Narcotic Drugs Act 1967

Part 1—General provisions

1 Short title

This Act may be cited as the Narcotic Drugs Act 1967.

2 Commencement

This Act shall come into operation on a date to be fixed by Proclamation, which shall not be a date earlier than the date on which the Convention comes into force in respect of the Commonwealth.

2A Object of this Act

The object of this Act is to give effect to certain of Australia’s obligations under the Single Convention on Narcotic Drugs, 1961, as in force from time to time.

3 Simplified outline of this Act

This Act gives effect to certain of Australia’s obligations under the Single Convention on Narcotic Drugs, 1961, as in force from time to time. The Convention, as amended by the 1972 Protocol, is set out in Schedule 1 to this Act.

A licensing and permit scheme regulates the cultivation of cannabis plants, the production of cannabis and cannabis resin, the manufacture of cannabis drugs, and activities relating to such cultivation, production and manufacture. Cultivation and production under the scheme may be undertaken for medicinal or scientific purposes whereas the manufacture of cannabis drugs may be undertaken for a permitted supply.

A separate licensing and permit scheme regulates the manufacture of narcotic drugs covered by the Convention.

Authorised inspectors have monitoring, inspection and enforcement powers under the Regulatory Powers Act to ensure this Act is being complied with. The Secretary has comprehensive powers to give directions to licence holders and former licence holders.

4 Interpretation

(1) In this Act:

1972 Protocol means the Protocol Amending the Single Convention on Narcotic Drugs, 1961, done at Geneva on 25 March, 1972.

agency of the Commonwealth, a State or a Territory includes the following:

(a) the Crown in right of the Commonwealth, a State or a Territory;
(b) a Minister of the Commonwealth, a State or a Territory;
(c) a Commonwealth, State or Territory government department;
(d) an instrumentality of the Commonwealth, a State or a Territory, including a body corporate established for a public purpose by or under a law of the Commonwealth, a State or a Territory;
(e) a company in which a controlling interest is held by any one of the following persons, or by 2 or more of the following persons together:
(i) the Crown in right of the Commonwealth, a State or a Territory;
(ii) a person or body covered by paragraph (b) or (d);
(f) a court, tribunal or parole board of the Commonwealth, a State or a Territory.

authorised inspector means a person appointed as an authorised inspector under section 13H.

business associate: 2 or more persons are business associates, in relation to a business, if each person:

(a) both:
(i) holds a relevant financial interest, or is entitled to exercise a relevant power (whether in his or her own right or on someone else’s behalf), in the business; and
(ii) because of that interest or power, is able to exercise a significant influence over, or with respect to, the management or operation of the business; or
(b) holds any relevant position (whether in his or her own right or on someone else’s behalf) in the business.

cannabis has the same meaning as in the Convention.

cannabis drug means:

(a) cannabis; or
(b) cannabis resin; or
(c) extracts of cannabis; or
(d) tinctures of cannabis; or
(e) another drug that includes, or is from, any part of the cannabis plant.

cannabis plant has the same meaning as in the Convention.

cannabis resin has the same meaning as in the Convention.

charge means charge imposed by the Narcotic Drugs (Licence Charges) Act 2016.

civil penalty provision has the same meaning as in the Regulatory Powers Act.

coca leaves has the same meaning as in the Convention.

Collector has the same meaning as in the Customs Act 1901.

Comptroller‑General of Customs means the person who is the Comptroller‑General of Customs in accordance with subsection 11(3) or 14(2) of the Australian Border Force Act 2015.

Convention means the Single Convention on Narcotic Drugs, 1961, done at New York on 30 March 1961, as amended by the Protocol and as in force from time to time.

Note: A copy of the English text of the Convention, as amended and in force at the commencement of section 1 of the Narcotic Drugs Amendment Act 2016, is set out in Schedule 1.

cultivate a cannabis plant includes the following:

(a) sow a seed of a cannabis plant;
(b) plant, grow, tend, nurture or harvest a cannabis plant;
(c) graft, divide or transplant a cannabis plant;

but does not include the separation of cannabis or cannabis resin from a cannabis plant.

decision on review: see subsection 15H(5).

drug means any substance that is a drug for the purposes of the Convention, and includes the following:

(a) any substance prescribed by the regulations for the purposes of this paragraph;
(b) any substance prescribed by the regulations under section 8 of this Act.

