{"id":"C2016A00075","name":"Narcotic Drugs (Licence Charges) Act 2016","slug":"narcotic-drugs-licence-charges-act-2016","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"75 of 2016","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":54999,"registerId":"commonwealth-C2016A00075-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Short title","content":"#### 1 Short title\n\n This Act is the Narcotic Drugs (Licence Charges) Act 2016.","sortOrder":0},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n```html\n

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1. Sections 1 and 2 and anything in this Act not elsewhere covered by this table

The day this Act receives the Royal Assent.

23 November 2016

2. Sections 3 to 9

The later of:

(a) immediately after the commencement of Schedule 1 to the Narcotic Drugs Amendment Act 2016; and

(b) the start of the day this Act receives the Royal Assent.

23 November 2016

(paragraph (b) applies)

\n```\n\n> Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.\n\n (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.","sortOrder":1},{"sectionNumber":"3","sectionType":"section","heading":"Definitions","content":"#### 3 Definitions\n\n In this Act:\n\n> charge means charge imposed by this Act.\n\n> licence means a licence granted under the Narcotic Drugs Act 1967.","sortOrder":2},{"sectionNumber":"4","sectionType":"section","heading":"Crown to be bound","content":"#### 4 Crown to be bound\n\n This Act binds the Crown in each of its capacities. However, it does not bind the Crown in right of the Commonwealth.","sortOrder":3},{"sectionNumber":"5","sectionType":"section","heading":"Extension to external Territories","content":"#### 5 Extension to external Territories\n\n This Act extends to every external Territory.","sortOrder":4},{"sectionNumber":"6","sectionType":"section","heading":"Imposition of charges","content":"#### 6 Imposition of charges\n\n Charge on a licence\n (1) Charge is imposed on a licence that is in force at whichever of the following times is applicable:\n (a) any time during a financial year;\n (b) any time during such other period as is prescribed by the regulations.\n (2) Without limiting subsection (1), the regulations may prescribe different periods in relation to the following:\n (a) different classes of licence;\n (b) licences of the same class that authorise different activities.\n Charge on matters that relate to a licence\n (3) Charge is imposed on each matter prescribed by the regulations, being a matter that relates to a licence that is in force.\n (4) Without limiting subsection (3), the regulations may prescribe different matters in relation to the following:\n (a) different classes of licence;\n (b) licences of the same class that authorise different activities.\n (5) Subsection (3) imposes a charge only so far as that charge is neither a duty of customs nor a duty of excise within the meaning of section 55 of the Constitution.","sortOrder":5},{"sectionNumber":"7","sectionType":"section","heading":"By whom charges payable","content":"#### 7 By whom charges payable\n\n Charge is payable by the holder of the licence.","sortOrder":6},{"sectionNumber":"8","sectionType":"section","heading":"Amounts of charges","content":"#### 8 Amounts of charges\n\n (1) The amount of a charge is the amount prescribed by, or worked out in accordance with a method prescribed by, the regulations.\n (2) Without limiting subsection (1), the regulations may prescribe different amounts of, or prescribe different methods of working out amounts of, charge in relation to the following:\n (a) different classes of licence;\n (b) licences of the same class that authorise different activities.\n (3) In this section:\n\n> amount includes a nil amount.","sortOrder":7},{"sectionNumber":"9","sectionType":"section","heading":"Regulations","content":"#### 9 Regulations\n\n The Governor‑General may make regulations prescribing matters:\n (a) required or permitted by this Act to be prescribed; or\n (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.","sortOrder":8}],"analysis":{"issue_detection":{"absurdities":[{"type":"self_contradicting","section":"4","severity":"high","reasoning":"The Narcotic Drugs Act 1967 is Commonwealth legislation. Licences under it are Commonwealth licences. The Commonwealth imposing charges on Commonwealth licences but exempting itself in right of the Commonwealth means that if the Commonwealth itself held a licence (e.g., a Commonwealth agency), no charge would be payable. This undermines the fundamental purpose of the charging Act and creates an inequality not obviously justified by constitutional necessity alone, though s.114 of the Constitution does provide some basis for this approach.","confidence":0.62,"description":"The Crown binding provision explicitly excludes the Crown in right of the Commonwealth, yet this is a Commonwealth Act imposing charges on Commonwealth licences granted under a Commonwealth Act (Narcotic Drugs Act 1967). The Commonwealth government cannot be bound by its own Act in its own right, creating a situation where the primary sovereign entity administering narcotic drug licences is immune from the very charges the Act exists to impose."},{"type":"other","section":"6(1)","severity":"medium","reasoning":"The phrase 'whichever of the following times is applicable' implies mutual exclusivity, but paragraph (b) permits regulations to prescribe 'other periods' without any express carve-out for financial years. If a regulation prescribes a period that overlaps with a financial year, double charging could theoretically arise, or the provision becomes unworkable without further regulatory guidance on which paragraph governs.","confidence":0.55,"description":"Section 6(1) imposes charge on a licence 'at whichever of the following times is applicable', listing two alternatives (a) and (b) as if they are mutually exclusive, but they are not structured as true alternatives — both could simultaneously apply if regulations prescribe an 'other period' that overlaps with or coincides with a financial year. The triggering mechanism is ambiguous as to which provision governs when both could apply."