Industrial hemp is cannabis that has been bred to contain very little THC, the compound that causes a high. In Australia it is grown under state and territory law, mainly for seed and fibre. It is not a legal source of over-the-counter CBD.
What counts as industrial hemp?
Hemp and marijuana are the same plant species. The legal difference is the amount of THC in the crop. Each state or territory with a hemp law sets a maximum THC level, measured in the leaves and flowering heads.
For how the plant, its varieties and its compounds fit together, see the cannabis plant.
What are the THC limits in each state and territory?
As of November 2026, every jurisdiction we could confirm from its own legislation sets the crop limit at 1 per cent THC.
| Jurisdiction | Law | Crop THC limit | Notes |
|---|---|---|---|
| Queensland | Drugs Misuse Act 1986, Part 5B | 1% | Seed used for planting must come from plants at 0.5% or less1 |
| Victoria | Drugs, Poisons and Controlled Substances Act 1981, Part IVA | 1% | Raised to 1% on 1 January 20232 |
| South Australia | Industrial Hemp Act 2017 | 1% | Unchanged since 20173 |
| Western Australia | Industrial Hemp Act 2004 | 1% | Raised from 0.35% on 22 September 20184 |
| Tasmania | Industrial Hemp Act 2015 | 1% | A 2024 amendment left the limit unchanged5 |
| Northern Territory | Hemp Industry Act 2019 | 1% | Commenced 6 May 20206 |
| ACT | Hemp Fibre Industry Facilitation Act 2004 | Repealed | Repealed 27 May 2025. No licence was ever sought7 |
| New South Wales | Hemp Industry Act 2008 | Not confirmed | We could not open the NSW sources to confirm the current limit |
Each of these laws is a licensing scheme, so the limit applies to licensed growers. The rules and the application process differ between jurisdictions, and each state or territory government publishes its own.
Why does “0.3 per cent THC” keep coming up?
Overseas sellers often say a CBD product is legal because it comes from hemp with less than 0.3 per cent THC. That is a rule from other countries. It has no force in Australia.
Here, the legal class of a product depends on the Poisons Standard, not on the crop it came from. Any preparation with more than 75 mg/kg of CBD sits in the medicine schedules, and CBD for therapeutic use is a prescription medicine.8 See is CBD legal in Australia?
What can industrial hemp be used for?
Food. Since 12 November 2017, foods made from low-THC hemp seed can be sold in Australia, within set limits for THC and CBD.9 See hemp foods in Australia.
Fibre and other industrial uses. The Senate inquiry described below looked at how the wider hemp industry could grow.
Not CBD. The Office of Drug Control (ODC), the federal regulator for cannabis, is direct on this: “Only the seeds of the hemp plant can be used for human consumption - extracts from the remainder of the plant are considered a drug.”10 It describes “hemp oil” as “an extract of a plant in the genus Cannabis” that “usually contains THC and CBD in excess of the threshold amounts”.10
Medicinal cannabis, including CBD made into medicines, runs under a separate federal licence and permit system administered by the ODC. There were 73 ODC licence holders at 31 March 2026.11
Can hemp seed oil cross the border freely?
Not quite. The ODC’s import approval for hemp seed oil allows up to 50 mg/kg of THC. The Poisons Standard and the Food Standards Code allow only 10 mg/kg.108 A shipment can therefore pass the border test and still breach poisons or food law once it is here.
What did the 2026 Senate inquiry recommend?
The Senate Rural and Regional Affairs and Transport References Committee ran an inquiry called “Opportunities for the development of a hemp industry in Australia”. It reported on 30 July 2026 with 14 recommendations. One asked the government to consider the implications of a single national definition of hemp as cannabis with less than 1 per cent total THC.12
As of November 2026, we found no government response to the report. A recommendation is not a change in the law.
What is happening in Victoria?
Victoria regulates hemp inside its main drugs Act. The state government consulted on stand-alone hemp legislation from 5 November to 3 December 2025.13 A private member’s bill, the Hemp Industry Bill 2024, lapsed on 3 November 2026.14 No new Victorian hemp Act had passed as of November 2026.
Does a legal hemp industry mean CBD will become easier to buy?
Not on its own. Hemp laws govern farming. Access to CBD is governed by the Poisons Standard and the Therapeutic Goods Administration (TGA).
Low-dose CBD has been eligible for pharmacist-only sale since 2021, but only for products the TGA has registered, and as of November 2026 none has been.15 The TGA has said future reform options “may include a review of the current scheduling of cannabis, CBD and THC”. We found no decision on that as of November 2026.16
See can you buy CBD over the counter in Australia? and cannabis legalisation in Australia.
