Narcotic Drugs (Licence Charges) Amendment (Cannabis) Regulations 2018

Administered by Department of Health, Disability and Ageing

Legislation au F2018L00318 Regulations Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Narcotic Drugs (Licence Charges) Act 2016

 

Narcotic Drugs (Licence Charges) Amendment (Cannabis) Regulations 2018

 

The Narcotic Drugs (Licence Charges) Act 2016 (the Act) enables the Commonwealth to impose charges on licences granted under the Narcotic Drugs Act 1967 (the ND Act) and that are in force within a specified period.

 

Section 9 of the Act provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing matters required or permitted to be prescribed by the Act or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

 

The ND Act regulates the cultivation of cannabis plants for the production of cannabis and cannabis resin for medicinal and scientific purposes and the manufacture of drugs, such as morphine, of which Australia is the world’s leading supplier for raw materials, as well as the manufacture of medicinal cannabis products. 

 

The ND Act implements the medicinal cannabis framework in Australia.  The framework authorises the lawful cultivation of cannabis plants and production of cannabis and cannabis resins in Australian in order to provide Australian patients with access to medicinal cannabis for therapeutic purposes.  A person must be granted a licence under the ND Act in order to lawfully cultivate cannabis plants and produce cannabis or cannabis resin for medicinal or research purposes. 

 

There are two types of cannabis licence under the ND Act.  The first type authorises the cultivation of cannabis for the production of cannabis or cannabis resin for subsequent manufacture into medicinal cannabis products.  The second authorises cultivation and production for research purposes.  The imposition of licence charges forms part of the cost recovery arrangement in relation to the administration of the medicinal cannabis framework.

 

The purpose of the Narcotic Drugs (Licence Charges) Amendment (Cannabis) Regulations 2018 (the Regulations) is to update the licence charges imposed on a medicinal cannabis licence and a cannabis research licence from the commencement date of the Regulations.  The licence charge for both types of licences increases from $27,360 to $27,380.  This change reflects the original level of licence charges under the 2016 agreed cost recovery arrangement.

 

No consultation was deemed necessary as the increase in the charge is minimal and the amount of licence charge reflects the original level of licence charge under the cost recovery arrangement.  The increased charge applies from the commencement date of the Regulations and applies to all cannabis licences granted from that date.  Applicants for a licence that have not yet been granted the licence prior to the commencement date of the Regulations will be advised of the changes to the level of licence charges as soon as the amendments are in place.

 

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 the day after it is registered on the Federal Register of Legislation.

 

 

Authority:  Section 9 of the

Narcotic Drugs (Licence Charges) Act 2016

 


ATTACHMENT

 

Details of the Narcotic Drugs (Licence Charges) Amendment (Cannabis) Regulations 2018

 

Section 1 – Name

This section provides for the Regulations to be referred to as the Narcotic Drugs (Licence Charges) Amendment (Cannabis) Regulations 2018.

 

Section 2 – Commencement

This section provides for the Regulations to commence on the day after it is registered on the Federal Register of Legislation.

 

Section 3 – Authority

This section provides that the Regulations are made under the Narcotic Drugs (Licence Charges) Act 2016.

 

Section 4 – Schedules

Section 4 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

 

Narcotic Drugs (Licence Charges) Regulation 2016

 

These amendments correct the amount of licence charge for a medicinal cannabis licence and a cannabis research licence.

 

Item 1- Paragraph 6(a), 6(b), and 6(c)

 

Item 1 corrects the amount of licence charge for a medicinal cannabis licence (paragraph 6(a)), a commercial cannabis research licence (paragraph 6(b)) and a non-commercial cannabis research licence by omitting “$27, 360” and substituting “$27,380” in each of those paragraphs.

 

Section 6 of the Narcotic Drugs (Licence Charges) Regulation 2016 specifies the amount of charge payable by a cannabis licence holder for a particular period while the licence is in force.  There are two types of cannabis licences under the Narcotic Drugs Act 1967 (the ND Act), one is a medicinal cannabis licence and the other is a cannabis research licence.  Section 6 further classifies cannabis research licences into a commercial cannabis research licence and a non-commercial research licence which are defined under section 54A of the Narcotic Drugs Regulation 2016.

 

Item 2 – At the end of the instrument

 

Item 2 adds section 7.  Section 7 provides that the amendment to section 6 (Item 1 refers) applies in relation to licences granted under the Narcotic Drugs Act 1967 on or after the commencement of this section. 

 


Statement of Compatibility with Human Rights

 

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

 

Narcotic Drugs (Licence Charges) Amendment (Cannabis) Regulations 2018

 

The Narcotic Drugs (Licence Charges) Amendment (Cannabis) Regulations 2018 (the Regulations) is 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

These Regulations are made under section 9 of the Narcotic Drugs (Licence Charges) Act 2016.  The purpose of the Regulations is to correct the level of licence charges imposed on a medicinal cannabis licence and a cannabis research licence to make them consistent with the agreed cost recovery arrangement. 

 

The imposition of licence charges, in addition to the payment of fees, forms part of the cost recovery arrangement in relation to the administration of the medicinal cannabis framework in Australia. 

