Narcotic Drugs (Licence Charges) Amendment (Charge Amounts) Regulations 2026

Administered by Department of Health, Disability and Ageing

Legislation au F2026L00749 Regulations In force Legislative Instrument

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EXPLANATORY STATEMENT

 

Narcotic Drugs (Licence Charges) Act 2016

 

Narcotic Drugs (Licence Charges) Amendment (Charge Amounts) Regulations 2026

 

The Narcotic Drugs (Licence Charges) Amendment (Charge Amounts) Regulations 2026 (the Amendment Regulations) increase the charges prescribed by the Narcotic Drugs (Licence Charges) Regulation 2016 (the Charges Regulation), in accordance with annual indexation, to support recovery of the costs of administering the medicinal cannabis regulatory scheme under the Narcotic Drugs Act 1967 (the ND Act).

 

The Narcotic Drugs (Licence Charges) Act 2016 (the Charges Act) imposes charges on medicinal cannabis licences that are granted under the ND Act, and which are in force at a specified time. Charges are payable by the holder of the licence.

 

The ND 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 ND 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, Disability and Ageing, is responsible for administering the Scheme and the ND Act generally.

 

Section 9 of the Charges Act provides that the Governor-General may make regulations prescribing matters that are 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. Section 8 provides that the amount of a charge is the amount prescribed by, or worked out in accordance with a method prescribed by, the regulations.

 

The Amendment Regulations amend the Charges Regulation to increase the prescribed charges by applying annual indexation for the 2026-27 financial year.

 

Under the Amendment Regulations, the annual licence charge increases by 3.1% and inspection charges by an average of 3.3%. The increase to charges has been determined using an indexation formula based on the relevant work effort to administer the medicinal cannabis regulatory scheme and average salary rates for the Department of Health, Disability and Ageing, as provided by the Department of Finance. 

 

Specifically, the Amendment Regulations increase the charges that are currently prescribed in the Charges Regulation in relation to:

  • licence charges for:
    • a commercial medicinal cannabis licence; and
    • a non-commercial medicinal cannabis licence;
  • routine compliance inspections; and
  • verification inspections.

 

The Amendment Regulations complement the Narcotic Drugs Amendment (Fees) Regulations 2026, which update the fees payable in respect of applications for medicinal cannabis licences or medicinal cannabis permits, and related inspections, as well as applications for variations of a medicinal cannabis licence or medicinal cannabis permit, and related inspections.

 

Details of the Amendment Regulations are set out in Attachment A.

 

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

 

The Amendment 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 Amendment Regulations commence on 1 July 2026.

 

Consultation

 

In February 2026, the ODC undertook targeted consultation to inform, and invite comment from, the medicinal cannabis industry of the proposed 2026-27 indexation-related increase in fees and charges. The consultation was via a direct mail out to medicinal cannabis licence holders and industry peak bodies. A small number of written responses were received from these stakeholders. Feedback generally acknowledged that the proposed increases reflect routine annual indexation, and no stakeholders objected to the application of indexation in principle.

 

 

 

 

Authority: Section 9 of the Narcotic Drugs (Licence Charges) Act 2016

ATTACHMENT A

 

 

Details of the Narcotic Drugs (Licence Charges) Amendment (Charge Amounts) Regulations 2026

 

Section 1 – Name

 

This section provides that the title of the Regulations is the Narcotic Drugs (Licence Charges) Amendment (Charge Amounts) Regulations 2026.

 

Section 2 – Commencement

 

This section provides for the commencement of the Regulations on 1 July 2026.

 

Section 3 – Authority

 

This section provides that the Regulations are made under the Charges 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

 

Narcotic Drugs (Licence Charges) Regulation 2016

 

The Charges Regulation is made under section 9 of the Charges Act. It prescribes the amounts of charge imposed on a medicinal cannabis licence in a ‘licence year’, as that term is defined in the Charges Regulation.

 

The Charges Regulation complements the Narcotic Drugs Regulation 2016 (the Principal Regulation), which prescribes fees in respect of the ODC’s administration of the medicinal cannabis regulatory scheme under the ND Act.

