and reform.
In October 2025, Health Minister Ryan Park said the government would support, or support in principle, more than 50 of the recommendations, including a whole-of-government Alcohol and Other Drug Strategy to guide policy for the next decade and reforms to the Early Drug Diversion Initiative.
More recently, the Minns ministry's Minister of Roads Jenny Aitchison introduced the Road Transport Legislation Amendment (Medical Cannabis and Driving Offences) Bill in June of 2026, proposing a lab-tested THC threshold system with a warning/strikes model for registered patients. As of August 2026, this bill had passed the Legislative Assembly and was being reviewed by the Legislative Council.
Guide to cannabis in Australia: Victoria
Victoria was the first state to legalise medical marijuana use, and young children living with epilepsy were the first to gain access. Medical cannabis can be prescribed by any physician to a patient with any medical condition if the physician believes it is clinically appropriate and has obtained the necessary approval from the relevant regulatory body.
Recreational cannabis possession and use is a criminal offence in Victoria, but similar to New South Wales, those caught with a first offence of 50 grams or less are typically given a caution and directions to attend drug counselling. It’s more serious if there are additional charges or if a person is found with over 50 grams; 250 grams, or 10 plants, is considered a traffickable quantity of cannabis.
While the current Labor Party of Victoria has expressed a willingness to explore reform, a private member's bill for personal use cannabis reform put forth in 2023 did not receive government support. A decriminalisation motion put forward by Legalise Cannabis MP David Ettershank was also voted down in 2025, weeks after delegates at Victorian Labor's own state conference had voted in favour of legalising and decriminalising cannabis.
The Cannabis Legalisation Plebiscite Bill 2026, introduced by David Ettershank in July 2026, was Legalise Cannabis Victoria's most recent attempt at reform. If passed, it would have asked voters in Victoria whether they supported legalisation; while the results would have been non-binding, it would have made the people's will clear on the matter. However, the bill was voted down by both major parties a month later.
In 2024, the government launched a closed-circuit trial in partnership with Swinburne University to assess the driving abilities of medical cannabis users. Under the current law, drivers found with any trace of THC in their saliva face a mandatory licence suspension and fines, even though THC is detectable for hours to a day after ingestion.
The trial was scheduled to begin in September 2024 and last 18 months but has been repeatedly delayed. As of August 2026, patient recruitment has concluded, and control-group testing is underway, but the government does not expect Swinburne's final report until 2027.
However, the Roads and Road Safety Legislation Amendment Bill 2024 did pass both houses of the Victorian Parliament and took effect in March 2025. The amendment provides magistrates the discretion to evaluate individual cases in which drivers holding valid medicinal cannabis prescriptions test positive for THC but show no signs of impairment.
Guide to cannabis in Australia: Queensland
In Queensland, growing cannabis and recreational use are illegal under the Drugs Misuse Act 1986; unlawful possession, supply, production and trafficking have maximum penalties between 15 and 25 years imprisonment, depending on circumstances such as how much cannabis is involved.
Medicinal use is less frowned upon in Queensland as any registered medical practitioner in the state can prescribe medicinal cannabis if clinically appropriate. Previously, the medical practitioner must have obtained Commonwealth approval in most circumstances.
However, after legislation changes in June 2020, any Queensland doctor can prescribe Schedule 4 CBD or Schedule 8 THC or CBD oil products without formal approval from state health authorities, although for most unregistered products, they still require Commonwealth (TGA) approval via the Special Access Scheme or Authorised Prescriber pathway, and Queensland Health approval is still required specifically when prescribing Schedule 8 products to a drug-dependent patient.
Medicinal cannabis can be administered via vapour, capsules, sprays or tinctures — smoking cannabis is not allowed in Queensland. Advertising medicinal cannabis is restricted to the medical, wholesale and pharmaceutical professions only.
Following Queensland's October 2024 election, the incoming LNP government confirmed that, rather than expand reform, it would repeal Labor's existing drug-diversion program. The program let people caught with small quantities of cannabis for personal use avoid criminal charges for their first three offenses.
