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Narcotic Drugs (Licence Charges) Amendment

Current status

This bill became law on Nov 30th, 2022.

Policy area

Health, care & disability

What does this bill do?

Medicinal cannabisCannabis that is legally grown or supplied for medical use, not for recreational use. This page is about the licensing and charging rules for that industry. licence holders can now be charged separately for different regulatory activities during the same charging periodThe time block over which a licence holder can be charged. The bill lets some charges fall due at different points inside that period., instead of facing only one combined licence charge.

Why was it introduced?

Medicinal cannabisCannabis that is legally grown or supplied for medical use, not for recreational use. This page is about the licensing and charging rules for that industry. licensing changed in December 2021, but licence charges were still based on the old permits framework, leaving the new scheme misaligned. The bill updates the charging law so regulations can set flexible, separate charges that better recover the costs of regulating the revised industry.

Broader context

Australia’s medicinal cannabisCannabis that is legally grown or supplied for medical use, not for recreational use. This page is about the licensing and charging rules for that industry. licensing system was overhauled after Professor John McMillan’s 2019 review, and the resulting reforms that began on 24 December 2021 replaced the old three-licence model with a single-licence structure. But the separate licence-charges law still reflected the old permits framework, so this bill was introduced in August 2022 to let regulations set more flexible, activity-based charges and invoicing times for cost recoveryA charging approach where the government sets fees so industry pays for the regulator's work rather than taxpayers covering the full cost., before Parliament passed it in November and it became law on 30 November 2022.

Key criticism

The main criticism was that the bill did nothing to fix the bigger problem of medicinal cannabisCannabis that is legally grown or supplied for medical use, not for recreational use. This page is about the licensing and charging rules for that industry. remaining too expensive and too hard for many patients to access because of bureaucracy and cost. That case was raised mainly by Senator Malcolm Roberts, while the Greens said they would not oppose the bill after receiving assurances it would not increase licence fees.

Who supported it?

Ged Kearney MP introduced this bill. It passed on the voices.

Introduced in House 03 Aug 2022
Passed House 06 Sept 2022
Passed Senate 24 Nov 2022
Became law 30 Nov 2022

Did it become law?

Yes

Became law 30 Nov 2022

Final passage

Passed without a counted vote

2 recorded amendment or procedural votes were found, but no counted vote on the bill itself was recorded.

Passage speed

119 days

From introduction to the latest recorded parliamentary step

Official record

View on APH

Parliament of Australia bill page

Meaning

What does this bill do?

  1. Medicinal cannabisCannabis that is legally grown or supplied for medical use, not for recreational use. This page is about the licensing and charging rules for that industry. licence holders can now be charged separately for different regulatory activities during the same charging periodThe time block over which a licence holder can be charged. The bill lets some charges fall due at different points inside that period., instead of facing only one combined licence charge.

  2. Medicinal cannabisCannabis that is legally grown or supplied for medical use, not for recreational use. This page is about the licensing and charging rules for that industry. licence holders can be billed at different times during a charging periodThe time block over which a licence holder can be charged. The bill lets some charges fall due at different points inside that period. when different compliance or regulatory costs arise.

  3. Regulations can now set licence charges as fixed amounts or use a formula to calculate what each licence holder must pay.

  4. The new charging rules are meant to help the Australian Government recover the real costs of regulating the medicinal cannabisCannabis that is legally grown or supplied for medical use, not for recreational use. This page is about the licensing and charging rules for that industry. industry more accurately.

  5. Existing regulations that set narcotic drugs licence charges stay legally valid despite the rewrite of the charge-setting rule.

Show source excerpts
  1. The effect of item 4 is to enable, through regulations, the Commonwealth to impose multiple separate charges for discrete matters on a licence holder within a particular charging period and clarify that separate charges may be invoiced at multiple times during a particular charging period.
    Narcotic Drugs (Licence Charges) Amendment explanatory memorandum
  2. The effect of item 4 is to enable, through regulations, the Commonwealth to impose multiple separate charges for discrete matters on a licence holder within a particular charging period and clarify that separate charges may be invoiced at multiple times during a particular charging period.
    Narcotic Drugs (Licence Charges) Amendment explanatory memorandum
  3. (1) The amount of a charge is the amount prescribed by, or worked out in accordance with a method prescribed by, the regulations.
    Narcotic Drugs (Licence Charges) Amendment as-passed bill text
  4. The effect of this amendment is to enable greater flexibility in the manner in which charges are prescribed, so costs may be effectively recovered for the matters the charges relate to.
    Narcotic Drugs (Licence Charges) Amendment explanatory memorandum
  5. The repeal and substitution of subsection 8(1) of the Narcotic Drugs (Licence Charges) Act 2016 made by this Schedule does not affect the validity of regulations in force for the purposes of that subsection immediately before the commencement of this item.
    Narcotic Drugs (Licence Charges) Amendment as-passed bill text

