Narcotic Drugs Amendment (Fees) Regulations 2025

Administered by Department of Health, Disability and Ageing

Legislation au F2025L00417 Regulations Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Narcotic Drugs Act 1967

 

Narcotic Drugs Amendment (Fees) Regulations 2025

 

The Narcotic Drugs Amendment (Fees) Regulations 2025 (the Regulations) increase application fees for licences and permits for activities related to medicinal cannabis, and fees for related inspections, in accordance with the annual indexation of fees to support recovery of the cost of administering the medicinal cannabis regulatory scheme.

 

The Narcotic Drugs Act 1967 (the Act) gives effect to certain of Australia’s obligations under the Single Convention on Narcotic Drugs, 1961, as in force from time to time. Among other things, the Act establishes a licensing and permit scheme for the cultivation and production of cannabis plants, cannabis and cannabis resin, and the manufacture of cannabis drugs, for medicinal and scientific purposes (the Scheme). The Office of Drug Control (the ODC), which is part of the Department of Health and Aged Care, is responsible for administering the Scheme and the Act generally.

 

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 Narcotic Drugs Regulation 2016 (the Principal Regulation) is made under section 27 of the Act. Relevantly, it prescribes fees in respect of:

  • applications for medicinal cannabis licences or medicinal cannabis permits, and related inspections; and
  • applications for variations of a medicinal cannabis licence or medicinal cannabis permit, and related inspections.

 

The purpose of the Regulations is, principally, to amend the Principal Regulation to increase the prescribed fees by applying annual indexation for the 2025-26 financial year. The application of annual indexation is intended to ensure appropriate cost recovery of the costs associated with administering the Scheme.

 

Specifically, the Regulations update and increase the fees that are currently prescribed in the Principal Regulation in relation to:

  • inspections of premises conducted in relation to an application; and
  • applications for:
    • a medicinal cannabis licence; and
    • a medicinal cannabis permit; and
  • applications for a variation of:
    • an existing medicinal cannabis licence; and
    • an existing medicinal cannabis permit.

 

Under the Regulations, inspection fees increase by 2.0%. Licence and permit application fees increase on average by 2.4%. The increase to fees has been determined using an indexation formula based on the relevant work effort to administer the Scheme, and average salary rates for the Department of Health and Aged Care as provided by the Department of Finance.

 

The Regulations complement the Narcotic Drugs (Licence Charges) Amendment (Charge Amounts) Regulations 2025, which update the regulatory licence charges for licences relating to medicinal cannabis, commercial cannabis research and non-commercial cannabis research to reflect annual indexation for 2025-26.

 

Details of the Regulations are set out in Attachment A.

 

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 instrument is compatible with human rights and freedoms recognised or declared under section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. A full statement of compatibility is set out in Attachment B.

 

The Regulations commence on 1 July 2025.

 

Consultation

 

The ODC undertook extensive stakeholder consultation during the review of the ODC fees and charges in 2022-23, which led to the introduction of a new activities-based costing model in August 2023. Through this consultation, stakeholders were advised that the new framework would include annual indexation of fees and charges.

 

In January 2025, the ODC undertook targeted consultation to inform, and invite comment from, the medicinal cannabis industry of the proposed increase in fees and charges due to indexation. This consultation was via a direct mail out to medicinal cannabis licence holders and the industry’s peak bodies. Feedback was received from two licence holders during the consultation process. No concerns were raised regarding the proposed indexation.

 

Authority: Subsection 27(1) of the Narcotic Drugs Act 1967

ATTACHMENT A

 

 

Details of the Narcotic Drugs Amendment (Fees) Regulations 2025

 

Section 1 – Name

 

This section provides that the title of the Regulations is the Narcotic Drugs Amendment (Fees) Regulations 2025.

 

Section 2 – Commencement

 

This section provides for the commencement of the Regulations on 1 July 2025.

 

Section 3 – Authority

 

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

 

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 this instrument has effect according to its terms.


Schedule 1 – Amendments

 

Part 1—Amendments

 

Narcotic Drugs Regulation 2016

 

The Narcotic Drugs Regulation 2016 (the Principal Regulation) is made under subsection 27(1) of the Act. It imposes fees for the regulatory activities carried out by the Office of Drug Control (the ODC), a part of the Department of Health and Aged Care, in administering the medicinal cannabis regulatory scheme under the Act (the Scheme).

 

Specifically, the Principal Regulation imposes fees in respect of applications for:

  • a medicinal cannabis licence;
  • a medicinal cannabis permit; and
  • a variation of a medicinal cannabis licence or medicinal cannabis permit.

 

The Principal Regulation also imposes a fee for inspections of premises that are conducted by the ODC in relation to applications for:

  • any licence granted under the Act (including a medicinal cannabis licence);
  • any permit granted under the Act (including a medicinal cannabis permit); or
  • a variation of such a licence or permit.

