It acknowledges a proportion of the Australian adult population consumes recreational cannabis regularly already, with average purchases of three grams per week.

Sales would grow each year and about 10 per cent of the market would be made up by overseas visitors.

Re-allocate law enforcement

The costing document says the AFP would re-allocate a proportion of the resources currently directed at cannabis law enforcement to strengthen the law enforcement of other illicit substances.

The new agency would charge a $3500 application fee for production licenses, as well as annual grower fees ranging from $1750 per year for tier one licenses of up to 2000 square feet of plant canopies, to $2300 for tier three licenses and up to 10,000 square feet of crop.

Greens leader Senator Richard Di Natale has released the budget office costings. Alex Ellinghausen

Retail license application fees would cost $1500, with annual fees for retail outlets set at $1000.

Anyone over 18 could buy unlimited amounts and individuals would be permitted to grow up to six plants at home for personal use.


"The Greens' plan to legalise cannabis for adult use will bring in billions of dollars in public revenue that would fully fund drug education and treatment programs and provide a much-needed funding boost for our hospitals and Medicare," Senator Di Natale said.

"We need to get real about cannabis. Almost 7 million Australians have used cannabis despite currently risking a criminal record for doing so."

Customers at a marijuana dispensary in Las Vegas. JOHN LOCHER

Major parties wary

"Our plan to create a legal market for cannabis production and sale will reduce risks, bust the business model of criminal dealers and syndicates and protect young people from unfair criminal prosecutions."

After last week's policy announcement, there appears little likelihood it will be supported by either of the major parties anytime soon.

Health Minister Greg Hunt labelled the plan "dangerous and medically irresponsible".

"It can actually have an impact on both physical and mental health issues, and the notion of spreading the use of unregulated, uncontrolled cannabis, people growing it in their own backyard, is utterly irresponsible," he said.

Opposition Leader Bill Shorten criticised the Greens for a stunt, saying much of the responsibility for drug policy lies at state and territory levels.

"My priority is to look after the families and the sufferers with great pain, and how do we make sure there are not unnecessary regulatory road blocks to the use of therapeutic cannabis," Mr Shorten said.

Australia has moved to grow the medicinal cannabis industry, but New Zealand's Prime Minister Jacinda Ardern has promised a referendum on recreational use and nine US states, Spain, Uruguay and Canada have legalised the drug or are preparing to change their laws.