Australia Edges Closer to Cannabis Legalisation: Greens Push National Scheme, States Signal Support

Australia’s cannabis debate is entering a pivotal phase in 2025. The Greens have formally proposed a national framework for legalising recreational cannabis, while state-level movements — including a push within Victoria’s Liberal Party — show growing bipartisan interest in regulating adult-use cannabis. With public opinion shifting and economic modelling projecting significant revenue, Australia could soon join Canada, Germany, and parts of the United States in regulating recreational cannabis.

A National Legalisation Proposal

The Australian Greens unveiled a comprehensive legalisation scheme earlier this year, proposing to regulate cannabis through a newly created body called the Cannabis Australia National Agency (CANA).

The plan would:

• Legalise possession and use for adults nationwide
• Allow home growing of up to six plants per household
• Establish a regulated retail system for cannabis sales
• Generate federal revenue through excise taxes and licensing

According to modelling from the Parliamentary Budget Office (PBO), the Greens’ plan could raise billions of dollars in new revenue over a decade, while reducing the cost of policing cannabis-related offences. This dual economic and social benefit has been central to the party’s messaging.

Greens Justice spokesperson David Shoebridge argued the scheme would not only cut off profits to organised crime but also bring much-needed regulation to a market already widely used by Australians.

State-Level Shifts: Victoria in the Spotlight

While the federal government remains cautious, states and territories are increasingly testing the waters.

Earlier this month, members of the Victorian Liberal Party announced they will push for the creation of a regulated cannabis market at the party’s state council. This is notable because the Liberals — Australia’s conservative party — have historically opposed cannabis legalisation.

If Victoria were to act independently, it would follow the example of the ACT (Australian Capital Territory), which in 2020 decriminalised small-scale possession and home cultivation. However, the ACT model lacks a retail framework, leaving consumers reliant on the illicit market.

Victoria, with a population of nearly 7 million, could set a powerful precedent by pursuing a full retail model.

Why This Matters Now

Three factors are converging to make 2025 a critical moment for cannabis reform in Australia:

1. Public Support Rising – National polling consistently shows a majority of Australians now support legalising cannabis for adult use. In Victoria, internal party polling has suggested support is strong even among conservative voters.
2. Economic Imperatives – With Australia facing budgetary pressures, the PBO estimates a regulated cannabis market could generate up to AUD $28 billion over a decade through taxes, licensing, and reduced enforcement costs.
3. Global Momentum – Canada, Germany, Malta, Uruguay, and more than 20 U.S. states have already legalised recreational cannabis. Australia risks falling behind in innovation, investment, and research if it maintains prohibition.

Implications for Industry, Consumers, and Investors

If Australia were to adopt a national framework, the impact would be seismic:

• Industry Growth: Domestic cannabis producers — currently constrained by high regulatory costs in the medicinal sector — could pivot to recreational production, creating a multi-billion-dollar industry.
• Consumer Access: Regulated retail stores would provide safe, quality-controlled products, reducing reliance on illicit channels.
• Investment Boom: Both domestic firms and international cannabis companies would eye Australia as a new growth market, especially with its proximity to Asia-Pacific markets.
• Criminal Justice Reform: Police resources could be redirected away from low-level cannabis offences, reducing criminal records for thousands of Australians annually.

Looking Ahead: Can 2025 Be the Breakthrough Year?

The path forward will not be straightforward. The federal government, led by Labor, has so far resisted calls for legalisation, citing health and safety concerns. However, mounting state-level momentum — especially if Victoria acts — could force Canberra to revisit the issue.

For now, the Greens’ proposal ensures cannabis will remain a frontline political issue in 2025. If bipartisan support continues to grow, Australia may be closer than ever to ending its century-long cannabis prohibition.