Narcotic Drugs Amendment (Fees) Regulations 2021

Administered by Department of Health, Disability and Ageing

Legislation au F2021L00757 Regulations Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

 

 

Narcotic Drugs Act 1967

 

Narcotic Drugs Amendment (Fees) Regulations 2021

 

 

The instrument increases fees for licences, fees and related inspections for medicinal cannabis related activities to support the recovery of the costs of administering the medicinal cannabis scheme.

 

The Narcotic Drugs Act 1967 (the Act) gives effect to certain of Australia’s obligations under the Single Convention on Narcotic Drugs 1961 (the Convention), as in force from time to time. The objective of the Convention is to establish a framework to both prevent abuse and diversion of controlled narcotics and to ensure the availability of such drugs for medicinal and scientific purposes.

 

Section 27 of the Act provides for the Governor-General to make regulations prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

 

Amongst other matters, the regulations may prescribe fees in respect of matters under the Act or the regulations made under the Act.

 

The purpose of the Narcotic Drugs Amendment (Fees) Regulations 2021 (the Regulations) is to amend the Narcotic Drugs Regulation 2016 (the Principal Regulation) to increase the fees set out in the Principal Regulation for the financial year 2021-22. The Regulations complement the Narcotic Drugs (Licence Charges) Amendment (Charge Amounts and Other Measures) Regulations 2021 which increase charges for licences for medicinal cannabis related activities for the 2021-2022 financial year.

 

The increase applies, for example, to: application fees for a medicinal cannabis licence, a cannabis research licence or a cannabis-related manufacture licence or their variation; application fees for permits or their variation; and for inspection fees.

 

These fees reflect recovery of the costs of administering the Act, consistent with the Australian Government Cost Recovery Guidelines.

 

The increase is based on an indexation formula used to calculate adjustments to fees and charges based on the relevant work effort, and average salary rates for the Department of Health. The inspection fee is increased by 0.5%. The application fees is increased by an average of approximately 0.9%. The small differences between the increases for the individual fees is a result of more specific assessments of the work effort and the difference in levels at which different tasks are undertaken.

 

In applying this increase, the rounding policy is for all amounts, to round to the nearest $10.

 

In relation to consultation, the ODC undertook extensive stakeholder consultation during the review of the ODC’s fees and charges, which led to the introduction of a new activities based costing model for ODC in 2020, and this included indicating to industry the new framework would include annual indexation of fees and charges. Further consultation with industry continues as part of ongoing industry stakeholder events relating to the ODC’s reforms process.

 

Details of the Regulations are set out in the Attachment.

 

The Act specifies no conditions that need to be satisfied before the power to make the Regulations may be exercised.

 

The Regulations are a legislative instrument for the purposes of the Legislation Act 2003.

 

The Regulations commence on 1 July 2021.

 

 

 

Authority:  Section 27 of the Narcotic Drugs Act 1967


Details of the Narcotic Drugs Amendment (Fees) Regulations 2021

 

Section 1 – Name

This section provides for the Regulations to be referred to as the Narcotic Drugs Amendment (Fees) Regulations 2021.

 

Section 2 – Commencement

This section provides for the commencement of the Regulations on 1 July 2021.

 

Section 3 – Authority

This section provides that the Regulations are made under the Narcotic Drugs Act 1967.

 

Section 4 – Schedules

This section provides that each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to the Regulations has effect according to its terms.

 

 

Schedule 1 – Amendments

 

Part 1 – Fees

 

Narcotic Drugs Regulation 2016

 

Item 1 – Subsection 54(1) – Inspection fees

This item amends the fee for an inspection to increase it from $3,650 to $3,670.

 

Item 2 – New section 61 - Application

This item inserts a new section 61, which provides for the amendments of the amounts by Item 1 and Item 3 to apply only to inspections or applications made on or after 1 July 2021.

 

Item 3 – Amendments of listed provisions

This item sets out a table of amendments to listed provisions of Schedule 1 of the Narcotic Drugs Regulation 2016. The effect of these amendments is to increase the application fees for licences and permits, and for variations, in line with the indexation method and rounding policy.


Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Narcotic Drugs Amendment (Fees) Regulations 2021

 

The Narcotic Drugs Amendment (Fees) Regulations 2021 (the Regulations) are compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview of the Regulations

The Regulations are made under section 27 of the Narcotic Drugs Act 1967.

The purpose of the Regulations is to amend the Narcotic Drugs Regulation 2016 (the Main Regulation) to increase the fees set out in those regulations, for the financial year 2021-22.

The increase applies, for example, to: application fees for a medicinal cannabis licence, a cannabis research licence or a cannabis-related manufacture licence or their variation; application fees for permits or their variation; and for inspection fees.

These fees are designed to reflect recovery of the costs of administering the Act, consistent with the Australian Government Cost Recovery Guidelines.

The increase is based on an indexation formula used to calculate adjustments to fees and charges based on the relevant work effort, and average salary rates for the Department of Health. The inspection fee is increased by 0.5%. The application fees is increased by an average of approximately 0.9%. The small differences between the increases for the individual fees is a result of more specific assessments of the work effort and the difference in levels at which different tasks are undertaken.

In applying this increase, the rounding policy was for all amounts, to round to the nearest $10.

