Media Release: Cannabis use costs Australia $4.5 billion

The use of cannabis is costing Australia $4.5 billion a year, according to a new report released today.

Involving expertise from around Australia and published by the National Drug Research Institute (NDRI) at Curtin University in Perth, the first national estimate of the social and economic costs of cannabis use in 13 years shows that, in the 2015-2016 financial year, cannabis use was responsible for:

• $4.4 billion in direct tangible costs, including crime and criminal justice, hospital and other healthcare costs, reduced productivity and worker absence, and road traffic accidents; and
• A further $100 million in intangible costs due to the premature death of 23 people, mostly through cannabis-related road traffic accidents, which resulted in more than 850 years of life lost.

Crime, health care, and workplace costs accounted for more than three quarters of the estimate.

The national research team was led by NDRI, and included experts from the South Australian Centre for Economic Studies at the University of Adelaide; the National Drug and Alcohol Research Centre (NDARC), UNSW; the NSW Bureau of Crime Statistics and Research; the National Centre for Education and Training on Addiction (NCETA) at Flinders University; the National Centre for Youth Substance Use Research at the University of Queensland; and Curtin University’s School of Public Health.

NDRI’s Professor Steve Allsop said more than 2 million Australians had used cannabis in the 12 month period investigated, with about 150,000 people meeting the criteria for dependence on the drug.

“When there are adverse outcomes of cannabis use this can require the use of health services or result in contact with the criminal justice system,” he said.

“Cannabis-related problems can increase demand across the healthcare system, from community mental health programs to hospital inpatient treatment, costing more than $700 million.

“The estimated cost of crime resulting from cannabis use amounts to $2.4 billion, accounting for more than half the total, with the majority due to imprisonment and policing costs.”

NCETA’s Professor Ann Roche said that the cost of worker absence and reduced productivity due to cannabis use was estimated at $560 million.

“There are likely to be further costs in reduced productivity, when people go to work affected by cannabis, but quantifying this reduced performance needs further research.”

NDARC's Professor Louisa Degenhardt added: “The link between cannabis use and schizophrenia remains controversial and subject to debate; nonetheless, those who are admitted with psychosis where cannabis is mentioned comprise the most costly cannabis-related hospital admissions.”

The research report, Quantifying the Social Costs of Cannabis Use to Australia in 2015/16, and an infographic snapshot of key findings, are available at ndri.curtin.edu.au. This is the fourth report on the social and economic costs of substance use in Australia: the first report focussed on methamphetamine, the second on tobacco, and the third on opioids.

Further Information:

An infographic summary What does cannabis use cost Australia? is available below and in the following formats: PDF, JPG and PNG.

The research report Quantifying the Social Costs of Cannabis Use to Australia in 2015/16 is available here.

Contact:

Spokespeople

Professor Steve Allsop, National Drug Research Institute, Curtin University, Perth
(Study enquires)
Mobile: 0407 967 964
Email: s.allsop@curtin.edu.au

Steve Whetton, South Australian Centre for Economic Studies, University of Adelaide
(Economic questions)
Mobile: 0432 350 232
Email: steve.whetton@adelaide.edu.au

Professor Ann Roche, National Centre for Education & Training on Addiction, Flinders University
(Workplace implications)
Mobile: 0421 140 983
Email: ann.roche@flinders.edu.au

Professor Louisa Degenhardt, National Drug & Alcohol Research Centre, UNSW
(Morbidity and mortality)
Mobile: Contact Jacob Webb 0401 713 850
Email: l.degenhardt@unsw.edu.au

Media relations

Vic Rechichi, National Drug Research Institute, Curtin University, Perth
Mobile: 0414 682 055
Email: ndri@curtin.edu.au

Elisa Black, SA Centre for Economic Studies, University of Adelaide, Adelaide
Mobile: 0466 460 959
Email: elisa.black@adelaide.edu.au

Tania Bawden, National Centre for Education & Training on Addiction, Flinders University
Mobile: 0434 101 516
Email: tania.bawden@flinders.edu.au

Jacob Webb, National Drug & Alcohol Research Centre, University of New South Wales, Sydney
Mobile: 0401 713 850
Email: jacob.webb@unsw.edu.au

Infographic:

---

Posted on: 5 Aug 2020

news list