{"id":"F2016L01893","name":"Narcotic Drugs (Licence Charges) Regulation 2016","slug":"narcotic-drugs-licence-charges-regulation-2016","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":95559,"registerId":"commonwealth-F2016L01893-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Preliminary","content":"## Part 1—Preliminary","sortOrder":0},{"sectionNumber":"1","sectionType":"section","heading":"Name","content":"#### 1 Name\n\n  This is the Narcotic Drugs (Licence Charges) Regulation 2016.","sortOrder":1},{"sectionNumber":"3","sectionType":"section","heading":"Authority","content":"#### 3 Authority\n\n  This instrument is made under the Narcotic Drugs (Licence Charges) Act 2016.","sortOrder":2},{"sectionNumber":"4","sectionType":"section","heading":"Definitions","content":"#### 4 Definitions\n\n> Note: A number of expressions used in this instrument are defined in the Act, including the following:\n\n    (a) charge;\n    (b) licence.\n  (1) In this instrument:\n\n> Act means the Narcotic Drugs (Licence Charges) Act 2016.\n\n> agency of the Commonwealth, a State or a Territory has the same meaning as in the Narcotic Drugs Act 1967.\n\n> authorised inspector has the same meaning as in the Narcotic Drugs Act 1967.\n\n> commercial medicinal cannabis licence has the same meaning as in the Narcotic Drugs Regulation 2016.\n\n> inspection type 1 means an inspection by an authorised inspector for the purposes of monitoring compliance with the Narcotic Drugs Act 1967 or any instrument made under that Act by the holder of a licence that is in force.\n\n> inspection type 2 means an inspection by an authorised inspector for the purpose of verifying information in relation to a licence that is in force that is provided by:\n\n    (a) the holder of the licence; or\n    (b) any other person, law enforcement agency, or any other agency of the Commonwealth, a State or a Territory;\n  that relates to any one or more of the following:\n    (c) activities engaged in under, or purportedly under, the licence or a permit that relates to the licence;\n    (d) conditions of the licence;\n    (e) any other matters relating to the licence, or the holder of the licence;\n    (f) any other matters relating to one or more permits that relate to the licence.\n\n> law enforcement agency has the same meaning as in the Narcotic Drugs Act 1967.\n\n> licence year has the meaning given by subsection 5(2).\n\n> medicinal cannabis licence has the same meaning as in the Narcotic Drugs Act 1967.\n\n> non‑commercial medicinal cannabis licence has the same meaning as in the Narcotic Drugs Regulation 2016.\n\n> permit has the same meaning as in the Narcotic Drugs Act 1967.\n\n> Regulatory Powers Act means the Regulatory Powers (Standard Provisions) Act 2014.\n\n> Note: Subsection (2) deals with references to provisions of the Regulatory Powers Act.\n\n  (2) In this instrument, a reference to a provision of the Regulatory Powers Act is a reference to that provision as it applies because of Chapter 4 of the Narcotic Drugs Act 1967.","sortOrder":3},{"sectionNumber":"Part 2","sectionType":"part","heading":"Matters relating to imposition of charge and amount of charge","content":"## Part 2—Matters relating to imposition of charge and amount of charge","sortOrder":4},{"sectionNumber":"5","sectionType":"section","heading":"Periods for imposition of charge on licences","content":"#### 5 Periods for imposition of charge on licences\n\n  (1) This section prescribes periods for the purposes of paragraph 6(1)(b) of the Act (which imposes charge on licences in force at a time in a prescribed period) for licences of the following classes:\n    (a) commercial medicinal cannabis licence;\n    (b) non‑commercial medicinal cannabis licence.\n  (2) The period (the licence year) for a licence is:\n    (a) if the licence was preserved by item 2 of Schedule 2 to the Narcotic Drugs Amendment (Medicinal Cannabis) Act 2021—12 months starting on:\n    (i) the day the licence came into force; or\n    (ii) a later anniversary of the day mentioned in subparagraph (i) of this paragraph; or\n    (b) if the licence was converted from multiple licences (the original licences) into a single licence by item 3 of Schedule 2 to the Narcotic Drugs Amendment (Medicinal Cannabis) Act 2021:\n    (i) 12 months ending immediately before the earliest anniversary day for one of the original licences to occur after the commencement of the Narcotic Drugs (Licence Charges) Amendment (Medicinal Cannabis Licences) Regulations 2021; or\n    (ii) 12 months starting on a later anniversary of the day mentioned in subparagraph (i) of this paragraph; or\n    (c) otherwise—12 months starting on:\n    (i) the day the licence comes into force; or\n    (ii) a later anniversary of the day mentioned in subparagraph (i).