Footnotes
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Queensland. Drugs Misuse Act 1986, Part 5B. https://www.legislation.qld.gov.au/view/whole/html/inforce/current/act-1986-036 ↩
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Victoria. Drugs, Poisons and Controlled Substances Act 1981, Part IVA. https://content.legislation.vic.gov.au/sites/default/files/2026-11/81-9719a147.docx ↩
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South Australia. Industrial Hemp Act 2017. https://www.legislation.sa.gov.au/_legislation-documents/lz/c/a/industrial-hemp-act-2017/current/2017.15.auth.pdf ↩
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Western Australia. Industrial Hemp Act 2004. https://www.legislation.wa.gov.au/legislation/statutes.nsf/law_a7012.html ↩
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Tasmania. Industrial Hemp Amendment Act 2024. https://www.legislation.tas.gov.au/view/whole/html/asmade/act-2024-022 ↩
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Northern Territory. Hemp Industry Act 2019. https://legislation.nt.gov.au/en/Legislation/HEMP-INDUSTRY-ACT-2019 ↩
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ACT. Hemp Fibre Industry Facilitation Act 2004 (repealed). https://www.legislation.act.gov.au/a/2004-48/ ↩
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Australian Government. Therapeutic Goods (Poisons Standard, October 2026) Instrument 2026. https://www.legislation.gov.au/F2026L01327/asmade/2026-09-30/text/original/pdf ↩ ↩2
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Australia New Zealand Food Standards Code, Standard 1.4.4 (compilation in force 12 November 2017). https://www.legislation.gov.au/F2015L00416/2017-11-12/2017-11-12/text/original/epub/OEBPS/document_1/document_1.html ↩
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Office of Drug Control. Information on hemp products, hemp oil and hemp seed oil. https://www.odc.gov.au/node/1372 ↩ ↩2 ↩3
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Office of Drug Control. Cost recovery implementation statement: regulation of medicinal cannabis 2026-27. https://www.odc.gov.au/sites/default/files/2026-07/cost-recovery-implementation-statement-regulation-of-medicinal-cannabis-2026-27.pdf ↩
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Senate Rural and Regional Affairs and Transport References Committee. Opportunities for the development of a hemp industry in Australia, report, 30 July 2026. https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Rural_and_Regional_Affairs_and_Transport/Hempindustry_48/Report ↩
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Premier of Victoria. A new era for industrial hemp in Victoria. https://www.premier.vic.gov.au/new-era-industrial-hemp-victoria ↩
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Victorian Legislation. Hemp Industry Bill 2024. https://www.legislation.vic.gov.au/bills/hemp-industry-bill-2024 ↩
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Therapeutic Goods Administration. Consultation paper: Reviewing the safety and regulatory oversight of unapproved medicinal cannabis products, August 2025. https://consultations.tga.gov.au/medicines-regulation-division/test-soms/user_uploads/final---consultation-paper---medicinal-cannabis-review---august-2025.pdf ↩
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Therapeutic Goods Administration. Document released under FOI 26-2886, 2026. https://www.tga.gov.au/sites/default/files/2026-06/FOI%2026-2886.PDF ↩
Common questions
Is it legal to grow hemp in Australia?
Yes, under a state or territory licensing law. Six jurisdictions set a crop limit of 1 per cent THC in the leaves and flowering heads. The ACT repealed its hemp law in May 2025.
What is the difference between hemp and marijuana?
Both are the cannabis plant. Hemp is the legal term for varieties grown under licence with very little THC, the compound that causes a high. In the Australian jurisdictions we could confirm, the limit is 1 per cent THC in the leaves and flowering heads.
Can I extract CBD from hemp I grow?
Not under a hemp licence. The Office of Drug Control says only the seeds of the hemp plant can be used for human consumption and that extracts from the rest of the plant are considered a drug. CBD is a prescription medicine in Australia, and medicinal cannabis is licensed separately at the federal level.
Why do overseas sellers say under 0.3 per cent THC is legal?
That figure comes from other countries' hemp laws. In Australia the legal class of a CBD product depends on the Poisons Standard, not on the THC percentage of the crop. Any product with more than 75 mg of CBD per kilogram is at least a prescription medicine here.
This page is general information, not medical or legal advice. Laws and evidence change; we show the date we last checked the facts at the top of every page. Talk to your doctor or pharmacist before starting, stopping or changing any medicine.
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