Inside the plan to legalize cannabis in Australia and how it could generate billions in government taxes

Thousands of Australians support the legalization of cannabis and support the Greens’ plan that could generate an additional $28 billion in revenue over nine years.

Greens Justice spokesman David Shoebridge will hand over his Legalize Cannabis Report Friday, following nearly 9,000 survey responses, dozens of official submissions, and many phone calls, social media conversations, and “real talks” in response to a bill.

His next step is to present the bill to the Senate, buoyed by the response, which will present a model to legalize the drug with a single national market, enabling home-grown growth and prioritizing co-ops and small business involvement .

The bill would also introduce a 15 percent tax rate, in addition to standard GST, which, based on the current rate of $13 per gram, would generate $28 billion in tax over nine years, according to cost estimates by the Parliamentary Budget Office based on the current rate of $13 per gram.

Respondents told the Greens that a reasonable tax rate that didn’t drive up prices would keep people away from the illicit market. Instead, the Greens say the tax rate associated with a legal market would cut costs in half over the decade.

Senator Shoebridge said the broad consultation – in which almost all respondents supported the legalization of cannabis despite only about a quarter currently being recreational users of the drug – painted a clear picture that Australia should take steps to legalize the drug.

Senator Shoebridge said the myriad of responses had strengthened the bill, culminating in a model that would provide a plan for safe entry and end overpolicing.

“Using the collective wisdom of nearly 10,000 respondents, we know the Greens will introduce the most popular and effective bill possible to legalize cannabis nationwide,” he said.

“We have made improvements in labeling, storage, production, advertising, sanctions and more as a result of this consultation process.

It is not enough just to decriminalize cannabis. The community is demanding a comprehensive plan for legislation… From what we’ve heard in this consultation, I think this model – with the improvements people have been asking for – provides the right plan to create a single legal national cannabis market.”

Senator Shoebridge said there was an “extraordinary level of excitement and commitment to this plan.”

“People are standing by to speak to their local MPs across the country to make sure this becomes law,” he said.

“With political courage and public support, we can make this law.”

Greens Justice spokesman David Shoebridge (pictured) will hand over his Legalize Cannabis Report Friday before presenting the bill to the Senate

The ACT allows adults to possess up to 50g of dried or 150g of fresh cannabis since 2020. It is also legal for people to grow two plants per person and smoke them at home for personal use (stock image)

The report said the comments had made it “clear” that smoking was unlikely to be the primary method of consumption, with edibles, oils and tinctures being very popular in the comments.

“The need to be able to make these at home for personal use was identified as a deficiency in the (original) account,” the report said.

Two-thirds of respondents said a cannabis café would be the ideal place to purchase and consume the drug.

There was overwhelming support to remove major pharmaceutical, alcohol and tobacco companies from the cannabis market, but Senator Shoebridge said the role of people involved in medical marijuana would prove vital to a rollout of alloyed recreational use.

More than half of respondents said that if it became legal for individuals to grow a limited number of plants for their own consumption at home, they would do so.

According to 2019 government data, 36 percent of Australians aged 14 and over had used cannabis in their lifetime (stock image)

It has also been legal for people to grow two plants per person and smoke them at home for personal use.

According to 2019 government data, 36 percent of Australians aged 14 and over had used cannabis in their lifetime.

More than 40 percent support legalizing the drug for personal use, a figure that has doubled since 2013.

While the states have consistently said no to legalizing cannabis, Mr Shoebridge said he had received constitutional guidance that showed the federal government had the power to override the states and legalize marijuana in Australia.

As of 2020, the ACT allows adults to possess up to 50g of dried or 150g of fresh cannabis.

It has also been legal for people to grow two plants per person and smoke them at home for personal use.

Medical cannabis was legalized in Australia in 2016.