Why it matters: A new study from the University of Western Australia found that legalizing cannabis could bring $243.5 million per year in the first five years to Western Australia. Licensing fees would generate an estimated $6.5 million for the economy each year. Cannabis is illegal in Australia, with penalties varying from state to state.
What they are saying: The leader of the Legalise Cannabis WA Party, Brian Walker, said, “This is the first time anyone has shown their working, and set out exactly how their figures were arrived at. On the spending side we’ve got stuff like your police—for chasing a cannabis crime—the courts and the corrective services for managing that. Altogether, that’s about $100 million per year.”
The big picture: Cannabis legalization in Australia may soon move from the realm of the theoretical and into actual policy. The Greens, the minor party in Australia, said last year that the country’s constitution empowers parliament to override states and legalize pot for recreational use.
What to watch: The proposal from the Greens would “allow for the regulation and sale of approved cannabis strains for recreational consumption in Australia, joining the handful of countries (and US states) that have already moved to legalize it.” To get anywhere, the bill would need government support and Labour hasn’t yet given any indication it would throw its weight behind the legislation.
My take: The economic benefits of legalizing cannabis cannot be ignored, and this study from the University of Western Australia provides concrete evidence of this. Not only does it generate tax revenue, it also reduces the costs associated with enforcing laws against cannabis use. The move towards legalization in Australia is a positive step forward, and I hope that the government will give its support to this legislation.