 

The Amendment Regulations amend the Charges Regulation to increase the charges that are currently prescribed in relation to licence charges for commercial and non-commercial medicinal cannabis licences, and in relation to routine compliance inspections and verification inspections, in accordance with annual indexation. Under the Amendment Regulations, the annual licence charge increases by 3.1% for the financial year 2026-27.

 

Specifically, the Amendment Regulations increase the charges that are currently prescribed in the Charges Regulation in relation to:

  • licence charges for:
    • a commercial medicinal cannabis licence; and
    • a non-commercial medicinal cannabis permit;
  • routine compliance inspections; and
  • verification inspections.

 

Item [1] – Subsections 6(2) and (3)

This item amends subsections 6(2) and (3) of the Charges Regulation to increase the charge payable for a commercial medicinal cannabis licence from $28,310 to $29,190.

 

Item [2] – Subsection 6A(2)

This item amends subsection 6A(2) of the Charges Regulation to increase the charge payable for an ‘inspection type 1’ from $12,950 to $13,360.

 

Item [3] – Subsection 6A(3)

This item amends subsection 6A(3) of the Charges Regulation to increase the charge payable for an ‘inspection type 2’ from $4,920 to $5,090.

 

Item [4] – In the appropriate position in Part 3

This item introduces new section 14 to the Charges Regulation, which provides for the application of the amendments in these Amendment Regulations. New section 14 provides that:

  • the amendments to section 6, made by the Amendment Regulations, apply to licence years that start on or after 1 July 2026; and
  • the amendments to section 6A by the Amendment Regulations apply to inspections commenced on or after 1 July 2026.

 


ATTACHMENT B

 

 

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 (Charge Amounts) Regulations 2026

 

The Narcotic Drugs (Licence Charges) Amendment (Charge Amounts) Regulations 2026 (the Amendment 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 9 of the Narcotic Drugs (Licence Charges) Act 2016 (the Charges Act) provides that the Governor-General may make regulations prescribing matters that are 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. Section 8 provides that the amount of a charge is the amount prescribed by, or worked out in accordance with a method prescribed by, the regulations.

 

The Amendment Regulations amend the Narcotic Drugs (Licence Charges) Regulation 2016 (the Charges Regulation) to increase the prescribed charges by applying annual indexation for the 2026-27 financial year.

 

Under the Amendment Regulations, the annual licence charge increases by 3.1% and inspection charges by 3.3%. The increase to charges has been determined using an indexation formula based on the relevant work effort to administer the medicinal cannabis regulatory scheme and average salary rates for the Department of Health, Disability and Ageing, as provided by the Department of Finance.

 

Specifically, the Amendment Regulations increase the charges that are currently prescribed in the Charges Regulation in relation to:

  • licence charges for:
    • a commercial medicinal cannabis licence; and
    • a non-commercial medicinal cannabis licence;
  • routine compliance inspections; and
  • verification inspections.

 

The Regulations complement the Narcotic Drugs Amendment (Fees) Regulations 2026, which update the fees payable in respect of applications for medicinal cannabis licences or medicinal cannabis permits, and related inspections, as well as applications for variations of a medicinal cannabis licence or medicinal cannabis permit, and related inspections.

 

Human rights implications

 

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

 

Conclusion

 

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

 

Rebecca White, Assistant Minister for Health and Aged Care

 

Overview

The Narcotic Drugs (Licence Charges) Amendment (Charge Amounts) Regulations 2026 were introduced by the Governor-General under the authority of the Narcotic Drugs (Licence Charges) Act 2016. The primary objective of these regulations is to increase the licence and inspection charges for the medicinal cannabis regulatory scheme by applying annual indexation for the 2026-27 financial year. This adjustment aims to recover the costs associated with administering the scheme, which is overseen by the Office of Drug Control within the Department of Health, Disability and Ageing. The increase in charges is based on an indexation formula that takes into account the work effort required to administer the scheme and the average salary rates for the Department of Health, Disability and Ageing as provided by the Department of Finance. These amendments are part of a broader effort to ensure that the regulatory costs are reflective of the current economic environment and administrative demands. The Narcotic Drugs (Licence Charges) Amendment (Charge Amounts) Regulations 2026 complement the Narcotic Drugs Amendment (Fees) Regulations 2026, which update the fees for various applications and inspections related to medicinal cannabis licences and permits. Both sets of regulations are designed to ensure that the fees and charges remain aligned with the actual costs of administering the regulatory scheme, thereby supporting its efficient and effective operation. The regulatory changes were subject to consultation with the medicinal cannabis industry in early 2026, and feedback generally supported the principle of applying indexation to the charges. The regulations are compatible with human rights as they do not introduce any changes that would engage applicable rights or freedoms.