fit and proper person: see sections 8A and 8B.

guidelines means guidelines issued by the Minister under section 26C.

handling includes stacking, stowing, storing, transporting, loading, unloading and any operation incidental to, or arising out of, any of those operations.

head of an agency means:

(a) if the agency is a court—the registrar (however described) of the court; or
(b) otherwise—the principal officer (however described) of the agency.

internal reviewer: see subsection 15H(1).

issuing officer means:

(a) a Judge of a court created by the Parliament; or
(b) a Deputy President of the Administrative Review Tribunal; or
(c) a senior member or general member of the Administrative Review Tribunal who:
(i) is enrolled as a legal practitioner of the High Court, or the Supreme Court of a State or Territory; and
(ii) has been so enrolled for at least 5 years.

law enforcement agency means the following:

(a) a body, agency or organisation that is responsible for, or deals with, law enforcement, criminal intelligence, criminal investigation, fraud or security intelligence in, or in a part of, Australia;
(b) a body, agency or organisation prescribed by the regulations.

licence means:

(a) a manufacture licence; or
(b) a medicinal cannabis licence.

licensed premises means premises at which activities authorised under a licence take place.

manufacture licence: see subsection 11G(1).

manufacture permit: see subsection 12(1).

medicinal cannabis licence: see subsection 8E(1).

medicinal cannabis permit: see subsection 8P(1).

narcotic drug means a drug other than a cannabis drug.

narcotic preparation means any mixture, whether solid or liquid, that contains a drug.

offence against this Act includes an offence against the Crimes Act 1914 or the Criminal Code that relates to this Act.

opium has the same meaning as in the Convention.

permit means:

(a) a manufacture permit; or
(b) a medicinal cannabis permit.

permitted supply means:

(a) the supply of a cannabis drug for use in a clinical trial that is, or is likely to be, approved under the Therapeutic Goods Act 1989 or notified to the Secretary under that Act; or
(b) the supply of a cannabis drug in accordance with an approval or authority under that Act; or
(c) the supply of a cannabis drug for use in medical or scientific research where that research:
(i) is not a clinical trial of a kind referred to in paragraph (a); and
(ii) does not involve the drug being administered to humans; or
(d) the supply of a cannabis drug for use as a reference standard for medical or scientific testing purposes; or
(e) the supply of a cannabis drug in circumstances prescribed by the regulations.

premises includes the following:

(a) a structure or building;
(b) a vehicle, vessel or aircraft;
(c) an area of land or any other place (whether or not enclosed or built on), including a place situated underground or under water;
(d) a part of a thing referred to in paragraph (a), (b) or (c).

production has the same meaning as in the Convention.

Regulatory Powers Act means the Regulatory Powers (Standard Provisions) Act 2014.

relative of a person includes a spouse, parent, step‑parent, child, step‑child, adopted child, sibling or step‑sibling of the person.

relevant court means:

(a) the Federal Court of Australia; or
(b) the Federal Circuit and Family Court of Australia (Division 2); or
(c) a court of a State or Territory that has jurisdiction in relation to matters arising under this Act.

relevant financial interest, in relation to a business, means:

(a) a share in the capital of the business; or
(b) an entitlement to receive any income derived from the business.

relevant position, in relation to a business, means a position (however described) of director, partner, trustee, manager or other executive position, or secretary.

relevant power, in relation to a business, means any power, whether exercisable by voting or otherwise and whether exercisable alone or in association with others:

(a) to participate in any directorial, managerial or executive decision of the business; or
(b) to elect or appoint any person to any relevant position in relation to the business.

reviewable decision: see section 15E.

Secretary means the Secretary of the Department administered by the Minister administering the National Health Act 1953.

sensitive law enforcement information means information the disclosure of which is reasonably likely to prejudice Australia’s law enforcement interests, including Australia’s interests in the following:

(a) avoiding disruption to national and international efforts relating to law enforcement, criminal intelligence, criminal investigation, foreign intelligence, security intelligence or the integrity of law enforcement agencies;
(b) protecting the technologies and methods used to collect, analyse, secure or otherwise deal with, criminal intelligence, foreign intelligence, security intelligence or intelligence relating to the integrity of law enforcement agencies;
(c) the protection and safety of:
(i) informants or witnesses, or persons associated with informants or witnesses; or
(ii) persons involved in the protection or safety of informants or witnesses;
(d) ensuring that intelligence and law enforcement agencies are not discouraged from giving information to a nation’s government and government agencies.