 

Human rights implications

As the Regulations do not introduce any changes to the Main Regulation other than to implement the changes outlined above, they do not engage any of the applicable rights or freedoms.

 

Conclusion

The Regulations are compatible with human rights as they do not raise any human rights issues.

 

Greg Hunt

Minister for Health and Aged Care

Overview

The Narcotic Drugs Act 1967 was enacted to address the need for a legal framework to manage the regulation of narcotic drugs in Australia, aligning with the country’s obligations under the Single Convention on Narcotic Drugs 1961. This Act aims to balance the prevention of drug abuse and diversion with ensuring the availability of narcotics for medicinal and scientific purposes. The Narcotic Drugs Amendment (Fees) Regulations 2021, made under section 27 of the Act, were introduced to adjust the fees for licences, fees, and related inspections for medicinal cannabis activities to recover the costs of administering the medicinal cannabis scheme. The objective of these amendments is to index fees based on relevant work effort and average salary rates for the Department of Health, with specific increases for inspection and application fees. The Regulations are compatible with human rights as they do not introduce changes that would affect any of the rights or freedoms recognised under relevant international instruments. The Narcotic Drugs Amendment (Fees) Regulations 2021 were enacted to amend the Narcotic Drugs Regulation 2016, specifically increasing fees for the financial year 2021-22. The fees affected include those for applications for medicinal cannabis licences, cannabis research licences, cannabis-related manufacture licences, permits, and their variations, as well as inspection fees. These fee adjustments are intended to reflect the costs of administering the Narcotic Drugs Act in accordance with the Australian Government Cost Recovery Guidelines. The increase was calculated using an indexation formula based on work effort and average salary rates within the Department of Health. The inspection fees increased by 0.5%, while the application fees saw an average increase of approximately 0.9%. The slight variations in the increases are due to more specific assessments of work effort and the levels at which different tasks are undertaken. All fee amounts were rounded to the nearest $10. These Regulations do not raise any human rights issues and are compatible with the human rights and freedoms recognised under international instruments.

Scope and Application

The Narcotic Drugs Amendment (Fees) Regulations 2021 applies to various entities and individuals involved in medicinal cannabis-related activities in Australia. The Act itself is an instrument that gives effect to Australia's obligations under the Single Convention on Narcotic Drugs 1961, focusing on the prevention of abuse and diversion of controlled narcotics while ensuring their availability for medicinal and scientific purposes. The Act applies nationally, encompassing the entire Commonwealth of Australia. The Narcotic Drugs Amendment (Fees) Regulations 2021 amends the Narcotic Drugs Regulation 2016 to increase fees for licences, permits, and inspections related to medicinal cannabis. These fees are adjusted to reflect the costs of administering the scheme, in line with Australian Government Cost Recovery Guidelines. The increase in fees, calculated through an indexation formula based on work effort and average salary rates, applies to application fees for medicinal cannabis licences, cannabis research licences, cannabis-related manufacture licences, permits, and their variations, as well as inspection fees. The Regulations ensure these fees are rounded to the nearest $10, reflecting a meticulous approach to financial adjustments. The Regulations do not specify any particular exclusions, exemptions, or thresholds beyond the outlined increases, and they do not introduce new rights or freedoms beyond the financial adjustments to the fees.

Key Provisions

The Narcotic Drugs Amendment (Fees) Regulations 2021 (the Regulations) are instrumental in adjusting the fees associated with medicinal cannabis-related activities under the Narcotic Drugs Act 1967 (the Act). These adjustments are primarily intended to recover the costs of administering the medicinal cannabis scheme. The key provisions of the Regulations include the amendments to the Narcotic Drugs Regulation 2016 (the Principal Regulation) to increase fees for inspections, applications for various licences and permits, and their variations (see Schedule 1, Part 1). For instance, the fee for an inspection is increased from $3,650 to $3,670, and the application fees for various licences and permits are adjusted in line with an indexation formula, rounding to the nearest $10 (Section 4, Item 1 and Item 3). The Regulations impose specific obligations on entities and individuals subject to the Act, particularly those involved in medicinal cannabis activities. They must now comply with the increased fees as stipulated in the Regulations. This includes submitting applications for licences, permits, and variations, as well as paying the adjusted inspection fees. The increased fees are based on a cost recovery framework that takes into account the relevant work effort and average salary rates for the Department of Health, ensuring that the fees reflect the actual costs incurred in administering the medicinal cannabis scheme (Explanatory Statement). In terms of compliance and enforcement, the Regulations themselves do not introduce new offences, penalties, or civil/criminal consequences for breach. However, failure to pay the newly increased fees or comply with the payment requirements could potentially lead to enforcement actions under the Narcotic Drugs Act 1967. The specific consequences for non-compliance would depend on the broader provisions of the Act and any associated administrative or enforcement measures. The Regulations ensure that the fee structure is transparent and aligned with the cost recovery guidelines, thus maintaining the integrity of the regulatory framework governing medicinal cannabis activities in Australia.

Legal classification tags

Area of Law
Drug Control Law
Regulatory Standards
Instrument
Regulation
Concepts
Reporting & Disclosure Obligations
Fees
Fees Adjustment
Catchwords
Fees

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.