Scope and Application

The Narcotic Drugs (Licence Charges) Amendment (Charge Amounts) Regulations 2026 applies to the holders of commercial and non-commercial medicinal cannabis licences in Australia, as granted under the Narcotic Drugs Act 1967. The Act imposes charges on these licences to support the costs of administering the medicinal cannabis regulatory scheme, which is overseen by the Office of Drug Control within the Department of Health, Disability and Ageing. The Amendment Regulations increase the prescribed charges in accordance with annual indexation for the 2026-27 financial year, specifically raising annual licence charges by 3.1% and inspection charges by an average of 3.3%. These amendments are applicable to licence years starting on or after 1 July 2026, and inspections commenced on or after this date. The Amendment Regulations do not specify any exclusions or exemptions and are made under the authority provided by section 9 of the Narcotic Drugs (Licence Charges) Act 2016. They complement the Narcotic Drugs Amendment (Fees) Regulations 2026, which cover fees for licence applications and variations. The Regulations are compatible with human rights as outlined in the Statement of Compatibility with Human Rights, which confirms that they do not engage any of the applicable rights or freedoms under the international instruments listed in the Human Rights (Parliamentary Scrutiny) Act 2011.

Key Provisions

The Narcotic Drugs (Licence Charges) Amendment (Charge Amounts) Regulations 2026 (the Amendment Regulations) modify the Narcotic Drugs (Licence Charges) Regulation 2016 to adjust the charges for medicinal cannabis licences and inspections by applying an annual indexation for the 2026-27 financial year. The key provisions of the Amendment Regulations are detailed in Section 4, which outlines the amendments made to the Charges Regulation. These amendments include an increase of 3.1% in the annual licence charge and an average increase of 3.3% in inspection charges. The specific sections amended are 6(2), 6(3), 6A(2), and 6A(3) of the Charges Regulation, with new section 14 also introduced to specify the application of these amendments. The Amendment Regulations impose obligations on the holders of medicinal cannabis licences and inspection providers to pay the increased charges as prescribed. These charges are intended to cover the costs associated with administering the medicinal cannabis regulatory scheme, which is overseen by the Office of Drug Control (ODC) within the Department of Health, Disability and Ageing. The ODC is responsible for ensuring that the increased charges are collected in accordance with the regulatory framework established by the Narcotic Drugs (Licence Charges) Act 2016 (Charges Act) and the Narcotic Drugs Act 1967 (ND Act). Failure to comply with the requirements set out in the Amendment Regulations may result in enforcement actions. While the Amendment Regulations do not explicitly state penalties for non-compliance, the ND Act and the Charges Act provide a framework for potential penalties and consequences. Under the ND Act, non-compliance with regulatory requirements can lead to civil penalties, including fines. The Charges Act may also impose administrative penalties for failure to pay the prescribed charges. Although the Amendment Regulations themselves do not specify maximum penalties, the associated Acts provide a basis for determining the appropriate sanctions for breaches of the regulatory requirements. The Amendment Regulations are designed to ensure that the charges for administering the medicinal cannabis regulatory scheme remain aligned with the operational costs, thereby supporting the efficient and effective management of the scheme. The indexation methodology used to determine the increased charges is based on relevant work efforts and average salary rates for the Department of Health, Disability and Ageing, as provided by the Department of Finance. This approach ensures that the regulatory fees are updated in line with the economic environment and the resources required to maintain the regulatory framework.

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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.