PBO Report: Legalizing Cannabis to Give Australian Economy $2B a Year

The Australian economy would gain about $2 billion a year if cannabis is legalized, the Parliamentary Budget Office (PBO) has found.

While PBO’s estimate was challenged by the lack of enough information, it said it based its prediction for the Australian economy on production licence fees of $3,500 an application, with annual fees varying up to $2,300, depending on the size of the operation, the Guardian reported on Sunday.

For its analysis, the PBO assumed the average recreational cannabis user purchased three grams a week.

Meanwhile, the Green party is pushing for legalizing the recreational use of cannabis for adults in Australia. However, Australia’s Labor and the Coalition are merely looking into legalizing it for medicinal use.

The PBO estimates that the Greens plan would raise $3.6bn over four years from July 2019, based on a 25% excise, as well as GST.

Citing Australian Institute of Health and Welfare statistics, the Greens estimate that about 35% of Australians have used cannabis.