Context

Broader context for this bill

Australia’s medicinal cannabisCannabis that is legally grown or supplied for medical use, not for recreational use. This page is about the licensing and charging rules for that industry. licensing system was overhauled after Professor John McMillan’s 2019 review, and the resulting reforms that began on 24 December 2021 replaced the old three-licence model with a single-licence structure. But the separate licence-charges law still reflected the old permits framework, so this bill was introduced in August 2022 to let regulations set more flexible, activity-based charges and invoicing times for cost recoveryA charging approach where the government sets fees so industry pays for the regulator's work rather than taxpayers covering the full cost., before Parliament passed it in November and it became law on 30 November 2022.

  1. 2019

    McMillan review recommends simpler medicinal cannabisCannabis that is legally grown or supplied for medical use, not for recreational use. This page is about the licensing and charging rules for that industry. licensing

    Professor John McMillan’s independent review made 26 recommendations, including moving to a single-licence modelThe newer medicinal cannabis setup that replaced the old three-licence structure. It simplifies the licensing framework the charges are meant to track. and simplifying the permits regimeThe older system that used permits alongside licences. The page says the new law no longer matches that older setup. for medicinal cannabisCannabis that is legally grown or supplied for medical use, not for recreational use. This page is about the licensing and charging rules for that industry..

    Narcotic Drugs (Licence Charges) Amendment explanatory memorandum ↗
  2. 24 Dec 2021

    Single-licence medicinal cannabisCannabis that is legally grown or supplied for medical use, not for recreational use. This page is about the licensing and charging rules for that industry. reforms begin

    Amendments to the narcotic drugs legislation commenced to implement the McMillan review and replace the previous three-licence structure with a simplified scheme.

    Narcotic Drugs (Licence Charges) Amendment explanatory memorandum ↗
  3. 24 Dec 2021

    Old charging rules remain tied to the previous framework

    Although the licensing scheme changed, the licence-charges Act and regulations still prescribed charges based on the earlier medicinal cannabisCannabis that is legally grown or supplied for medical use, not for recreational use. This page is about the licensing and charging rules for that industry. licence and permits model.

    Narcotic Drugs (Licence Charges) Amendment explanatory memorandum ↗
  4. 03 Aug 2022

    Government introduces a bill to realign licence charges

    The bill was introduced to allow multiple separate charges and formula-based calculations so cost recoveryA charging approach where the government sets fees so industry pays for the regulator's work rather than taxpayers covering the full cost. could better match the revised medicinal cannabisCannabis that is legally grown or supplied for medical use, not for recreational use. This page is about the licensing and charging rules for that industry. regulatory scheme.

    Minister's second reading speech ↗
  5. 24 Nov 2022

    Parliament passes the bill

    Both houses passed the bill in the same form, clearing the way for the updated charging rules to support administration of the new licensing structure.

    Parliamentary timeline ↗
  6. 30 Nov 2022

    Royal AssentThe final approval that turns a bill into an Act. The page says the bill became law on receiving Royal Assent. makes the changes law

    Royal AssentThe final approval that turns a bill into an Act. The page says the bill became law on receiving Royal Assent. turned the bill into an Act, preserving existing charge regulations while enabling more flexible future charging arrangements.

    Parliamentary timeline ↗

Legislative route

How did it move through Parliament?

House Senate
Introduced 03 Aug 2022

The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.

Introduced and read a first time

Second reading opened 03 Aug 2022

A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.

Second reading moved

Second reading debate 06 Sept 2022

The bill reached this recorded parliamentary step.

House second reading agreed 06 Sept 2022

The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.

Second reading agreed to

House third reading agreed 06 Sept 2022

The chamber agreed to the bill at third reading, which completed passage through that chamber.

Third reading agreed to

Introduced 06 Sept 2022

The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.

Introduced and read a first time

Second reading opened 06 Sept 2022

A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.

