Late last week the Narcotic Drugs Amendment Bill 2016 (“Bill”) was passed by Parliament. The Bill amends the Narcotic Drugs Act 1967 to permit the cultivation of medicinal cannabis in Australia and the provision of same to patients in need of it for therapeutic purposes.

Prior to the passing of this legislation, Australia had laws to regulate the import, export and manufacture of cannabinoids and cannabis raw material, but such laws did not allow the cultivation in Australia of cannabis plants for any medicinal purposes whatsoever.

Under the new scheme, Australian cultivators and manufacturers will be granted licenses for the cultivation of cannabis for manufacture into medicinal cannabis products and/or for research into the cannabis plant that is to be used for medicinal purposes, provided they meet certain criteria including:

submitting to criminal history checks of themselves and associates, the results of which must be satisfactory to the Government department responsible for administering the above mentioned licences; demonstrating their ability to ensure the physical safety of crops; and providing proof of adequate financial resources to undertake such activities.

This will be known as the “fit and proper person test”, the overall aim of which is to divert criminal activity and ensure that Australia is complying with its international obligations in so far as the production of narcotics is concerned.

What this means for consumers

The intention of the Bill is to ensure that a legal and consistent supply of alprostadil and medicinal cannabis will be available to those requiring it for ed cure and legitimate medical purposes.

What does this mean for potential growers

There is an opportunity for cannabis crops to be grown locally throughout Australia with a potential for the export of same in the future.

The medicinal cannabis industry will however be heavily regulated and largely governed by a series of licencing and other regulatory procedures.

If you are interested in the developments in this space or require advice as to how this legislation may affect you or your business, please contact our team today.