The ODC may issue an infringement notice (fine) when we believe that an offence against the Narcotic Drugs Act 1967 (the Narcotic Drugs Act) has occurred.
The following information explains the basis for infringement notices, how the amount of those notices is calculated, and the ODC’s broad approach to using them.
When and why the ODC may issue an infringement notice
The ODC uses a suite of compliance tools, reserving the strongest actions (such as criminal prosecution) for the most concerning or high-risk instances of non-compliance.
Court action is a lengthy and expensive process for all parties and it may not be practical or appropriate to deal with particular alleged offences. The ODC may instead choose to issue an infringement notice. An infringement notice allows the ODC to impose an immediate penalty in certain matters. This sends a clear and timely message that there are consequences for significant non-compliance. As the ODC publishes details of the infringement notices it issues, this serves as a general deterrent to other regulated persons.
We only issue an infringement notice if we hold enough evidence to successfully pursue the matter in court if the infringement notice is not paid. An infringement notice must be issued within 12 months of when the breach is alleged to have occurred.
What the ODC may issue an infringement notice for
The ODC has legal authority to issue infringement notices in relation to alleged offences against the Act. Offences we can issue infringement notices for may include:
- unauthorised cultivation, production or manufacture of cannabis or narcotic drugs, or breach of associate licence conditions
- obstructing, or failing to provide reasonable facilities and assistance for inspectors undertaking their duties
- failing to give information or documents to the Secretary when required
- failing to comply with a direction
- failing to keep records and provide reports.
Depending on the circumstances, the recipient of an infringement notice may have already received a warning from the ODC for a similar alleged breach. However, issuing a warning is discretionary, and so is not required before an infringement notice can be issued.
An infringement notice can be issued for the act of committing the offence, regardless of the licence holder’s intention, recklessness or negligence.
Infringement notices may also be used in conjunction with other compliance tools (such as issuing directions) where necessary.
Amount of the infringement notice
The ODC does not have discretion to set the amount payable for an infringement notice (the penalty). Penalties under Commonwealth legislation are expressed as ‘penalty units’ (as defined in the Crimes Act 1914 (the Crimes Act). A penalty amount (total fine) is determined by multiplying the number of penalty units for an offence by the value of a penalty unit. Penalties are larger for body corporates than for individuals.
The maximum civil penalty a court can impose under the Narcotic Drugs Act is:
- 60 penalty units for an individual
- 1000 penalty units for a body corporate.
The value of a penalty unit is dependent on when the offence is alleged to have been committed. From 1 July 2023, the value of a penalty unit in Commonwealth legislation is subject to indexation under section 4AA of the Crimes Act. This increase impacts the maximum civil penalty that can be imposed by a court for a contravention, and the amount payable for infringement notices.
This table helps to explain how the amount of an infringement notice is calculated, for example for a breach of a condition of a medicinal cannabis licence relating to cultivation.
|
Individual |
Body corporate |
Maximum civil penalty a court can impose |
60 penalty units |
1000 penalty units |
(a) One-fifth of the maximum penalty |
12 penalty units |
200 penalty units |
(b) penalty units specified in provision |
12 penalty units |
60 penalty units |
The Infringement notice is the lesser of (a) and (b): |
12 penalty units |
60 penalty units |
- Alleged offence date on or after 1 July 2023 Amount of the infringement notice = penalty units x $313 |
$3,756 | $18,780 |
- Alleged offence date between 1 January 2023 and 30th June 2023 |
$3,300 | $16,500 |
- Alleged offence date on or before 31st December 2022 Amount of the infringement notice = penalty units x $222 |
$2,664 | $13,320 |
An infringement notice can combine multiple amounts where more than one alleged contravention occurred if they are contraventions of a single provision over a period. Authority for this comes from subsection 104(3) of the Regulatory Powers Act, as applied by the Narcotic Drugs Act.
Multiple infringement notices can be issued
Generally, we will issue one infringement notice that addresses various offence instances, where the offences are the same or similar. However, where the ODC believes multiple distinct offences have been committed, we can issue an infringement notice for each alleged offence.
For example, the ODC may choose to issue multiple infringement notices where the licence holder has breached various conditions of its licence (involving significant security issues, cultivating/manufacturing in excess of the maximum quantities in its permits, and failing to operate in line with its standard operating procedures), but may issue just one infringement notice where the licence holder has had security issues on several separate occasions.
In some cases, the ODC may suspect there have been numerous breaches of the Act. However, it is not always appropriate and proportionate to issue an infringement notice for every alleged breach.
Information included in the infringement notice
An infringement notice will contain the following information:
- a unique identifying number for the notice, and the date it is given
- details of the person being given the infringement notice
- details of the person giving the notice (the infringement officer)
- brief details of the alleged breach, including the provision that was allegedly breached and the date and time (if known) of the alleged breach
- the amount payable under the notice, how payment is to be made, and the due date for payment (28 days after the day on which the infringement notice is issued).
The notice also states that:
- if the amount is paid within the timeframe given, that for the alleged contravention, the person will not be liable to be prosecuted in a court; and pecuniary penalties will not be brought (depending on the contravention)
- payment of the amount is not an admission of guilt or liability
- the person may apply to have the time frame to pay the notice extended
- the person may choose not to pay the amount, and if not, the person may instead be prosecuted in a court; or pecuniary penalties may be brought (depending on the contravention)
- the notice can be withdrawn, including details of the effect of a withdrawn notice, and how the person may seek withdrawal of the notice.
Options available to recipients of infringement notices
The ODC cannot compel the recipient of an infringement notice to pay the notice. Although the decision to issue an infringement notice is not subject to merits review, the recipient can apply to have the notice withdrawn. The recipient of the infringement notice has the following options.
Pay the infringement notice
Paying the infringement notice in full by the due date discharges the recipient's liability. It prevents court action in relation to the particular instance specified in the infringement notice. Payment is not an admission of liability. Paying the infringement notice but failing to address the non-compliant activities may result in escalating compliance action in relation to ongoing non-compliance.
Request an extension of time to pay
The ODC will consider a request to extend the time to pay but is not obliged to agree to an extension. Where an extension is refused less than a week before the original due date, the recipient will have 7 calendar days from the date of the decision to pay the notice. Once paid in full by the due date (as extended if applicable), the recipient's liability is discharged as described above.
Request the withdrawal of the infringement notice
The recipient of an infringement notice may make written representations seeking the withdrawal of the notice. The request should set out the reasons why the recipient considers that the infringement notice should be withdrawn. It should include supporting information as appropriate.
The ODC will notify the recipient in writing of the outcome of the request. The ODC must take written representations into account and may also take into account certain other matters. If the infringement notice is withdrawn but the ODC considers that the recipient is liable for the breach, the ODC may still pursue court action.
The ODC may also withdraw an infringement notice of its own volition.
Do not pay infringement notice
If an infringement notice is not paid, the ODC will usually take the recipient of the notice to court. This can involve either referring the matter to the Commonwealth Director of Public Prosecutions for criminal prosecution or commencing civil penalty proceedings. Failure to pay an infringement may impact the ability to maintain a licence or permit.
Publication of infringement notices
The ODC publishes information about infringement notices it issues. The publication of the information helps deter other entities from engaging in non-compliance with the Act. The ODC also issues media releases to accompany publication of an infringement notice.
Information published about infringement notices generally includes:
- the name of the licence holder (unless an individual)
- the number and total value of the infringement notice/s issued
- the alleged breaches that resulted in the infringement notice/s.