Legalizing Cannabis Could Save Australian Taxpayers Up To $1.2B A Year, Report Finds

With the development of research into medical cannabis, a number of countries are moving towards decriminalization or legalization. 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 report 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 enforcement.

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, stated: "It is time to pull Australia into the present and capitalize 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."

Although researchers at Penington Institute say decriminalizing cannabis could save Australians $850 million a year, they add that going a step further to legalize 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 favors a change in legislation, with 78% of participants agreeing that possession of products, (according to Harm Reduction Journal) such as CBD oil, Australia-wide for personal use shouldn't be an offense.

Photo by Esteban López on Unsplash