Second reading moved

Scrutiny of Bills review 07 Sept 2022

Considered by scrutiny committee (07/09/2022): Senate Standing Committee for the Scrutiny of Bills; Scrutiny Digest 4 of 2022

Considered by scrutiny committee

APH bill page notes
Second reading debate 24 Nov 2022

The bill reached this recorded parliamentary step.

Senate second reading agreed 24 Nov 2022

The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.

Second reading agreed to

Senate third reading agreed 24 Nov 2022

The chamber agreed to the bill at third reading, which completed passage through that chamber.

Third reading agreed to

Passed both houses 24 Nov 2022

Both houses passed the bill in the same form, completing parliamentary passage.

Finally passed both Houses

Assent 30 Nov 2022

The Governor-General gave Royal AssentThe final approval that turns a bill into an Act. The page says the bill became law on receiving Royal Assent., turning the bill into an Act.

Key criticism

The main case against this bill

The main criticism was that the bill did nothing to fix the bigger problem of medicinal cannabisCannabis that is legally grown or supplied for medical use, not for recreational use. This page is about the licensing and charging rules for that industry. remaining too expensive and too hard for many patients to access because of bureaucracy and cost. That case was raised mainly by Senator Malcolm Roberts, while the Greens said they would not oppose the bill after receiving assurances it would not increase licence fees.

No party represented in the debate opposed the bill’s core charging changes, but concern remained about patient access and affordability.

Does not address patient access and cost

The strongest criticism was not about the licence-charge mechanism itself but about what the bill left untouched: critics argued many Australians still could not get affordable medicinal cannabisCannabis that is legally grown or supplied for medical use, not for recreational use. This page is about the licensing and charging rules for that industry. because bureaucracy and high costs remained in place. Roberts argued easier prescribing and cheaper access, including PBSThe Pharmaceutical Benefits Scheme, which helps subsidise medicines for patients. In this debate it came up as a call for cheaper access to medicinal cannabis. support for whole-plant medicinal cannabisCannabis that is legally grown or supplied for medical use, not for recreational use. This page is about the licensing and charging rules for that industry., mattered more than technical changes to licence charging.

Raised by Senator Malcolm Roberts; reflected more broadly in unsuccessful Senate second-reading amendments about access and affordability Source ↗

Concern about possible fee increases

Some support was conditional on the bill not being used to raise licence fees. The concern was that more flexible charging powers could otherwise end up increasing costs in the medicinal cannabisCannabis that is legally grown or supplied for medical use, not for recreational use. This page is about the licensing and charging rules for that industry. system, even though the government said that would not happen.

Raised by Senator David Shoebridge and the Greens, who said they would not oppose the bill after government assurances Source ↗

Further sources

parlinfo.aph.gov.au ↗ parlinfo.aph.gov.au ↗

Votes

Recorded votes

How the bill itself passed

The bill passed both chambers on the voices. The counted divisions below were about amendments or procedure, not final passage.

Passed

House passed the bill

House agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.

06 Sept 2022

Passed on the voices

In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.

Passed

Senate passed the bill

Senate agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.

24 Nov 2022

Passed on the voices

In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.

Amendments at a glance

Recorded amendment and procedural votes grouped by chamber. Expand a vote to see the party breakdown.

Senate

Defeated

Call for cheaper medicinal cannabis

Aye 13 No 31

Defeated 13 to 31. Support came from Greens, One Nation, and minor parties and independents. Opposition came from Labor, Liberal Party, Nationals, Jacqui Lambie Network, and minor parties and independents.

24 Nov 2022

The Senate rejected a Greens attempt to use the second-reading motion to criticise cost barriers and press for easier access to medicinal cannabisCannabis that is legally grown or supplied for medical use, not for recreational use. This page is about the licensing and charging rules for that industry. while leaving the bill unchanged.

Party Recorded votes Aye / No
Labor 0 / 17
Greens 11 / 0
Unknown 0 / 7
Liberal Party 0 / 4
Nationals 0 / 2
Independent 1 / 0
Jacqui Lambie Network 0 / 1
One Nation 1 / 0
Defeated

Call for wider medical cannabis access

Aye 17 No 30

Defeated 17 to 30. Support came from Greens, One Nation, Jacqui Lambie Network, and minor parties and independents. Opposition came from Labor, Liberal Party, and Nationals. Minor-party and independent votes were split.

