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Overview

Are you wondering how to become a medicinal cannabis grower in Australia? To legally grow, manufacture, import, or export medicinal cannabis in Australia, individuals and businesses must obtain a licence and permit and operate under the oversight of the Office of Drug Control (ODC), the Therapeutic Goods Administration (TGA), and relevant state or territory authorities. Australia’s governance system (federal, state/territory, and local) means cannabis-related activities are regulated across multiple levels.

Cultivating cannabis for medicinal purposes is strictly regulated under the Commonwealth Narcotic Drugs Act 1967. While some cannabis-related operations are permitted for medicinal and scientific purposes, they are only lawful when carried out under an approved licence and the required permits. Personal cultivation, even for medicinal reasons, remains illegal in most Australian jurisdictions.

This guide explains the legal steps to becoming a licensed medicinal cannabis grower in Australia, from licence types and regulatory oversight to fees and application procedures.

Path to Cannabis Legalization

Australia legalized the cultivation of cannabis for medicinal and scientific use at the federal level on 24 February 2016. This was followed by the approval of low-THC hemp food products for human consumption in November 2017 by Food Standards Australia New Zealand (FSANZ).

On 25 September 2019, the Australian Capital Territory passed legislation that allowed adults to possess and grow small amounts of cannabis for personal use starting 31 January 2020. However, these changes conflict with federal law, which still prohibits recreational cannabis use and the supply of cannabis or its seeds.

Although advocacy continues, there are currently no confirmed federal plans to legalize recreational cannabis.

How Big Is the Opportunity?

Australia’s legal cannabis industry was valued at USD 123.9 million in 2024 and is forecast to grow to USD 540.6 million by 2030, with an expected annual growth rate of 23.70%. The market is fueled by ongoing regulatory changes, government support, and expanding product lines. Hemp and CBD products dominate the industry, particularly in industrial and therapeutic applications.

How Much Does It Cost to Get a Licence to Grow Medicinal Cannabis in Australia?

The Office of Drug Control (ODC) determines the applicable fees for licence and permit applications, as well as related regulatory activities.  The table below provides a breakdown of the fees and charges in effect from 1 July 2025 under the current Scheme.

Licence and Permit Fees

Fee Type

Fee (AUD)

New Licence Application

$13,830

Licence Variation – Type 1

$610

Licence Variation – Type 2

$1,550

Licence Variation – Type 3

$2,270

Licence Variation – Type 4

$12,610

Initial Cultivation and Production Permit

$12,380

Subsequent Cultivation and Production Permit

$9,480

Permit Variation – Type 1

$645

Permit Variation – Type 2

$1,730

Permit Variation – Type 3

$5,370

Annual Licence Charge

$28,310

 

Inspection Fees

 

Inspection Type

Description

Fee (AUD)

Application-Based Inspection

Conducted as part of licence, permit, or variation assessment

$9,560

Routine or Ongoing Inspection (Type 1)

Standard site inspection by an authorised inspector

$12,950

Verification Inspection (Type 2)

Inspection to confirm accuracy of submitted information

$4,920

 

How to Apply for a Medicinal Grower License in Australia

Apply for a Medicinal Cannabis Licence

You may apply for a licence to cultivate, produce, or manufacture cannabis for medicinal or scientific purposes. The licence allows you to:

  • Cultivate cannabis plants
  • Extract resin, flowers, or fruiting tops (production)
  • Manufacture drugs or extracts from cannabis or resin

Applications are accepted at any time, even after the site has been constructed or fitted out. Licences are not guaranteed, and approval is required before commencing any activities.

Before applying, ensure you understand the complete process and requirements.

Supporting Documentation

You must submit comprehensive supporting documents, including:

Fit and Proper Person Assessment:

  • Identity verification
  • Business and financial background
  • Reputation and experience
  • Information about associates

Site and Security Details:

  • Detailed site and floor plans
  • Satellite image with security overlays

Site or Authorised Person Changes

You can request modifications to your licence by applying for a variation. The cost for variations ranges from $595 to $12,280, depending on the type and scope of changes.

Type 1 Licence Variation

This variation includes removing authorised persons, changing the licence holder’s name (same legal entity), or updating the names or descriptions of authorised persons.

Type 2 Licence Variation

Covers changes such as extending the licence period, modifying the approved security systems, or making other updates not covered under Types 1, 3, or 4.

Type 3 Licence Variation

Used for altering the site layout or floorplans, changing authorised activities, or adding authorised persons.

Type 4 Licence Variation

Applies when adding a new site to an existing licence.

Cannabis License Application Process 

Licences are assessed in three main phases:

  1. Application Receipt (10 working days):
    The application is logged, and an invoice is issued. Incomplete applications are not reviewed until fees are paid.
  2. Assessment (up to 195 working days):
    After payment, your application is assigned to an assessor. A fit and proper assessment is also initiated. Additional information may be requested.
  3. Decision:
    A delegate reviews the assessment report and makes the final decision. You will be notified once a determination is made.

Medicinal Cannabis Permits

A license alone does not authorize you to begin operations. You must also obtain the relevant permits. Activities can only begin once both the licence and permits are approved.

You may also apply to change:

  • Licence holder’s name on the permit (Type 1)
  • Maximum quantities held at any time, without increasing overall allowance (Type 1)
  • Supply pathway categories (Type 2)
  • Total authorised quantities (Type 3)
  • Approved cultivation and production activities (Type 3)

Final Thoughts

Becoming a licensed medicinal cannabis grower in Australia involves navigating a detailed regulatory framework, securing both a licence and the necessary permits, and meeting strict site, security, and personnel requirements. The process is designed to ensure that cultivation and production are conducted safely, legally, and in alignment with national health standards.

Whether you’re a prospective applicant or an existing licence holder looking to expand or make changes, understanding the steps, associated costs, and compliance obligations is essential. By following the proper application procedures and maintaining ongoing regulatory compliance, you can contribute to Australia’s growing medicinal cannabis industry in a lawful and responsible way.

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