Decriminalising Cannabis Could Save Australian Taxpayers $850M a Year, Report Finds

MELBOURNE, Australia, April 17, 2023 (Newswire.com) - With the development of research into medical cannabis, a number of countries are moving towards decriminalisation or legalisation. Levin Health, a company conducting research into medical marijuana Australia-wide, says that despite the changes overseas, Australia has largely stuck to a prohibition model. 

According to the Cannabis in Australia 2022 report¹ by Penington Institute, the country spent over $1.7 billion on cannabis-related law enforcement between 2015-2016. 90% of cannabis-related charges since 2010 were for personal use or possession.

Levin Health explains the rigid approach to this area of the law has financially impacted the Australian community for a long time. A 1995 study reports that cannabis law enforcement was costing more than $300 million a year, roughly three-quarters of the total cost of illegal drug law enforcement². 

The Penington Institute report of 2022 states that in addition to the $1.7 billion spent on law enforcement costs, the country also spends $1.1 billion on imprisonment, $475 million on police, $62 million on courts, $52 million on legal aid and prosecution, and $25 million on community corrections.

John Ryan, CEO of Penington Institute, said: "It is time to pull Australia into the present and capitalise on the many and varied opportunities that a proper, regulated cannabis market affords us. It also makes clear economic sense, allowing for taxation schemes to direct critical funding into prevention and treatment efforts."

Despite laws tackling the consumption of illicit cannabis, Levin Health says the market thrives. Almost 13,000 attempts to smuggle cannabis into Australia were detected between 2019 and 2020, alongside over 60,000 cannabis seizures¹. 

Greens senator, David Shoebridge, estimates that the black market pulls in around $25 billion every year from illegal cannabis Melbourne and Australia-wide. 

Although researchers at Penington Institute say decriminalising cannabis could save Australians $850 million a year, they add that going a step further to legalise it could save as much as $1.2 billion annually.

Levin Health says while recreational cannabis might be illegal across most of Australia, public opinion favours a change in legislation, with 78% of participants⁴ agreeing that possession of products, such as CBD oil, Australia-wide for personal use shouldn't be an offence.

About Levin Health

Levin Health is an Australian sports science company focused on researching, developing and commercialising a range of medicinal cannabis products initially for the treatment of pain, mental health disorders and sport-related ailments, to help people improve their lifestyle.

Sources:

1. Cannabis in Australia 2022
2. Cannabis, the Law and Social Impacts in Australia
3. National Wastewater Drug Monitoring Program
4. Harm Reduction Journal

Source: Levin Health