24 Nov 2022

The Senate declined to attach a stronger pro-access statement to the second-reading motion, so the government’s bill proceeded without the proposed policy callout.

Party Recorded votes Aye / No
Labor 0 / 17
Greens 12 / 0
Unknown 1 / 6
Liberal Party 0 / 5
Nationals 0 / 2
One Nation 2 / 0
Independent 1 / 0
Jacqui Lambie Network 1 / 0

These are amendment votes, not the final passage vote on the bill itself. The bill passed both chambers on the voices.

Parliamentary debate

Who spoke, and what they said

Start here — lead voices

Sponsor speech Supports

Ged Kearney

Australian Labor Party • MP 03 Aug 2022

Kearney supports the bill, saying it will give the regulations more flexibility to set licence charges that better match the matters being charged and recover the costs of administering the Narcotic Drugs Act.

Read in Hansard ↗
Lead opposing voice Opposes

Malcolm Roberts

Pauline Hanson's One Nation Party • Senator 24 Nov 2022

Roberts opposes the bill as drafted and wants the Senate to amend the motion instead.

Read in Hansard ↗
Lead supporting voice Supports

David Shoebridge

Australian Greens • Senator 24 Nov 2022

Shoebridge says the Greens will not oppose the bill, because the government has assured them it will not lead to higher medicinal cannabisCannabis that is legally grown or supplied for medical use, not for recreational use. This page is about the licensing and charging rules for that industry. licence fees.

Read in Hansard ↗
Lead voice Supports

Sussan Ley

Liberal Party • MP 06 Sept 2022

Ley supports the bill as a continuation of the coalition's reforms to streamline medical cannabisCannabis that is legally grown or supplied for medical use, not for recreational use. This page is about the licensing and charging rules for that industry. licensing and keep licence charges aligned with the simpler regulatory model.

Read in Hansard ↗

All speeches by bloc

Labor

2 speakers · 3 contributions · 2 support

  1. Ged Kearney ★ 2 contributions Kearney supports the bill, saying it will give the regulations more flexibility to set licence charges that better match the matters being charged and recover the costs of administering the Narcotic Drugs Act.

    Hansard records 2 separate contributions by Ged Kearney on this bill. They are grouped here so the speaker is listed once.

    Minister's second reading speech Australian Labor Party • MP • 03 Aug 2022

    Kearney supports the bill, saying it will give the regulations more flexibility to set licence charges that better match the matters being charged and recover the costs of administering the Narcotic Drugs Act. The changes are presented as a technical update to align charges with the simplified medicinal cannabisCannabis that is legally grown or supplied for medical use, not for recreational use. This page is about the licensing and charging rules for that industry. licensing framework.

    “The amendments in the bill are intended to provide sufficient flexibility for the regulations to appropriately prescribe charges, supporting the effective recovery of the costs associated with administering the Narcotic Drugs Act.”
    Read this contribution in Hansard ↗

    Second reading speech Australian Labor Party • MP • 06 Sept 2022

    Kearney supports the bill, saying it clarifies how licence charges can be set and gives the regulations more flexibility to recover the costs of administering the narcotic drugs scheme.

    “I would like to thank the Deputy Leader of the Opposition and the member for Sturt for their very constructive and helpful comments. This bill amends the Narcotic Drugs (Licence Charges) Act 2016 to clarify that the Narcotic Drugs (Licence Charges) Regulation may prescribe matters that will be the subject of multiple separate charges which may be incurred by a licence holder during a particular charging period and to enable a simpler method for working out the amount of charge prescribed. The amendments in the bill are intended to provide sufficient flexibility for the regulations to appropriately prescribe charges supporting the effective recovery of the costs associated with administering the Narcotic Drugs Act 1967. I thank members for their contributions to the debate on the bill.”
    Read this contribution in Hansard ↗
  2. Malarndirri McCarthy McCarthy supports the bill, saying it will clarify licence charges and give regulations more flexibility so the government can recover the costs of administering the Narcotic Drugs Act.
    “Firstly, I thank senators for their contribution to the debate on the Narcotic Drugs (Licence Charges) Amendment Bill 2022. The bill amends the Narcotic Drugs (Licence Charges) Act to clarify that the narcotics drugs licence charges regulation may prescribe matters that will be the subject of multiple separate charges which may be incurred by a licence holder during a particular charging period and to enable a simpler method for working out the amount of charge prescribed. The amendments in the bill are intended to provide sufficient flexibility for the regulations to appropriately prescribe charges supporting the effective recovery of the costs associated with administering the Narcotic Drugs Act. I thank members for their contributions to the debate on this bill.”