serious offence means the following:

(a) an offence against a law of the Commonwealth, a State, a Territory or another country that:
(i) involves dishonesty, fraud or cultivation of, or trafficking in, drugs; and
(ii) is punishable by a maximum penalty of imprisonment for not less than 3 months;
(b) an offence against a law of the Commonwealth, a State, a Territory or another country that is punishable by a maximum penalty of imprisonment for not less than 5 years.

spouse of a person includes:

(a) another person (whether of the same sex or a different sex) with whom the person is in a relationship that is registered under a law of a State or Territory prescribed for the purposes of section 2E of the Acts Interpretation Act 1901 as a kind of relationship prescribed for the purposes of that section; and
(b) another person who, although not legally married to the person, lives with the person on a genuine domestic basis in a relationship as a couple.

standards means standards issued by the Minister under section 26B.

supply includes the following, whether free of charge or otherwise:

(a) supply by way of sale, exchange, gift, lease, loan, hire or hire‑purchase;
(b) supply by way of sample;
(c) supply in the course of testing safety or efficacy;
(d) supply by way of administration to, or application in the treatment of, a person.

this Act includes:

(a) instruments made under this Act;
(b) the Regulatory Powers Act as it applies because of this Act.

(2) For the purposes of this Act, the manufacturing of a drug consists of the carrying out of any process by which the drug may be obtained, and includes the refining of a drug and the transformation of one drug into another drug, but does not include the separation of opium, coca leaves, cannabis or cannabis resin from the plants from which it is or they are obtained.

5 Crown to be bound

(1) This Act binds the Crown in each of its capacities. (2) This Act does not make the Crown liable to be prosecuted for an offence.

6 Extension to external Territories

This Act extends to every external Territory.

7 Inconsistency with State and Territory laws

This Act, regulations under this Act and directions given under this Act do not apply to the exclusion of any law of a State or Territory or any regulation in force under an Act except in so far as that law or that regulation is inconsistent with an express provision of this Act, those regulations or those directions.

7A Interaction with State and Territory laws

(1) Despite section 7, Chapter 2 of this Act, and other provisions of this Act so far as they relate to that Chapter, apply to the exclusion of a law, or a provision of a law, of a State or a Territory to the extent that the law or provision purports (whether expressly or impliedly) to do one or more of the following: (a) provide for the grant of a licence (however described) authorising the cultivation of cannabis plants for the purposes of producing cannabis or cannabis resin for medicinal or scientific purposes, or otherwise authorise such cultivation; (b) provide for the grant of a licence (however described) authorising the production of cannabis or cannabis resin for medicinal or scientific purposes, or otherwise authorise such production; (c) prohibit an activity, or prevent a person from engaging in an activity, that: (i) is authorised under that Chapter or another provision of this Act so far as it relates to that Chapter; and (ii) is, or is related to, the cultivation of cannabis plants or the production of cannabis or cannabis resin. (2) Subsection (1) does not apply to a law, or a provision of a law, prescribed by the regulations for the purposes of this subsection. (3) Regulations made for the purposes of subsection (2) may prescribe a law, or a provision of a law, in relation to its operation in prescribed circumstances.

8 Provisional application of Act to substances

Where the Commission on Narcotic Drugs of the Economic and Social Council of the United Nations decides, in accordance with paragraph 3 of Article 3 of the Convention, that the Parties to the Convention shall apply provisionally to a substance all measures of control applicable to drugs in Schedule I annexed to the Convention, the regulations may provide that the substance is a drug for the purposes of this Act.

Part 2—Fit and proper person requirements

8A Matters to be taken into account in deciding whether a natural person is a fit and proper person

Without limiting the matters to which the Secretary may have regard in deciding whether a natural person is a fit and proper person to hold a licence, or to be associated with the holder of a licence, the Secretary may have regard to the following: (a) any conviction of the person for an offence against a law of the Commonwealth, a State or a Territory; (b) any civil penalty (however described) imposed upon the person under a law of the Commonwealth, a State or a Territory; (c) any revocation or suspension of a licence or permit (however described) held by the person under a law of the Commonwealth, a State, a Territory or another country, being a law relating to the prohibition or regulation of drugs; (d) the connections and associations that the person has with other persons (including but not limited to the person’s relatives); (e) the person’s previous business experience; (f) the capacity of the person to comply with conditions of the licence; (g) whether the person has a sound and stable financial background or is in financial circumstances that may significantly limit the person’s capacity to comply with his or her obligations under a licence; (h) whether the person is of good repute, having regard to matters going to their character, honesty and professional and personal integrity; (i) the person’s history of compliance with this Act.