In March 2026, the Crisafulli LNP government introduced the Expanding Adult Crime, Adult Time and Taking a Strong Stance on Drugs and Antisocial Behaviour Bill 2026, cutting diversion down to a single chance for first-time offenders only. Any offense after that draws a fine or criminal charge. The bill passed in Queensland Parliament in April 2026.
Guide to cannabis in Australia: South Australia
Cannabis flower, cannabis oil and cannabis resin are all illegal to keep, use, grow, sell or give away in South Australia. Possession for personal use can be penalised with an expiation, which is a fine without a criminal conviction. Large-scale trafficking or selling can attract big penalties of up to AU$1 million, 15 years to life imprisonment or both.
Those looking for medical cannabis products can obtain them via prescription from an authorised medical practitioner in the region. For Schedule 8 products containing THC, approval under South Australian Controlled Substances legislation is also often required, although there are exemptions for patients aged 70 or older, or for palliative care patients.
As is the case in all Australian states and territories except for Tasmania, medical cannabis users are penalised if they test positive for THC during roadside testing, a concern due to the length of time it remains in the system even after any high has passed.
Despite South Australia having the most supporters for cannabis legalisation, reformation attempts have been largely unsuccessful. Back in 2022, former Greens MLC Tammy Franks introduced the Cannabis Legalisation Bill 2022 to legalise cannabis in SA. However, both major parties opposed the bill and it did not pass.
In September 2024, a joint committee led by Franks with members from several parties, put forward an interim report with 13 unanimous recommendations. Among them was a call to reform zero tolerance roadside drug-testing laws to protect medicinal cannabis users in the state. Franks left the Greens in 2025, and then lost her seat entirely in South Australia's March 2026 election.
Neither the governing Labor Party nor the Liberal opposition has introduced cannabis reform legislation or made it a stated policy priority.
Guide to cannabis in Australia: Western Australia
Even though Western Australia previously decriminalised cannabis in 2004, Liberal Premier Colin Barnett repealed the decision in 2011 as part of a “tough on crime” approach.
Possession of 10 grams or less can lead to a cannabis intervention requirement (CIR). This means the individual can attend a cannabis intervention session instead of facing a criminal conviction. If the person is 18 or older, they may receive only one CIR; however, those younger can receive two. Possessing more than 10 grams can result in a fine of up to AU$2,000, two years in jail, or both. Penalties are more severe for possession of over 100 grams.
Medicinal cannabis is available via prescription from any medical or nurse practitioner in WA, provided they have the required government approval. Prescriptions can be dispensed at any pharmacy. As is the case in most other jurisdictions, driving with THC in your system is an offence in Western Australia.
Legalise Cannabis MPs have made multiple reform attempts in WA. In March 2024, the party introduced a bill to allow possession of up to 50 grams and home cultivation of up to six plants per household; it was debated in June 2024 but rejected. A second bill called for a cannabis legalisation question to be included on the March 2025 state election ballot.
Separately, in September 2024, the Legislative Council approved a Legalise Cannabis-backed motion to review WA's industrial hemp regulations, which MP Brian Walker said could unlock billions in economic value for the state.
The WA Greens also entered the debate, publishing a legalisation plan in February 2025 that called for decriminalising personal possession, legalising home cultivation and updating drug driving laws. They cited Swinburne University research showing prescribed medical THC use has a negligible effect on driving performance, and pointing to Tasmania's existing THC driving defence as a model for WA to follow.
In February 2026, Walker tabled a new bill, the Misuse of Drugs (Lawful Personal Use of Cannabis) Amendment Bill 2026, again proposing a 50 gram possession limit and six-plant home cultivation allowance, with a provision to void existing Cannabis Infringement Notices for now-lawful conduct if the bill passes. As of August 2026, the bill remains tabled and has not passed parliament.
Guide to cannabis in Australia: Tasmania
Prior to July 1, 2021, obtaining medicinal cannabis was fairly complicated in Tasmania — patients had to be referred to a specialist by their general practitioner, and then the specialist would make a decision. Generally, cannabis would only be provided by specialists in limited circumstances once conventional treatment had been unsuccessful.
