A University of Western Australia study has found that legalising recreational cannabis in the state could generate close to A$250 million in annual revenue during the first five years of operation.
The research, commissioned by Legalise Cannabis WA, determined that a 25% tax on adult-use cannabis would bring in roughly $137 million in direct tax revenue, based on projected annual sales of around $686 million.
Business licensing fees for cannabis retailers would contribute an additional estimated $6.5 million to state revenue each year.
The research team also factored in current law enforcement costs before arriving at a total projected benefit of $243.5 million annually.
The report — titled An Economic Case to Legalise Cannabis in Western Australia — drew on data from sources including the Australian National Drug Strategy Survey, the Australian Crime Commission, the Australian Criminal Intelligence Commission, and the National Drug and Alcohol Research Centre at the University of NSW.
It was commissioned by Legalise Cannabis WA.
The party's MP Dr Brian Walker told ABC Radio Perth: "We wanted to find out the actual truth on this, and we commissioned this not expecting any particular result.
"This is the first time anyone has shown their working, and set out exactly how their figures were arrived at. On the spending side we've got stuff like your police — for chasing a cannabis crime — the courts and the corrective services for managing that. Altogether, that's about $100 million per year."
According to the report, 11% of Western Australia's population — around 243,000 people — had used cannabis in the past 12 months, while 37%, or approximately 790,000 people, had tried it at least once in their lifetime.
A government spokesperson said the state remains committed to supporting access to medicinal cannabis, but has no intention of legalising recreational use.