},{"type":"other","section":"8(3)","severity":"low","reasoning":"While nil amounts are a known legislative drafting device to preserve regulatory flexibility, in a charges Act whose sole operative purpose is revenue collection, the express inclusion of nil as a valid 'amount of charge' renders the charging mechanism potentially purposeless. It also raises the question of whether a nil charge is constitutionally valid as a tax or fee for services, as it raises no revenue and serves no compensatory function.","confidence":0.7,"description":"The definition that 'amount includes a nil amount' means a charge can be lawfully imposed at zero dollars. This creates the logical absurdity of imposing a charge that imposes no financial obligation — a charge that is not a charge in any practical sense. A nil charge still triggers all compliance and administrative obligations of the Act without any revenue purpose being served."},{"type":"impossible_compliance","section":"6(3) and 6(5)","severity":"medium","reasoning":"The constitutional boundary between a 'charge' and a 'duty of customs or excise' is not self-defining and has been the subject of significant High Court jurisprudence. Requiring regulations to prescribe matters while simultaneously excluding constitutionally prohibited categories places the regulation-maker in the position of making a legal characterisation that courts may later contradict, retroactively invalidating charges already collected.","confidence":0.72,"description":"Section 6(3) imposes charge on 'each matter prescribed by the regulations' relating to a licence, but section 6(5) then carves out matters that constitute duties of customs or excise under s.55 of the Constitution. This creates an impossible compliance situation for the regulation-maker: the regulations must prescribe 'matters' without knowing in advance whether any given matter will be characterised by a court as a duty of customs or excise — a characterisation that may only be resolved through litigation."},{"type":"circular_definition","section":"3 (definition of 'charge')","severity":"low","reasoning":"A definition that simply restates the term being defined (charge = charge imposed by this Act) adds no interpretive content. A reader seeking to understand what a 'charge' is gains no information from this definition beyond the tautology that it is whatever this Act imposes. While the Act's subject matter may make the meaning practically clear, as a matter of legislative drafting this is a genuine circular definition.","confidence":0.88,"description":"The definition of 'charge' as 'charge imposed by this Act' is entirely circular and provides no substantive meaning. It defines the term by reference to itself."}],"contradictions":[{"severity":"medium","section_a":"6(1)(a)","section_b":"6(1)(b)","confidence":0.6,"description":"Section 6(1) introduces two timing bases for charge imposition — financial year (a) and any other prescribed period (b) — using the phrase 'whichever is applicable', implying only one can apply at a time. However, no mechanism exists to determine which applies when regulations have prescribed an alternative period, since the Act does not provide that a prescribed period displaces or supersedes the financial year basis. Both could simultaneously apply to the same licence, resulting in double imposition."},{"severity":"high","section_a":"4","section_b":"7","confidence":0.78,"description":"Section 4 states the Act does not bind the Crown in right of the Commonwealth, while section 7 states charge is payable by 'the holder of the licence'. If a Commonwealth agency holds a narcotic drugs licence, section 7 nominally makes it liable to pay the charge, but section 4 immunises the Commonwealth from being bound by the Act at all. These provisions are in direct operational conflict as applied to Commonwealth licence holders."},{"severity":"medium","section_a":"6(3)","section_b":"6(5)","confidence":0.65,"description":"Section 6(3) purports to impose charge on 'each matter prescribed by the regulations', suggesting the regulations have complete authority to define chargeable matters. Section 6(5) then withdraws that authority to the extent any such matter constitutes a duty of customs or excise. This creates a contradiction between the apparently plenary regulation-making power in s.6(3) and the constitutional limitation in s.6(5), with no mechanism specified for resolving which matters fall into which category prior to judicial determination."}]},"summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"The Act's scope is consistent with its stated purpose — imposing licence charges on holders of narcotic drug licences. It is a narrow, enabling piece of legislation designed specifically to provide the legal foundation for fee recovery in the medicinal cannabis licensing regime introduced in 2016. No scope creep or unexpected expansion of subject matter is evident."},"complexity_factors":["Most substantive detail (charge amounts, prescribed periods, specific matters) is delegated to regulations rather than set out in the Act itself, requiring readers to look beyond the Act for practical effect","Constitutional reference in s6(5) to 'duty of customs' and 'duty of excise' under s55 of the Constitution introduces a technical carve-out requiring constitutional law knowledge to fully appreciate","Interaction with a companion Act (Narcotic Drugs Amendment Act 2016) for commencement purposes adds a layer of cross-referencing","Crown-binding provision with a Commonwealth exception requires understanding of Australian constitutional concepts around Crown immunity","Short, enabling-style legislation with broad regulation-making powers means the real operative content sits elsewhere"],"plain_english_summary":"This Act authorises the Commonwealth to charge licence-holders who legally deal with narcotic drugs (eg, medicinal or scientific cultivation, manufacture or handling) a fee for holding and using those licences. Exact amounts and activity-specific charges are set by regulation, can vary by licence or be nil, and apply Australia-wide (except the Commonwealth itself).