Note: The Secretary must refuse to grant a licence to a person if the Secretary is not satisfied on reasonable grounds that the person and his or her business associates are fit and proper, and must revoke the licence if satisfied on reasonable grounds that they are not fit and proper.

8B Matters to be taken into account in deciding whether a body corporate is a fit and proper person

Without limiting the matters to which the Secretary may have regard in deciding whether a body corporate is a fit and proper person to hold a licence, or to be associated with the holder of a licence, the Secretary may have regard to the following: (a) any conviction of the body corporate for an offence against a law of the Commonwealth, a State or a Territory; (b) any civil penalty (however described) imposed upon the body corporate under a law of the Commonwealth, a State or a Territory; (c) if there is such a conviction or imposition of a civil penalty upon the body corporate: (i) whether the offence concerned was committed, or the conduct to which the civil penalty relates occurred, at a time when any person who is presently a director or officer of the body corporate was a director or officer; and (ii) whether the offence concerned was committed, or the conduct to which the civil penalty relates occurred, at a time when any shareholder of the body corporate who is presently in a position to influence the management of the body corporate was such a shareholder; (d) any revocation or suspension of a licence or permit (however described) held by the body corporate under a law of the Commonwealth, a State, a Territory or another country, being a law relating to the prohibition or regulation of drugs; (e) the connections and associations that the body corporate, and its directors and officers, have with other persons (including but not limited to relatives of such directors and officers); (f) the previous business experience of the directors and officers of the body corporate, and of the shareholders of the body corporate who are presently in a position to influence the management of the body corporate; (g) whether the body corporate has a sound and stable financial background or is in financial circumstances that may significantly limit the capacity of the body corporate to comply with its obligations under a licence; (h) the capacity of the body corporate to meet the conditions of the licence; (i) whether the directors and officers of the body corporate are of good repute, having regard to matters going to their character, honesty and professional and personal integrity; (j) the body corporate’s history of compliance with this Act.

Note: The Secretary must refuse to grant a licence to a person if the Secretary is not satisfied on reasonable grounds that the person and his or her business associates are fit and proper, and must revoke the licence if satisfied on reasonable grounds that they are not fit and proper.

8C Act does not affect spent conviction provisions

Nothing in this Act affects the operation of Part VIIC of the Crimes Act 1914 (which includes provisions that, in certain circumstances, relieve persons from the requirement to disclose spent convictions and require persons aware of such convictions to disregard them).

Chapter 2—Medicinal cannabis licences and permits

8D Simplified outline of this Chapter

This Chapter deals with medicinal cannabis licences and medicinal cannabis permits.

A medicinal cannabis licence may authorise one or more of the following activities:

(a) the cultivation of cannabis plants for the purpose of producing cannabis or cannabis resin for medicinal or scientific purposes and, if appropriate, the obtaining of cannabis plants for the purpose of such cultivation;

(b) the production of cannabis or cannabis resin for medicinal or scientific purposes;

(c) the manufacture of a cannabis drug for one or more permitted supplies;

(d) activities relating to such obtaining, cultivation, production or manufacture.

Before a licence holder can engage in any such activities, the licence holder must obtain a medicinal cannabis permit. Medicinal cannabis permits specify matters relating to the activities that are authorised by the licence.

Certain conditions are imposed on all medicinal cannabis licences, and the Secretary may also impose additional conditions.

Medicinal cannabis licences and permits can be varied or revoked in certain circumstances.

There are offences and civil penalties relating to the cultivation and obtaining of cannabis plants, the production of cannabis and cannabis resin and the manufacture of cannabis drugs.

8DA Purpose of this Chapter

A purpose of this Chapter is to enable the following activities to be undertaken in order to ensure that medicinal cannabis products are available to patients in Australia for therapeutic purposes: (a) the cultivation and obtaining of cannabis plants for the purposes of producing cannabis or cannabis resin for medicinal or scientific purposes; (b) the production of cannabis or cannabis resin for medicinal or scientific purposes; (c) the manufacture of a cannabis drug for a permitted supply.