\n  (3) For the purposes of subparagraph (2)(b)(i), the anniversary day for an original licence means the day immediately after the last day of a licence year for that licence, had:\n    (a) the licence year been determined under subsection 5(2) of this instrument as in force before the commencement of the Narcotic Drugs (Licence Charges) Amendment (Medicinal Cannabis Licences) Regulations 2021; and\n    (b) the licence not been converted under item 3 of Schedule 2 to the Narcotic Drugs Amendment (Medicinal Cannabis) Act 2021.","sortOrder":5},{"sectionNumber":"6","sectionType":"section","heading":"Amount of charge on a medicinal cannabis licence","content":"#### 6 Amount of charge on a medicinal cannabis licence\n\n  (1) This section prescribes the amount of charge on a medicinal cannabis licence for the purpose of subsection 8(1) of the Act.\n  Amount for commercial medicinal cannabis licences\n  (2) The amount of charge on a commercial medicinal cannabis licence for a licence year is $28,310.\n  Amount for non‑commercial medicinal cannabis licences\n  (3) The amount of charge on a non‑commercial medicinal cannabis licence for the first year that the licence is in force is $28,310.\n  (4) The amount of charge on a non‑commercial medicinal cannabis licence for any later licence year is nil.\n\n> Note: For the definition of commercial medicinal cannabis licence, non‑commercial medicinal cannabis licence and licence year, see section 4.","sortOrder":6},{"sectionNumber":"6A","sectionType":"section","heading":"Amount of charge for inspections","content":"#### 6A Amount of charge for inspections\n\n  (1) For the purpose of subsections 6(3) and 8(1) of the Act, this section prescribes amounts of charge for an inspection relating to a licence that is in force.\n  (2) The amount of charge for an inspection type 1 is $12,950.\n  (3) The amount of charge for an inspection type 2 is $4,920.\n  (4) To avoid doubt, more than one charge under subsection (2) or (3) is payable during a licence year if more than one inspection is carried out during the year.\n\n> Note 1: For the meaning of licence, inspection type 1 and inspection type 2, see section 4.\n\n> Note 2: For the requirements regarding the payment of charge, see section 54B of the Narcotic Drugs Regulation 2016.","sortOrder":7},{"sectionNumber":"Part 3","sectionType":"part","heading":"Application, saving and transitional provisions","content":"## Part 3—Application, saving and transitional provisions","sortOrder":8},{"sectionNumber":"7","sectionType":"section","heading":"Application provision relating to the Narcotic Drugs (Licence Charges) Amendment (Cannabis) Regulations 2018","content":"#### 7 Application provision relating to the Narcotic Drugs (Licence Charges) Amendment (Cannabis) Regulations 2018\n\n  The amendment of section 6 made by the Narcotic Drugs (Licence Charges) Amendment (Cannabis) Regulations 2018 applies in relation to licences granted under the Narcotic Drugs Act 1967 on or after the commencement of this section.","sortOrder":9},{"sectionNumber":"8","sectionType":"section","heading":"Application provision relating to the Narcotic Drugs (Licence Charges) Amendment (2020 Measures No. 1) Regulations 2020","content":"#### 8 Application provision relating to the Narcotic Drugs (Licence Charges) Amendment (2020 Measures No. 1) Regulations 2020\n\n  (1) This section provides for the application of provisions of this instrument as amended by the Narcotic Drugs (Licence Charges) Amendment (2020 Measures No. 1) Regulations 2020.\n\n> Note: The Narcotic Drugs (Licence Charges) Amendment (2020 Measures No. 1) Regulations 2020 commenced on 15 July 2020.\n\n  (2) Subsection 5(2) applies in relation to a licence that came or comes into force before, on or after 15 July 2020.\n  (3) Paragraphs 6(2)(a) and (b) apply to charge for licence years that start on or after 15 July 2020.\n  (4) Paragraph 6(2)(c) applies to charge for licence years that end on or after 15 July 2020 but does not apply to the carrying out of an activity before 15 July 2020.\n  (5) This section does not affect the operation of section 7 of the Acts Interpretation Act 1901 in relation to liability for charge that was incurred before the commencement of the Narcotic Drugs (Licence Charges) Amendment (2020 Measures No. 1) Regulations 2020.\n\n> Note: Section 7 of the Acts Interpretation Act 1901 preserves the liability despite the amendments made by the Narcotic Drugs (Licence Charges) Amendment (2020 Measures No. 1) Regulations 2020. That section applies in relation to regulations because of section 13 of the Legislation Act 2003.","sortOrder":10},{"sectionNumber":"9","sectionType":"section","heading":"Application provision relating to the Narcotic Drugs (Licence Charges) Amendment (Cannabis‑Related Manufacture Licences) Regulations 2020","content":"#### 9 Application provision relating to the Narcotic Drugs (Licence Charges) Amendment (Cannabis‑Related Manufacture Licences) Regulations 2020\n\n  (1) This section provides for the application of this instrument as amended by the Narcotic Drugs (Licence Charges) Amendment (Cannabis‑Related Manufacture Licences) Regulations 2020.\n\n> Note: The Narcotic Drugs (Licence Charges) Amendment (Cannabis‑Related Manufacture Licences) Regulations 2020 commenced on 1 November 2020.