 

Human rights implications

The Regulations only relate to a minor correction of the level of licence charges imposed in relation a medicinal cannabis licence or a cannabis research licence granted under the Narcotic Drugs Act 1967 and do not engage any of the applicable rights or freedoms.

 

Conclusion

This legislative instrument is compatible with human rights as it does not raise any human rights issues.

 

Greg Hunt, Minister for Health and Minister for Sport

 

Overview

The Narcotic Drugs (Licence Charges) Act 2016 was enacted to enable the Commonwealth to impose charges on licences granted under the Narcotic Drugs Act 1967 and that are in force within a specified period. This Act facilitates the regulation of the cultivation of cannabis plants for medicinal and scientific purposes, including the production of medicinal cannabis products and cannabis resin, and the manufacture of drugs such as morphine. The Act was introduced to implement the medicinal cannabis framework in Australia, thereby authorising the lawful cultivation and production of cannabis for therapeutic purposes and research. Licence holders must obtain a licence under the Narcotic Drugs Act 1967 to engage in these activities. The Narcotic Drugs (Licence Charges) Amendment (Cannabis) Regulations 2018 were introduced to update the licence charges imposed on medicinal cannabis licences and cannabis research licences, reflecting the original level of licence charges under the cost recovery arrangement. The Regulations, made under section 9 of the Narcotic Drugs (Licence Charges) Act 2016, increase the licence charge from $27,360 to $27,380. This minor adjustment corrects the amount of the licence charge and applies to all licences granted from the commencement date of the Regulations. The Regulations were deemed not to require consultation as the increase is minimal, and they are compatible with human rights as they do not engage any of the applicable rights or freedoms.

Scope and Application

The Narcotic Drugs (Licence Charges) Act 2016 applies to any person or entity requiring a licence under the Narcotic Drugs Act 1967 for the cultivation of cannabis plants or the production of cannabis or cannabis resin for medicinal or research purposes. The Act covers both medicinal cannabis licences and cannabis research licences, which are further classified into commercial and non-commercial categories. This legislation operates on a national level, as it is a Commonwealth Act, thereby extending its reach across all states and territories of Australia. The Act allows for the imposition of licence charges, which are a part of the cost recovery arrangement for the administration of the medicinal cannabis framework in Australia. However, the Act does not specify any exclusions, exemptions, or thresholds, and its application can be extended or restricted through subordinate instruments such as the Narcotic Drugs (Licence Charges) Amendment (Cannabis) Regulations 2018, which update the licence charges imposed on these cannabis licences. The Narcotic Drugs (Licence Charges) Amendment (Cannabis) Regulations 2018 are made under section 9 of the Narcotic Drugs (Licence Charges) Act 2016 and are designed to correct the level of licence charges imposed on medicinal cannabis and cannabis research licences to align with the original cost recovery arrangement. The Regulations specify that the licence charge for both medicinal cannabis and cannabis research licences will increase from $27,360 to $27,380. These amendments apply to all licences granted under the Narcotic Drugs Act 1967 from the date of commencement of the Regulations. The Regulations also include provisions for applicants who have not yet been granted a licence as of the commencement date to be informed of the changes to the licence charges. The Regulations, being legislative instruments, are subject to the Legislation Act 2003 and will commence on the day after they are registered on the Federal Register of Legislation.

Key Provisions

The Narcotic Drugs (Licence Charges) Amendment (Cannabis) Regulations 2018 (the Regulations) amend the Narcotic Drugs (Licence Charges) Regulation 2016, primarily by adjusting the charges associated with medicinal cannabis and cannabis research licences. These amendments correct the licence charges to align with the original level of the cost recovery arrangement (Regulations, Schedule 1, Item 1). Specifically, the licence charge for both medicinal cannabis licences and cannabis research licences (including commercial and non-commercial research licences) is increased from $27,360 to $27,380. These changes apply to all licences granted from the commencement date of the Regulations, which is the day after it is registered on the Federal Register of Legislation (Regulations, Section 2). The Regulations impose clear obligations on entities or individuals holding medicinal cannabis and cannabis research licences. They must now pay the amended licence charge of $27,380 for the specified period while their licence is in force (Regulations, Schedule 1, Item 1). The obligation to pay the correct licence charge is necessary to ensure compliance with the cost recovery arrangement for the administration of the medicinal cannabis framework. Failure to comply with the new licence charge requirements may lead to penalties or consequences under the Narcotic Drugs (Licence Charges) Act 2016 and the Narcotic Drugs Act 1967. The Act does not specify any particular offences or penalties for non-compliance with the licence charge requirements; however, failure to adhere to licensing requirements under the Narcotic Drugs Act 1967 can result in significant civil or criminal penalties. For instance, contravening the conditions of a licence may lead to fines and imprisonment under the Narcotic Drugs Act 1967. The specific penalties for breaches under the Narcotic Drugs Act 1967 depend on the nature and severity of the offence, with potential maximum penalties including substantial fines and lengthy imprisonment terms. Compliance with the Regulations is essential to avoid any legal repercussions associated with the administration of the medicinal cannabis framework in Australia.

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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.