Australia Cannabis Industry: Medicinal Market, Regulation, and Ownership
This hub explains how Australia's cannabis industry works: a federally regulated medicinal market built on the Narcotic Drugs Act 1967 and the Therapeutic Goods Administration (TGA) prescribing pathways, with licensing handled by the Office of Drug Control. It covers cultivation and manufacturing licences, domestic supply versus export, the Special Access Scheme and Authorised Prescriber pathway, the growth of telehealth prescribing, and state-level differences in adult-use law, including the Australian Capital Territory's personal-use exemption. It also tracks ownership changes, consolidation, and foreign investment, including reports of a Chinese-owned firm taking over one of the country's largest cannabis farms.
Executive summary
Australia runs one of the world's largest federally licensed medicinal cannabis systems, and its first big wave of cultivator consolidation is now underway. The market was built on the Narcotic Drugs Act 1967 and the Therapeutic Goods Act 1989. A federal agency, the Office of Drug Control (ODC), licenses growers and manufacturers. The Therapeutic Goods Administration (TGA) governs patient access. Recreational use is legal only in the Australian Capital Territory.
On 29 September 2026, ABC News reported that a Chinese-owned firm had taken over one of Australia's largest cannabis farms. The headline puts foreign ownership of licensed cultivation capacity at the center of the debate. This page does not restate the deal terms, because the full details sit in the ABC report. CannIntel will append dated updates here as the buyer, price, and regulatory approvals are confirmed.
Three facts frame everything else on this page:
- Medicinal cannabis has been legal federally since late 2016, when cannabis medicines moved to Schedule 8 (Controlled Drug) of the Poisons Standard.
- Patient access runs mostly through unapproved-product pathways, chiefly the Special Access Scheme (SAS) and the Authorised Prescriber scheme. Very few cannabis products hold full marketing approval.
- A foreign takeover has to clear three gates: foreign investment screening under the Foreign Acquisitions and Takeovers Act 1975, ODC licence suitability, and Good Manufacturing Practice (GMP) standing with the TGA.
Read this page as the structural reference for operators, investors, and patients. It covers who holds power, which statutes bind, where state law diverges, and how the economics have shifted from a licensing gold rush toward price competition and consolidation.
Why this matters
Australia is a test case for a federally run, prescription-only cannabis model, and who owns its farms shapes supply security, exports, and patient prices.
Four stakeholder groups have money or health outcomes tied to the answer.
Patients and prescribers
Australian patients obtain cannabis medicines through a doctor, usually under SAS Category B approval or an Authorised Prescriber arrangement. The TGA publishes approval data showing steady growth since 2016, and telehealth clinics now account for much of the prescribing. Patients pay out of pocket, because cannabis products are not listed on the Pharmaceutical Benefits
Frequently asked questions
Is cannabis legal in Australia?
Medicinal cannabis has been legal federally since 2016 through amendments to the Narcotic Drugs Act 1967, and patients need a prescription from an authorised doctor. Recreational sales are illegal. The Australian Capital Territory is the exception, allowing adults limited possession and home growing since January 2020, though there is still no legal retail market.
Who regulates the Australian cannabis industry?
Regulation is split across agencies. The Office of Drug Control (ODC) issues licences and permits for cultivation, production, manufacture, and export. The Therapeutic Goods Administration (TGA) regulates medicines, including product standards and prescribing access. State and territory health departments add their own rules on prescribing and possession.
How do patients access medicinal cannabis in Australia?
Most patients use the TGA's Special Access Scheme (Category B) or the Authorised Prescriber scheme, where a doctor applies for approval to prescribe an unapproved product. Clinical trials are another route. Telehealth clinics have become a common way for patients to see prescribers, and products are dispensed by pharmacies.
What licences do Australian cannabis companies need?
Operators generally need a cannabis licence from the Office of Drug Control to cultivate or produce cannabis, plus a manufacturer licence under the Narcotic Drugs Act. They also need permits for specific activities, such as growing particular quantities. Importing, exporting, and supplying products also involves TGA and Customs requirements.
Is Australia a major cannabis exporter?
Australia is licensed to export medicinal cannabis, and several local producers have shipped product to markets such as Germany, the UK, and others in Europe. Export demand is a key reason many licensed farms were built, though the domestic prescription market has grown into the main focus for many operators.
Can foreign companies own Australian cannabis farms?
Foreign investment is permitted, but it is subject to Australia's Foreign Investment Review Board (FIRB) process where thresholds or sensitive-sector rules apply, plus ODC licence suitability checks. Reports of a Chinese-owned firm taking over one of the country's largest cannabis farms have drawn attention to ownership and oversight.
Why is there consolidation in Australia's cannabis sector?
Many licensed producers entered the market with heavy capital spending ahead of demand. Price competition, import competition, and the cost of compliance have squeezed margins. As a result, struggling growers have been sold, restructured, or acquired, which has pushed some assets into new ownership, including by overseas investors.
Is recreational cannabis likely to be legalised in Australia?
There is no federal adult-use legalisation. Some jurisdictions have debated reform, and the ACT already decriminalised personal possession and home growing. Any wider change would require state and territory legislation, and political support has varied between governments.
Can you drive after using prescribed medicinal cannabis in Australia?
Rules vary by state. In several jurisdictions, THC detected by roadside testing can lead to an offence even with a prescription, though Tasmania and some others have introduced limited defences for patients who are not impaired. Patients should check their local road laws and consult their prescriber.
What is the difference between hemp and medicinal cannabis in Australia?
Hemp is low-THC cannabis grown mainly for fibre, seed, and food, regulated mostly by states and Food Standards Australia New Zealand (FSANZ), which allowed hemp seed foods in 2017. Medicinal cannabis is high-THC or CBD-rich product made under federal licences and prescribed as a therapeutic good.
The cannabis newsletter you forward to your team.
Federal policy, market data, grower alerts, and the one story that matters today. Sent every weekday at 7am. Free.
No spam. Unsubscribe with one click. 21+ only.