Now, general practitioners can fill out prescriptions for medicinal cannabis if they believe it is clinically appropriate and if they have both Commonwealth and state approval to do so.
Possession of cannabis is illegal in Tasmania — in fact, any utensil or appliance for preparation, smoking or inhalation of cannabis is illegal and can results in fines of nearly AU$8,000. Trafficking more than 25 grams of oil or 1 kilogram of plant material carries a serious imprisonment term of up to 21 years. However, police may issue up to three warnings for possession of less than 50 grams.
Independent MPs Craig Garland (Braddon) and Helen Burnet launched an e-petition tabled in Parliament on April 16, 2026, calling to end the criminalization of cannabis for personal use and establish a parliamentary inquiry. The Tasmanian Government responded to the petition in August 2026, with Attorney General Guy Barnett confirming it will maintain its harm-minimisation approach and its consistent opposition to decriminalising cannabis for recreational use, citing international drug conventions and alignment with most other Australian jurisdictions.
Guide to cannabis in Australia: Northern Territory
In the Northern Territory, cannabis for personal use does not carry a mandatory imprisonment penalty following the enactment of the Sentencing and Other Amendment Legislation Bill 2022. Instead, judges can now use community-based sentencing options that are focused on rehabilitation.
Possession of less than 50 grams of cannabis in your own home is typically penalised with a fine of up to AU$200. If the fine isn't paid, or the situation goes to court for a different reason, possession of less than 50 grams in your own home carries a maximum fine of 50 penalty units (currently up to AU$9,700), though police may instead issue a smaller on-the-spot infringement notice.
Cultivating cannabis plants is treated more strictly; fewer than five cannabis plants carries a maximum penalty of 200 penalty units or two years' imprisonment. A commercial quantity, 20 or more plants, carries a maximum of 25 years' imprisonment, rising to life imprisonment if the cultivation occurs in the presence of a child.
As for medicinal cannabis, the first NT medicinal cannabis patient filled a script in November 2019. Since January 2022, prescriptions written by doctors in other Australian states or territories can also be dispensed in the NT, widening access beyond NT-based prescribers.
Schedule 8 medicinal cannabis medicines are regulated in the same way as other Schedule 8 medicines such as morphine and oxycodone in the Northern Territory. The government said that there is no need for a prescriber to obtain an authorization prior to prescribing medicinal cannabis for a particular patient, but that they are required to notify the Chief Health Officer should the patient need to receive the medicine for more than two months due to the treatment being successful.
Products containing CBD are Schedule 4, and as such can be prescribed and continued without need for notification.
Guide to cannabis in Australia: Australian Capital Territory
The Australian Capital Territory is the only Australian state or territory In September 2019, the Australian Capital Territory (ACT) passed a bill to legalise the possession of small amounts of cannabis for personal use as of January 31, 2020, if the possessor is 18 years of age or older.
ACT residents who are over 18 can carry up to 50 grams of dry cannabis, or 150 grams of wet material, and can grow as many as two plants per person (or four per household). Exceeding limits precipitates a fine of up to 50 penalty units or imprisonment for up to two years, or both. The same applies to cultivation. Plants must also be grown without use of artificial means such as hydroponics or artificial sources of heat and light, and plants must be grown in an area that isn't accessible by the public, meaning a backyard is not an option.
Medicinal cannabis is available for ACT patients with a number of conditions on a case-by-case basis, prescribed by any medical or nurse practitioner. Most products require Therapeutic Goods Administration (TGA) approval before prescribing, and those containing Schedule 8 controlled substances also require approval from the ACT chief health officer, though TGA-registered products such as Sativex are exempt from that federal approval step.
It's important to note that the ACT’s laws conflict with federal laws, which still prohibit the recreational use of cannabis. The territory has also . While federal lawmakers have not taken aim at the territory's cannabis laws, they have attempted to overturn its decriminalisation of small quantities of hard drugs in the past. However, in October 2023, Senator Michaelia Cash's Australian Capital Territory Dangerous Drugs Bill 2023 was defeated in the Senate, with Labor and the Greens affirming the ACT's right to self-legislate.
This is an updated version of an article first published by the Investing News Network in 2021.
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Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
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