Legalising Cannabis Could Add $700 Million to Australia’s Budget: What Does It Mean for the Industry?

A new report from Australia’s Parliamentary Budget Office (PBO) estimates that legalising recreational cannabis could contribute approximately $700 million per year to the federal budget. While this figure is lower than previous projections, it provides a clear message: legal cannabis has the potential to become a significant economic asset. 

For those of us working in the medicinal cannabis space, the report also reinforces the value of a licensed, regulated industry—one that supports patients today and could support broader access tomorrow. At Biortica Agrimed, we believe this kind of financial modelling lays the groundwork for more thoughtful, data-driven discussions around reform. 

Federal Budget Boost from Cannabis Legalisation 

The PBO’s forecast outlines a scenario where adult-use cannabis is legalised and regulated at the national level, with a 15% excise tax, along with GST and corporate tax revenue. 

Key projections include: 

  • $28 billion in revenue over 10 years 
  • $7.4 billion from excise tax alone 
  • Annual contributions of $700 million or more to the federal budget 
  • Cost savings in law enforcement and court proceedings 

While the $700 million figure is lower than earlier estimates (which projected up to $1.2 billion annually), the report still presents a compelling case for reform, particularly when combined with the social and healthcare savings associated with decriminalisation and harm reduction. 

What This Means for the Cannabis Industry 

Australia’s cannabis industry—currently medicinal only—is already growing steadily, with over 1 million approved patient prescriptions since legalisation in 2016. Legalising adult-use cannabis would dramatically expand the market and accelerate investment in infrastructure, innovation, and education. 

For companies like Biortica, this would mean: 

  • Increased demand for licensed, high-quality cannabis products 
  • Opportunities to scale cultivation and processing facilities 
  • Expansion into new product categories, such as edibles or low-dose recreational products 
  • Growth in job creation, tax contributions, and regional economic development 

However, these opportunities will only be realised through responsible, well-regulated implementation—something the Australian medicinal cannabis sector already does well. 

Learning from the Medicinal Market 

The PBO report acknowledges that legalisation would rely on building off the current regulatory infrastructure, including TGA oversight, quality standards, and product labelling. 

Biortica Agrimed, along with our partners Green Farmers and Apollo Green, has already developed scalable systems that support: 

  • Consistent product quality across large harvests 
  • Secure and traceable supply chains 
  • Compliance with TGA and ODC guidelines 
  • GACP- and GMP-aligned production processes 

Our experience in the medicinal sector puts us in a strong position to lead responsibly if and when adult-use legalisation becomes a reality.  

A Responsible Path Forward for Australia 

While the PBO report focuses on economics, the broader conversation must also include health, social justice, and patient safety. Legalisation should not be driven solely by revenue—it must be supported by strong regulatory systems, education campaigns, and public health protections. 

A few key principles for reform include: 

  • Licensing only reputable producers 
  • Enforcing clear age restrictions and marketing rules 
  • Investing in cannabis education for healthcare professionals and the public 
  • Supporting harm minimisation and community health programs 

Biortica’s Position on Cannabis Reform 

Biortica supports evidence-based cannabis policy that prioritises: 

  • Patient safety 
  • Product consistency and quality 
  • Regulatory compliance 
  • Community wellbeing 

We welcome discussions about the economic benefits of cannabis legalisation—but only when paired with a commitment to education, safety, and ethical growth. 

Our vertically integrated approach, from cultivation to delivery, already meets the high standards required for medicinal products. That same infrastructure can be adapted to support adult-use access—if done responsibly and with the proper checks in place.