Liberal MP Craig Kelly has said that Australia's drug policies need to be reconsidered after it was revealed that in 2016 the nation recorded the highest number of drug-induced deaths in decades.

Speaking to Perth's 6PR radio station, the backbench MP from the Sydney seat of Hughes said that there were "elements of the Portuguese model that we should look at very closely here in Australia".

Portugal decriminalised the possession of all drugs for personal use 16 years ago in an ambitious policy that was complemented by the allocation of greater resources to expanding and improving programmes aimed not only at prevention but also treatment, harm reduction and social reintegration.

"So say for example it might be cocaine -- if you possess under what they classify as 10 days supply for an addict, instead of going to jail you are sent to a drug dissuasion commission," Kelly said.