A report from the Parliamentary Budget Office (PBO), commissioned by the Greens, has found that legalising recreational cannabis in Australia could generate A$28 billion in tax revenue over a decade.
The Greens' policy platform calls for cannabis to be legalised and regulated through a dedicated Cannabis Australia National Agency (CANA), which would oversee licensing and act as the sole wholesale supplier of legal cannabis.
Under the proposed framework, adults aged 18 and over would be permitted to grow up to six plants at home for personal use, while licensed commercial growers would be required to produce cannabis meeting defined THC and CBD thresholds.
Legal cannabis would be sold through specialist retail outlets in plain packaging carrying visible health warnings, with staff required to complete responsible sale of cannabis training.
Dutch-style cafes would not be allowed under the proposal, though a scheduled two-year review would give regulators the opportunity to amend or update the rules. Advertising would be banned, and safeguarding young people would be a "key objective" of the scheme.
When the policy was announced last year, the Greens emphasised that revenue generation was not the primary motivation, though sales would attract GST and federal excise — funds intended to support drug treatment, health education and harm reduction programs, with a particular focus on mental health.
The PBO report has now attached a dollar figure to those potential fiscal benefits.
Greens Senator and justice spokesperson David Shoebridge told News.com.au: "We know that legalising cannabis reduces harm by keeping people out of the criminal justice system, this report shows how it will also bring in tens of billions of dollars of public revenue as well.
"Legal cannabis makes enormous social and economic sense. When we legalise cannabis we take billions away from organised crime, police and the criminal justice system and we can then spend it on schools, housing, hospitals and social support."
Shoebridge said the projections assumed tourist purchases would account for 10% of total cannabis sales, with scope for that share to increase over time.
He added: "This green gold could become the life blood of many regional areas currently struggling for viable local industries.
"The community has been waiting decades for cannabis legalisation. It's time for the parliament to catch up, and this report provides another 28 billion reasons to get on with it."
