The Allan Labor Government is opening the door to a new sustainable hemp industry by considering ways to make it easier for Victorian farmers to grow hemp and seize the growing opportunities in this market.
Minister for Agriculture Ros Spence today launched public consultation on proposed new legislation, inviting Victorians to share their priorities for the industry, what's working under current laws and ideas for improvement.
Hemp is a fast-growing crop, and fibres and seeds can be used for a wide range of products, including building materials, packaging, biofuels, textiles, seed oils and other food products.
Industrial hemp is currently regulated under the Drugs, Poisons and Controlled Substances Act 1981, which exempts licensed growers from cannabis-related offence when cultivating and processing hemp for non-therapeutic use.
The proposed new stand-alone legislation will mean industrial hemp will no longer be directly associated with drugs and poisons laws - helping to reduce stigma and clarify its legal status.
Having stand-alone legislation tailored to the specific needs of industrial hemp industry and farmers will also better support industry growth and unlock new opportunities for regional jobs and investment.
This will deliver one of the key recommendations from the Inquiry into Industrial Hemp Industry in Victoria and bring Victoria in line with other Australian jurisdictions, providing greater clarity and streamlining for farmers.
The proposed new legislation also provides an opportunity to update references in legislation from low THC cannabis to industrial hemp, which is a more accurate reflection of the crop and will support broader community understanding of the industry.
Consultation will also consider the need for a research licence that allows cultivation of hemp in Victoria that exceeds the 1 per cent THC threshold - supporting industrial hemp research and industry development.
This proposed legislation for industrial hemp does not relate to medicinal cannabis which is regulated separately to hemp by existing Victorian and Australian Government legislation.
The Labor Government invested $400,000 from the Victorian Budget 2025/26 for these reforms which will help lay the groundwork for a new industry that creates jobs, supports farmers, and drives regional economic growth.
The consultation is open until 3 December 2025. To have your say, visit engage.vic.gov.au/hemp
As stated by Minister for Agriculture Ros Spence
"We're looking at ways to grow Victoria's industrial hemp industry, unlock new farming potential and create new jobs in regional Victoria."
"This proposed legislation will support the use of industrial hemp in more products and create more sustainable options for housing construction materials, packaging and textiles."
