of Australian Parliamentary Budget Office (PBO) recently released a proposal to consider two options for how to approach cannabis legalization. was asked to investigate what legalization would look like through a request for Senator David Shoebridge (described on his Twitter page as “Australia’s Devil’s Lettuce Daddy”) and the Australian Green Party (also known as the Green Party).
The first option is a cannabis national agency that acts as the sole wholesaler between growers and retailers, sets wholesale cannabis prices and issues licenses to potential cannabis business owners, according to the PBO report. (CANA) is established. Ideally, the agency would be fully funded by the fees required to apply for production licenses and retail licenses.
This option legalizes cannabis for those over the age of 18, without specifically limiting the amount an individual can purchase. This approach would create penalties for selling alcohol to minors, similar to how states control the sale of alcohol to minors. Recreational cannabis will be available to “overseas visitors,” and residents will be allowed to grow up to six plants. Finally, recreational sales will “attract Goods and Services Tax (GST) and 25% sales tax on GST-inclusive sales.”
The second option contains all the provisions of the first option except for the final recommendation to change the sales tax to 15% instead of 25%.
The report describes the approach as similar to Canada’s cannabis law. In Canada, residents are restricted to growing no more than four plants at home, cannot smoke in public places, and are restricted to possessing no more than 30 grams.
The PBO estimates the country could collect up to A$28 billion in cannabis tax revenue in the first decade of legalization.
according to new zealand heraldSen. Shoebridge suggested that tax revenue could also be used to raise the rates provided by job seekergovernment employment services, and procuring financial aid provided by job services youth allowanceHe also suggested that cannabis tax revenue could help build more than 88,000 public housing units over the next decade, giving more than 250,000 people homes.
“This costing from the PBO shows that legal cannabis not only reduces harm, but creates an incredible opportunity to generate income that can be invested in health, education and public housing.” shoebridge said“The Greens model creates the right for adults to grow up to six plants in their homes without taxation or payment. We guarantee the commercial viability of growing and selling cannabis through cannabis cafes, etc.”
He also explained that legalization makes sense. Billions of dollars have been taken from the system that can be spent on schools, housing, hospitals and social assistance.” shoebridge said.
He added that legalization has reduced the harm caused by criminal injustice, and overall, polls have revealed that most Australians support and consume cannabis on a regular basis. “There is the fact that almost half of Australian adults have used cannabis at one time. A law criminalizing almost half of the country has not passed public testing.” shoebridge said“Legalizing cannabis allows us to properly regulate the market, provide consistent health and safety advice, and make our products safer. Biker gangs and organized crime, and that doesn’t make much sense. ”
If the PBO plan is adopted, commercial cultivation could start as early as July 2023 in Australia, which would ensure that supply of cannabis far exceeds demand. Applications for production and retail licenses could begin as early as 2023 or 2024, with sales expected to begin by 2024 or 2025.