\n\n  (2) Subsection 5(2) applies in relation to a cannabis‑related manufacture licence that came or comes into force before, on or after 1 November 2020.\n  (3) Paragraph 6(2)(a) applies to charge on a cannabis‑related manufacture licence for licence years that start on or after 1 November 2020.\n  (4) Paragraph 6(2)(a) also applies to charge on a cannabis‑related manufacture licence for a licence year that starts before 1 November 2020 and ends on or after 1 November 2020 as if the reference in that paragraph to $11,570 were a reference to the amount worked out using the formula:\n  ![Start formula $11,570 times start fraction Number of days in the licence year after 31 October 2020 over Number of days in the licence year end fraction end formula](image.002.png)\n  (5) Paragraph 6(2)(b) applies to charge on a cannabis‑related manufacture licence for licence years that start on or after 1 November 2020.\n  (6) Paragraph 6(2)(b) also applies to charge on a cannabis‑related manufacture licence for a licence year that starts before 1 November 2020 and ends on or after 1 November 2020 as if the amount worked out under that paragraph were instead the amount worked out under whichever of the following paragraphs applies:\n    (a) if any of the permits was in force on 1 November 2020—the amount worked out using the formula:\n    ![Start formula $19,160 times start fraction Number of days in the licence year after 31 October 2020 over Number of days in the licence year end fraction end formula](image.003.png)\n    (b) if all of the permits come into force after 1 November 2020—the amount worked out using the formula:\n    ![Start formula $19,160 times start fraction Number of days in the part of the licence year starting on the earliest day any of the permits comes into force and ending at the end of the licence year over Number of days in the licence year end fraction end formula](image.004.png)\n  (7) Paragraph 6(2)(c) applies to charge on a cannabis‑related manufacture licence for licence years that end on or after 1 November 2020 but does not apply to the carrying out of an activity in relation to the licence before 1 November 2020.","sortOrder":11},{"sectionNumber":"10","sectionType":"section","heading":"Application provisions relating to the Narcotic Drugs (Licence Charges) Amendment (Charge Amounts and Other Measures) Regulations 2021","content":"#### 10 Application provisions relating to the Narcotic Drugs (Licence Charges) Amendment (Charge Amounts and Other Measures) Regulations 2021\n\n  (1) The amendments of paragraphs 6(2)(a) and (b) made by the Narcotic Drugs (Licence Charges) Amendment (Charge Amounts and Other Measures) Regulations 2021 apply to charge on a licence for licence years that start on or after 1 July 2021.\n  (2) The amendment of subparagraph 6(2)(c)(i) made by the Narcotic Drugs (Licence Charges) Amendment (Charge Amounts and Other Measures) Regulations 2021 applies to charge on a licence for licence years that end on or after 1 July 2021 but does not apply to the carrying out of an activity before 1 July 2021.","sortOrder":12},{"sectionNumber":"11","sectionType":"section","heading":"Application of amendments made by the Narcotic Drugs (Licence Charges) Amendment (Charge Amounts) Regulations 2023","content":"#### 11 Application of amendments made by the Narcotic Drugs (Licence Charges) Amendment (Charge Amounts) Regulations 2023\n\n  (1) The amendments of section 6 made by the Narcotic Drugs (Licence Charges) Amendment (Charge Amounts) Regulations 2023 apply to licence years that start on or after 1 August 2023.\n  (2) The amendments of section 4 made by, and section 6A as inserted by, the Narcotic Drugs (Licence Charges) Amendment (Charge Amounts) Regulations 2023 apply to inspections commenced on or after 1 August 2023.","sortOrder":13},{"sectionNumber":"12","sectionType":"section","heading":"Application of amendments made by the Narcotic Drugs (Licence Charges) Amendment Regulations 2024","content":"#### 12 Application of amendments made by the Narcotic Drugs (Licence Charges) Amendment Regulations 2024\n\n  (1) The amendments of section 6 made by the Narcotic Drugs (Licence Charges) Amendment Regulations 2024 apply to licence years that start on or after 1 July 2024.\n  (2) The amendments of section 6A made by the Narcotic Drugs (Licence Charges) Amendment Regulations 2024 apply to inspections commenced on or after 1 July 2024.","sortOrder":14},{"sectionNumber":"13","sectionType":"section","heading":"Application of amendments made by the Narcotic Drugs (Licence Charges) Amendment (Charge Amounts) Regulations 2025","content":"#### 13 Application of amendments made by the Narcotic Drugs (Licence Charges) Amendment (Charge Amounts) Regulations 2025\n\n  (1) The amendments of section 6 made by the Narcotic Drugs (Licence Charges) Amendment (Charge Amounts) Regulations 2025 (the amending regulations) apply to licence years that start on or after 1 July 2025.