    Australian Labor Party • Senator • 24 Nov 2022

    Read the full speech in Hansard ↗

Coalition

4 speakers · 4 support

  1. Sussan Ley ★ Ley supports the bill as a continuation of the coalition's reforms to streamline medical cannabisCannabis that is legally grown or supplied for medical use, not for recreational use. This page is about the licensing and charging rules for that industry. licensing and keep licence charges aligned with the simpler regulatory model.
    “This bill seeks to continue the coalition's work of streamlining the medical cannabis industry by implementing these necessary changes to the fees and charges framework.”

    Liberal Party • MP • 06 Sept 2022

    Read the full speech in Hansard ↗
  2. James Stevens James Stevens supports the bill and says it is sound policy that will keep the medicinal cannabisCannabis that is legally grown or supplied for medical use, not for recreational use. This page is about the licensing and charging rules for that industry. licensing framework simple while ensuring proper oversight and recovery of regulatory costs.
    “I rise in support of the second reading of the Narcotic Drugs (Licence Charges) Amendment Bill 2022 and commend the contribution just given by the Deputy Leader of the Opposition. It was a very helpful explanation of the history of this, which is indeed a coalition measure that was brought forward in the last parliament. We're now dealing with this afresh in this new parliament because of timing issues around elections et cetera. It's obviously sound policy, which we on this side of the House support.”

    Liberal Party • MP • 06 Sept 2022

    Read the full speech in Hansard ↗
  3. Jonathon Duniam Duniam says the coalition will support the bill because it updates licence charges to match the simplified medicinal cannabisCannabis that is legally grown or supplied for medical use, not for recreational use. This page is about the licensing and charging rules for that industry. licensing framework and recover the regulator's costs.
    “I'm pleased to say at the outset that the coalition will be supporting this bill. The Narcotic Drugs (Licence Charges) Amendment Bill amends the Narcotic Drugs (Licence Charges) Act 2016 to support the Commonwealth's effective recovery of the costs associated with regulating Australia's medical cannabis industry, including the costs of administration and monitoring and assessment of compliance, and to provide greater flexibility for regulations to prescribe the charges imposed on licence holders under the Narcotics Drugs Act 1967.”

    Liberal Party • Senator • 24 Nov 2022

    Read the full speech in Hansard ↗
  4. Andrew Bragg Bragg says the coalition will support the bill because it helps align licence fees and charges with the new medicinal cannabisCannabis that is legally grown or supplied for medical use, not for recreational use. This page is about the licensing and charging rules for that industry. licensing framework and should improve access while reducing cost and complexity.
    “The object of this bill is to build on the changes that were commissioned by the former coalition government to ensure that licence fees and charges are better aligned with the new licensing framework. We accepted all the recommendations of the McMillan review on these matters. This is another down payment on that front. The guiding principle here is that we want people to get access to medicinal cannabis. That is the key point. We don't want people to be pushed into the black market. We want people to be able to access it through an above-the-counter type of approach as much as possible. That will be the test for this bill. We will be supporting it and the proof of the pudding will be in the eating.”

    Liberal Party • Senator • 24 Nov 2022

    Read the full speech in Hansard ↗

Greens

1 speaker · 1 support

  1. David Shoebridge ★ Shoebridge says the Greens will not oppose the bill, because the government has assured them it will not lead to higher medicinal cannabisCannabis that is legally grown or supplied for medical use, not for recreational use. This page is about the licensing and charging rules for that industry. licence fees.
    “But I otherwise indicate that we're not opposing the bill, primarily for the reason that the government has given us that assurance that there will be no net increase. I'd like to hear that confirmed on the record by the government in their response—that there will be no net increase in those licensing fees for medicinal cannabis.”

    Australian Greens • Senator • 24 Nov 2022

    Read the full speech in Hansard ↗

One Nation

1 speaker · 1 oppose

  1. Malcolm Roberts ★ Roberts opposes the bill as drafted and wants the Senate to amend the motion instead.
    “At the end of the motion, add ", but the Senate:”

    Pauline Hanson's One Nation Party • Senator • 24 Nov 2022

    Read the full speech in Hansard ↗

Record

Full record

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