A leading Australian drug prevention coalition has condemned the Penington Institute cannabis legalisation report, warning it ignores health evidence and will worsen public harms.

The Melbourne-based policy organisation released its July 2025 cost-benefit analysis proposing a regulated cannabis market similar to alcohol and tobacco. According to critics, however, this model sacrifices health protections in pursuit of revenue.

Drug Free Australia (DFA), together with the Australian Taskforce for Drug Prevention, has issued a formal response challenging the Penington Institute cannabis legalisation proposals. Gary Christian of DFA argued that the Institute’s approach “does everything to degrade public health,” likening it to a heart health charity pushing for relaxed tobacco controls despite overwhelming evidence of harm.

Ignoring Medical Evidence

The response highlights what it calls a fundamental flaw: the report excludes recent medical evidence linking cannabis to serious illness. Between 2021 and 2024, nearly 60 peer-reviewed population studies identified cannabis as causal in 33 cancers, double the number caused by tobacco. In the United States, researchers now estimate cannabis generates a heavier medical burden than tobacco.

Health costs from cancer alone, the Taskforce claims, would erase any tax revenue raised from cannabis legalisation in Australia. In 2015/16, cancers accounted for 43% of Australia’s smoking-related costs, totalling $59 billion. Rising cannabis consumption, which legalisation inevitably accelerates, would significantly increase these costs.

The response also notes other documented risks, including psychosis, depression, suicide, violence, birth defects and childhood cancers. While the Penington Institute report points to job creation in health and social sectors, experts argue these jobs stem from treating preventable harms rather than generating genuine social benefit.

Black Market Expansion

The report’s claim that legalisation would end the black market also faces scrutiny. Evidence from US states such as Colorado and California shows the opposite, with illicit cultivation thriving alongside legal sales. High regulatory costs and cheaper untaxed products ensure illegal suppliers remain competitive. In fact, the Taskforce points out that California’s black market is now larger than its regulated industry.

Calls for Transparency

Drug Free Australia has also questioned whether the Penington Institute maintains financial independence from the cannabis industry. The organisation has challenged the Institute to open its accounts publicly to demonstrate no industry funding has influenced its stance on cannabis legalisation in Australia.

A Risky Proposal

Critics argue that the Penington Institute cannabis legalisation proposal ignores decades of evidence showing the dangers of cannabis. They warn that legalisation would not reduce harms but instead embed them further into Australian society. The Taskforce’s detailed rebuttal strongly recommends rejecting the Institute’s assumptions and prioritising health over revenue.

Source: Drug Free Australia