\n  (2) The amendments of section 6A made by the amending regulations apply to inspections commenced on or after 1 July 2025.","sortOrder":15}],"analysis":{"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":true,"description":"The instrument now not only prescribes basic licence charges but also specifies inspection charges, detailed licence‑year rules for preserved or converted licences, and prorating formulas for periods spanning amendment commencements. Multiple amendment application clauses (2018, 2020, 2021, 2023, 2024, 2025) alter charge amounts and effective dates, expanding the regulation's operational detail and transitional complexity compared with a single, static charging schedule."},"complexity_factors":["Cross‑references to the Narcotic Drugs (Licence Charges) Act 2016, the Narcotic Drugs Act 1967, the Regulatory Powers (Standard Provisions) Act 2014 and the Narcotic Drugs Regulation 2016","Detailed licence‑year computation rules, including special treatment for licences preserved or converted under Schedule 2 of the 2021 Amendment","Different charge amounts by licence class (commercial vs non‑commercial) and by inspection type (type 1 and type 2)","Proration formulas for licence years that span amendment commencement dates (presented as embedded formula images)","Multiple staged application and transitional provisions across several amendment instruments (2018, 2020, 2021, 2023, 2024, 2025) with differing effective dates","Provision that multiple inspection charges may be levied in a single licence year if multiple inspections occur, affecting potential cumulative cost","Interplay between prescribed charge amounts and payment requirements in other instruments (eg, section 54B of the Narcotic Drugs Regulation 2016)"],"plain_english_summary":"This regulation prescribes when licence charges apply for medicinal‑cannabis licences, how a licence year is calculated (including special rules for licences preserved or converted by recent amendments), the dollar amounts payable for commercial and non‑commercial licences, and fees for two inspection types. Licence‑holders and persons subject to inspections pay these charges, which impose direct compliance costs and create timing/proration effects that affect budgeting and operational choices. Multiple transitional clauses set different commencement dates for amendments."},"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"},"kimi_summary":{"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":true,"description":"Originally enacted in 2016, this regulation has grown significantly beyond simple fee-setting. It now contains extensive transitional machinery (sections 7-13) to manage seven separate amendments, complex pro-rata formulas for licence conversions, and a dual-charge system (licence fees + inspection fees added in 2023). The original scope was setting annual charges; it now functions as a comprehensive fee administration framework with historical preservation rules for pre-2021 licence holders."},"complexity_factors":["Multiple amendment layers: 7 separate amending instruments (2018, 2020 x2, 2021, 2023, 2024, 2025) with complex transitional provisions in sections 7-13","Nested conditional logic in section 5(2): Three-tiered test for determining licence years (preserved licences vs converted licences vs new licences) with sub-conditions","Formula-based calculations in sections 9(4) and 9(6): Pro-rata fee calculations using fractions of days for transitional periods","Extensive cross-referencing: Definitions imported from Narcotic Drugs Act 1967, Narcotic Drugs Regulation 2016, and Regulatory Powers (Standard Provisions) Act 2014","Temporal complexity: Different commencement dates (15 July 2020, 1 November 2020, 1 July 2021, 1 August 2023, 1 July 2024, 1 July 2025) with specific application rules for each","Dual fee structures: Separate regimes for licence charges (section 6) and inspection charges (section 6A) with different application timing","Interpretation section (section 4) contains 10 defined terms, many by reference to external instruments"],"plain_english_summary":"This regulation sets the fee schedule for Australian medicinal cannabis licences: commercial licence holders pay annual charges ($28,310) and inspection fees (routine checks ~$12,950; targeted checks ~$4,920), while non‑commercial holders pay the annual charge only in their first year. It defines the licence year and inspection billing rules and clarifies transitional arrangements for licences predating the 2021 changes. It’s the government’s cost‑recovery framework for regulating medicinal cannabis."}},"importantCases":[],"_links":{"self":"/api/acts/narcotic-drugs-licence-charges-regulation-2016","history":"/api/acts/narcotic-drugs-licence-charges-regulation-2016/history","analysis":"/api/acts/narcotic-drugs-licence-charges-regulation-2016/analysis","conflicts":"/api/acts/narcotic-drugs-licence-charges-regulation-2016/conflicts","importantCases":"/api/acts/narcotic-drugs-licence-charges-regulation-2016/important-cases","documents":"/api/acts/narcotic-drugs-licence-charges-regulation-2016/documents"}}