 

The Principal Regulation complements the Narcotic Drugs (Licence Charges) Regulation 2016 (the Charges Regulation), which is made under the Narcotic Drugs (Licence Charges) Act 2016 and imposes charges on medicinal cannabis licences.

 

The Regulations amend application fees relating to licences and permits for activities relating to medicinal cannabis, and fees for related inspections, to apply indexation for the 2025-26 financial year to support recovery of the cost of administering the Scheme. The new fees better reflect the minimum efficient costs of performing the regulatory activities to which they relate.

 

Item [1] – Subsection 24(4) (example 1)

This item amends Example 1 in subsection 24(4) so that the total fee mentioned reflects the sum of the updated fees prescribed in the table in clause 1 in Schedule 1 to the Principal Regulation.

 

Item [2] – Subsection 24(4) (example 2)

This item amends Example 2 in subsection 24(4) so that the total fee mentioned reflects the sum of the updated fees prescribed in the table in clause 1 in Schedule 1 to the Principal Regulation.

 

Item [3] – Subsection 54(1)

This item amends the fee that is prescribed in subsection 54(1) of the Principal Regulation for inspections carried out in connection with an application for a licence or permit under the Act, or with an application for a variation to a licence or permit. The new fee is $9,560, which incorporates an increase to the current fee in accordance with annual indexation to support cost recovery of the Scheme.

 

Item [4] – In the appropriate position in Part 6

This item introduces new section 65 to the Principal Regulation. New section 65 provides that:

  • the amendments of subsection 24(4) and clause 1 of Schedule 1 made by the Regulations applies in relation to inspections that are commenced on or after 1 July 2025; and
  • the amendment of subsection 54(1) made by the Regulations, applies to applications made on or after 1 July 2025.

 

Items [5] to [16] – Clause 1 of Schedule 1

This item replaces existing fees that are prescribed in column 2 of the table in clause 1 of Schedule 1 to the Principal Regulation with an increased fee in accordance with annual indexation.

 

Table item 1 prescribes the new fee for an initial application for a medicinal cannabis licence under section 8E of the Act, which is $13,830.

 

Table items 2 to 5 (inclusive) prescribe fees associated with medicinal cannabis permit applications. The new fees for a medicinal cannabis permit are:

  • $12,380 — for an initial application for a medicinal cannabis permit to authorise either or both the cultivation of cannabis plants, or the production of cannabis or cannabis resin, at a particular licensed premises;
  • $8,180 — for an initial application for a medicinal cannabis permit to authorise the manufacture of a cannabis drug at a particular licensed premises;
  • $9,480 — for a subsequent application for a medicinal cannabis permit to authorise either or both of the cultivation of cannabis plants, or the production of cannabis or cannabis resin, at a particular licensed premises;
  • $6,250 — for a subsequent application for a medicinal cannabis permit to authorise the manufacture of a cannabis drug at a particular licensed premises.

 

Table items 6 to 9 (inclusive) prescribe fees for medicinal cannabis licence variation applications. The new fees for a medicinal cannabis licence variation are:

  • $610 — for each licence variation specified as being a licence variation type 1;
  • $1,550 — for each licence variation specified as being a licence variation type 2;
  • $2,270 — for each licence variation specified as being a licence variation type 3;
  • $12,610 — for each licence variation specified as being a licence variation type 4.

 

Table items 10 to 12 (inclusive) prescribe fees for medicinal cannabis permit variation applications. The new fees for a medicinal cannabis permit variation are:

  • $645 — for each permit variation specified as being a permit variation type 1;
  • $1,730 — for each permit variation specified as being a permit variation type 2;
  • $5,370 — for each permit variation specified as being a permit variation type 3.


ATTACHMENT B

 

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 2025

 

The Narcotic Drugs Amendment (Fees) Regulations 2025 (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 Legislative Instrument

 

Section 27 of the Narcotic Drugs Act 1967 (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 Narcotic Drugs Regulation 2016 (the Principal Regulation) is made under section 27 of the Act. Relevantly, it prescribes fees in respect of:

  • applications for medicinal cannabis licences or medicinal cannabis permits, and related inspections; and
  • applications for variations of a medicinal cannabis licence or medicinal cannabis permit, and related inspections.

 

The purpose of the Regulations is, principally, to amend the Narcotic Drugs Regulation 2016 (the Principal Regulation) to increase the prescribed fees by applying annual indexation for the 2025-26 financial year. The application of annual indexation is intended to ensure appropriate cost recovery of the costs associated with administering the Scheme.

