In an interview on ABC Radio on 11 July 2025, Penington Institute CEO John Ryan outlined findings from recent research, showing that legalising cannabis could contribute $10 billion to Victoria’s economy over the next decade and create around 17,000 full-time jobs.
We’ve got to acknowledge that cannabis is already a huge industry – but it’s a black market industry, and it’s lining the pockets of criminals,
According to Penington Institute, the illicit cannabis market in Victoria is worth an estimated $1.5 billion per year, much of which fuels organised crime, money laundering, and the importation of more dangerous drugs. Ryan explained that despite current laws, cannabis remains widely accessible, with over 40% of adults having used it.
We’ve asked the community what they think about regulating cannabis and 57% of the Victorian community actually support regulated cannabis. There’s net support across every age demographic and both genders.
Penington Institute reports that regulating cannabis could deliver around $316 million in annual revenue for the state – funds that could be reinvested into vital areas such mental health services. Importantly, this approach would also weaken a major source of income for criminal networks and reduce community harm.
Currently, Victoria records around 10,000 cannabis-related arrests each year, yet only an estimated 3% of the cannabis market is affected by law enforcement efforts. Ryan said it’s time to move away from outdated strategies and toward a more realistic, health-led approach.
We’re pretending we have an effective approach – but we don’t.
This interview was originally broadcast on ABC Radio Melbourne on 11 July 2025. Listen from 2:03:10 for the conversation about cannabis regulation.