\n\nIts purpose is cost recovery for regulating the legal narcotics sector and underpins the 2016 reforms that opened legal medicinal cannabis activity."},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"This legislation remains tightly focused on its original purpose: establishing a charging framework for narcotic drugs licences. It has not expanded beyond this narrow cost-recovery function. The Act is a companion piece to the Narcotic Drugs Amendment Act 2016, which established the medicinal cannabis licensing scheme, and it serves exactly the fiscal purpose it was designed for — enabling the government to recover costs from licence holders through regulation-made charges."},"complexity_factors":["Very short statute — only 9 sections","Minimal defined terms — only 2 definitions ('charge' and 'licence')","Heavy reliance on delegated legislation — actual charges, calculation methods, and chargeable periods are all left to regulations not contained in the Act","Single constitutional safeguard — section 6(5) explicitly excludes charges that would be 'duties of customs' or 'duties of excise' to avoid constitutional invalidity under section 55 of the Constitution","No cross-references to other Acts except the Narcotic Drugs Act 1967 and the Constitution","Simple structural logic — imposition of charge (s.6), who pays (s.7), how much (s.8), with most detail punted to regulations"],"plain_english_summary":"This law sets up a system for charging fees (called 'charges') to businesses and organisations that hold licences to handle narcotic drugs in Australia.\n\n**What it does:**\n- **Imposes fees on licences** granted under the Narcotic Drugs Act 1967 — this covers licences for growing, producing, manufacturing, and researching medicinal cannabis and other controlled substances\n- **Covers two types of charges:**\n 1. **Annual charges** — fees for simply holding a licence during a financial year (or other period set by regulations)\n 2. **Activity-based charges** — fees for specific matters related to a licence (also set by regulations)\n\n**Who it affects:**\n- **Licence holders** under the Narcotic Drugs Act 1967 — primarily medicinal cannabis cultivators, manufacturers, and researchers\n- The **Commonwealth government itself is exempt** from these charges (the Crown in right of the Commonwealth is not bound)\n- State and Territory governments **are** bound by this law\n\n**Why it matters:**\nThis is essentially a **cost-recovery mechanism**. The government uses these charges to fund the regulatory oversight of Australia's medicinal cannabis and narcotic drugs industry. Rather than taxpayers bearing the full cost of regulating this industry, the businesses being regulated pay fees to cover the government's costs of monitoring compliance, inspecting facilities, and processing licence applications.\n\n**Key features:**\n- The actual dollar amounts aren't in this Act — they're set by **regulations** (delegated legislation), allowing fees to be adjusted without passing new laws\n- Fees can vary based on **licence class** and **activities authorised** — a large commercial cultivator pays differently than a small research facility\n- Charges can be set at **nil** (zero) if the government chooses\n- Applies to **external Territories** (like Christmas Island, Cocos Islands) as well as mainland Australia"},"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"The text as enacted establishes a power to impose charges on licences and related matters and to delegate details to regulation. Nothing in the provided text indicates a change from that original scope; the commencement note confirms the table relates to the Act as originally enacted."},"complexity_factors":["Broad delegation to regulations for core elements (which matters, periods and amounts) creates implementation and compliance complexity (ss6,8,9).","Regulations may vary by licence class and by activities authorised, increasing administrative differentiation and burden (ss6(2),(4),8(2)).","Definition of 'licence' depends on the Narcotic Drugs Act 1967, requiring cross‑legislation reading and possible interpretive issues.","Constitutional qualification excluding customs or excise imposes a legal constraint on charge design (s6(5)).","Sparse procedural detail in the Act itself concentrates substantive discretion in the executive (Governor‑General via regulations), raising regulatory uncertainty for holders."],"plain_english_summary":"This Act authorises the imposition of charges on narcotic‑drug licences and on matters that relate to those licences. Licence holders are required to pay the charges (s7).\n\nThe regulations determine which periods and matters are charged, and how amounts are calculated, with variation allowed by licence class or activity; the Governor‑General makes those regulations (ss6,8,9). Charges are limited so they are not customs or excise under s55 (s6(5)). The measure creates compliance costs for licence holders and gives pricing and scope discretion to regulators."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"}},"importantCases":[],"_links":{"self":"/api/acts/narcotic-drugs-licence-charges-act-2016","history":"/api/acts/narcotic-drugs-licence-charges-act-2016/history","analysis":"/api/acts/narcotic-drugs-licence-charges-act-2016/analysis","conflicts":"/api/acts/narcotic-drugs-licence-charges-act-2016/conflicts","importantCases":"/api/acts/narcotic-drugs-licence-charges-act-2016/important-cases","documents":"/api/acts/narcotic-drugs-licence-charges-act-2016/documents"}}