In the Australian state of Victoria, the Allan Government is looking at ways to make it easier for the state’s farmers to grow industrial hemp.
A licence issued by Agriculture Victoria is required to cultivate and process industrial hemp and seed for non-therapeutic purposes in the state. Agriculture Victoria is responsible for issuing these licences, the scheme for which is provided under Part IVA of the Drugs, Poisons and Controlled Substances Act 1981; even though industrial hemp by legal definition is not a drug.
Aside from the red tape and drug associations, there are a number of fees to cultivate the crop; such as a licence application of $489.90, a licence renewal fee of $155 and inspection fees of $57 per quarter-hour.
These and other hurdles for hemp in the state are reflected in the number of licenses issued. In October 2025, there were just 32 valid licenses in Victoria, and many of those were inactive. Just six licence holders grew industrial hemp in 2024–25, with one licence holder responsible for the majority of the 226 hectares planted.
To help address the situation, Victorian Minister for Agriculture Ros Spence has launched a public consultation on proposed new stand-alone legislation that would see industrial hemp no longer be directly associated with drugs and poisons laws; which would go some way to reduce stigma and clarify its legal status.
The proposed legislation doesn’t relate to medicinal cannabis — that is regulated separately to hemp by existing state and federal government legislation.
It will also provide an opportunity to update references in legislation from “low THC cannabis” to “industrial hemp”, which will better reflect the nature of the crop.
Through the consultation, Victorians are being invited to share their priorities for the industry and identify what’s working — and what isn’t.
The 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.
“We’re looking at ways to grow Victoria’s industrial hemp industry, unlock new farming potential and create new jobs in regional Victoria,” said Minister Spence. “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.”
The consultation is open until 3 December 2025 and is due to report back in early 2026.