 

Specifically, the Regulations update and increase the fees that are currently prescribed in the Principal Regulation in relation to:

  • inspections of premises conducted in relation to an application; and
  • applications for:
    • a medicinal cannabis licence; and
    • a medicinal cannabis permit; and
  • applications for a variation of:
    • an existing medicinal cannabis licence; and
    • an existing medicinal cannabis permit.

 

Under the Regulations, inspection fees increase by 2.0%. Licence and permit application fees increase on average by 2.4%. The increase to fees has been determined using an indexation formula based on the relevant work effort to administer the Scheme, and average salary rates for the Department of Health and Aged Care as provided by the Department of Finance.

 

The Regulations complement the Narcotic Drugs (Licence Charges) Amendment Regulations 2025, which update the regulatory licence charges for licences relating to medicinal cannabis, commercial cannabis research and non-commercial cannabis research to reflect annual indexation for 2025-26. 

 

Human rights implications

 

As the Regulations do not introduce any changes to the Principal 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.

 

Ged Kearney, Assistant Minister for Health and Aged Care

 

Overview

The Narcotic Drugs Amendment (Fees) Regulations 2025 were enacted to address the need for cost recovery in administering the medicinal cannabis regulatory scheme. This scheme is established under the Narcotic Drugs Act 1967, which implements Australia’s obligations under the Single Convention on Narcotic Drugs, 1961. The Act mandates a licensing and permit system for the cultivation, production, and manufacture of cannabis for medicinal and scientific purposes. The Office of Drug Control, part of the Department of Health and Aged Care, administers this scheme. Section 27 of the Act allows the Governor-General to make regulations, including those prescribing fees for the scheme. The Regulations increase fees for applications and inspections related to medicinal cannabis licences and permits, applying annual indexation to reflect the costs of administration. The primary objective is to ensure that the fees appropriately cover the administrative expenses associated with the Scheme. This measure complements other regulatory adjustments for licence charges, ensuring that the regulatory framework remains financially sustainable. The Regulations will commence on 1 July 2025, following extensive stakeholder consultation, which supported the need for such indexation.

Scope and Application

The Narcotic Drugs Act 1967 applies to persons and entities involved in the cultivation, production, manufacture, and use of cannabis for medicinal and scientific purposes in Australia. The Act establishes a licensing and permit scheme to regulate these activities, administered by the Office of Drug Control (ODC), part of the Department of Health and Aged Care. The Act covers the entire Commonwealth of Australia and gives effect to Australia's obligations under the Single Convention on Narcotic Drugs, 1961. The Narcotic Drugs Regulation 2016, made under section 27 of the Act, prescribes fees for applications for medicinal cannabis licences and permits, and related inspections. The Narcotic Drugs Amendment (Fees) Regulations 2025 further amend the Principal Regulation to increase these fees by applying annual indexation for the 2025-26 financial year, ensuring cost recovery of the administrative costs associated with the medicinal cannabis regulatory scheme. The increased fees include a 2.0% rise in inspection fees and an average 2.4% increase in licence and permit application fees. These Regulations commence on 1 July 2025 and are compatible with human rights as they do not alter the substantive regulatory requirements but focus solely on fee adjustments.

Key Provisions

The Narcotic Drugs Amendment (Fees) Regulations 2025 (Regulations) primarily focus on updating and increasing the fees associated with applications for medicinal cannabis licences, permits, and their variations, as well as related inspections, to reflect annual indexation for the 2025-26 financial year. Under Section 27 of the Narcotic Drugs Act 1967 (Act), the Governor-General has the power to make regulations prescribing fees necessary for administering the Act. The Regulations amend the Narcotic Drugs Regulation 2016 (Principal Regulation), which sets out the fees for various activities under the Act, including applications for licences and permits, and inspections. The increased fees are intended to ensure appropriate cost recovery for administering the medicinal cannabis regulatory scheme. The Regulations impose obligations on parties applying for or seeking variations to medicinal cannabis licences or permits, as well as those requiring inspections to be conducted by the Office of Drug Control (ODC), a division of the Department of Health and Aged Care. These parties must now pay the updated fees set out in the Regulations. Specifically, fees for inspections increase by 2.0%, while licence and permit application fees increase on average by 2.4%. The updated fees are calculated using an indexation formula based on the relevant work effort and average salary rates for the Department of Health and Aged Care. There are no explicit offences, penalties, or civil/criminal consequences outlined in the Regulations for failing to comply with the updated fee requirements. However, the Regulations are a legislative instrument for the purposes of the Legislation Act 2003, and any failure to comply with the Act or the Regulations could potentially result in legal consequences under the broader legislative framework governing medicinal cannabis activities in Australia. The Regulations also complement the Narcotic Drugs (Licence Charges) Amendment (Charge Amounts) Regulations 2025, which update the regulatory licence charges for medicinal cannabis, commercial cannabis research, and non-commercial cannabis research.

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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.