NSW Department of Primary Industries and Regional Development

NSW Hemp Industry

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NSW Hemp Industry Development Plan

The Minister for Agriculture has released the NSW Hemp Industry Development Plan.

View the Hemp Industry Development Plan (PDF, 1153.71 KB).

The Plan is built on crop research and development, identifying market and supply chain needs, and providing legislative and policy frameworks to support the growth of the NSW hemp industry.

Public consultation on the draft NSW Hemp Industry Development Plan

Public consultation on the draft plan occurred between 16 April 2025 and 19 May 2025. The consultation period provided the opportunity for stakeholders to indicate their level of support for the strategic direction and focus of the plan.

A total of 118 responses were received from a wide range of stakeholders – including consumers (52%), former and current members of the industrial hemp industry and supply chain (13%), industry representatives and peak bodies (7%), research sector (4%), and other members of the public (24%).

Hemp Industry Taskforce

The NSW Hemp Industry Taskforce has been reconvened to monitor delivery of the plan and report on its progress. The taskforce will meet quarterly during 2026 to discuss regulations, industry priorities and engagement opportunities.

If you have a question regarding the Taskforce, please email agri.policy@dpi.nsw.gov.au

Hemp Industry Act 2008​

The Hemp Industry Act 2008 (the Act) authorises and regulates the cultivation and supply of low-THC hemp for commercial production and other legitimate uses.

In July 2023, amendments were made to the Hemp Industry Act 2008 (the Act).

These amendments are designed to make the legislation clearer and increase industry confidence to access licences for the cultivation or supply of low-tetrahydrocannabinol (THC) hemp under the Act.

Find out more about the amendments

Growing low-THC hemp in NSW

Low-THC hemp has been around for many years and has a wide range of uses. Low-THC hemp has the added advantage of being considered a 'green', environmentally friendly crop, as it requires less irrigation water and use of agricultural chemicals than other fibre crops.

Hemp cannot be grown (commercially or for research) in NSW without a licence issued by the Department. The licensing scheme allows commercial production of low-THC hemp, as well as facilitating the development of an industry in processing, manufacturing, and marketing in NSW:

  • Licences allow activities to be carried out under specific conditions. These activities include commercial production, research into the alternate uses of low-THC hemp, and plant breeding programs to develop new or improved strains of low-THC hemp.
  • Licence conditions mean production can take place without risk to drug law enforcement. These conditions include strict eligibility and suitability requirements for licence applicants.

A licenced business must comply with certain conditions, including complying with the Hemp Industry New South Wales Licence Manual ( PDF, 1137.52 KB). This manual outlines requirements relating to:

  • licensing and permitted activities
  • planting notifications
  • sampling
  • reporting and documentation (Hemp licence register).

Before undertaking production of a hemp-based product, it is important to seek further information to ensure that your proposed activities and products are compliant with New South Wales and Commonwealth law. It is also advisable to seek independent legal advice.

In some areas, development consent is required for irrigated crops under the Environmental Planning and Assessment Act 1979. For more information, please contact your local council.

Products that can and cannot be produced under a DPIRD low-THC hemp licence

It can be unclear which low-THC hemp products can lawfully be produced. The following sections outline the types of non-food and food products that can be produced and products that cannot be produced under a DPIRD low-THC hemp licence.

Non-food products that can be produced

The following list of products are examples of those that can lawfully be produced. However, there are restrictions, and there may be additional products not included in the list below:

  • Oil: paint, varnishes, ink, solvents, fuels, pet food or other oils made from hemp seed.
  • Fibre: paper, rope, canvas, carpet backing, geotextiles, clothing, building and construction material (e.g. cement blocks, stucco and mortar), mulch, compost and animal bedding
  • Resin: resins, glues, adhesives, putty, gels, lubricants or products with clear industrial use.
  • Other products: soaps, shampoo, cleaning products, cosmetics or creams.

Note: there are restrictions in place limiting the maximum concentration of THC to 50 mg/kg in any of these products. None of these products can be for internal human use and/or the labels must advise the user that they cannot be taken (i.e. consumed). These products must not promote, advertise, claim or infer any medicinal, psychoactive or therapeutic benefits.

Food products that can be produced

Hemp seed can be used in food products under the Food Standards Code of Australia and New Zealand:

Seeds must:

  • be non-viable (cannot be grown into a plant) and hulled
  • have THC concentrations of not more than 5 mg/kg
  • have cannabidiol (CBD) concentrations not greater than 75 mg/kg
  • only have other cannabinoids that are naturally present

There are specific requirements for different food products.

1. Oil

  • Extracted from seeds only.
  • THC – not more than 10 mg/kg of total THC
  • CBD – not greater than 75 mg/kg
  • Other cannabinoids are only permitted if naturally present

2. Beverages

  • Derived from seeds.
  • THC – not more than 0.2 mg/kg of total THC
  • CBD – not greater than 75 mg/kg
  • Other cannabinoids are only permitted if naturally present

3. Any other low-THC hemp food product

  • Derived from seeds.
  • THC – not more than 5 mg/kg of total THC
  • CBD – not greater than 75 mg/kg
  • Other cannabinoids are only permitted if naturally present

Products that CANNOT be produced

The following list of products are examples of those that cannot be lawfully produced:

  • Medicines, tinctures, herbal remedies, naturopathic remedies or any product where a therapeutic claim or remedy is stated or implied.

These types of products are regulated by the Commonwealth Office of Drug Control and the Therapeutic Goods Administration, not by NSW Government. To find out further information about producing these types of products, please contact the Office of Drug Control or Therapeutic Goods Administration.

  • Extractions in oils, alcohols or other liquids that contain THC levels higher than 50 mg/kg.
  • Dronabinol – a generic name for the molecule of delta-9-tetrahydrocannabinol in the pharmaceutical context/products.

New licence applications

To apply for a licence, complete the application form below, using the guidelines for assistance. An application can take up to four months to be completed, depending on the complexity and time taken to secure relevant documents and checks.

Changes to an existing licence

To request changes to your existing licence, please complete the application form below:

Compliance audits in the hemp industry

To ensure all licence holders under the Hemp Industry Act 2008 meet their requirements with the Act and Regulation, the Department has implemented a risk-based compliance audit program.

The audit program allows the Department to monitor compliance and take graduated and proportional measures to address non-compliance, without placing new or excessive burden on licencees. Having a structured audit and compliance program also assures the industry that a robust system is in place to maintain the integrity of the industry, which is consistently applied, and is risk based.

To verify that the requirements are being met, the Department carries out regular audits of licenced operators. The audit includes an on-site visit that assesses that:

  1. The business is conducting activities permitted on the certificate of licence
  2. The business is adhering to the licence conditions
  3. Licence register is being maintained and filled out accurately and correctly
  4. Employee’s details are current and correct
  5. Action taken to address previous issues or audit items.

The auditor provides a report to the licenced operator, which outlines the operations that have been assessed, and identifies areas not fully compliant that need corrective action. If critical non-compliance is identified during the audit, the audit is rated as unacceptable (PDF, 104.15 KB), and enforcement action may be taken.

For further detail regarding the audit and audit process, please refer to the audit guidance fact sheet (PDF, 140.97 KB).

Crop failure

If a crop is unsuccessful/fails, notification of crop failure must be emailed to bfs.admin@dpird.nsw.gov.au as soon as failure is determined with a copy of the relevant part of the register relating to disposal or destruction of plants. The failure and disposal of material must be reflected in the licence register and the annual report.

Unauthorised activity

Licensees must notify the Department if they become aware of any unauthorised activity or proposed unauthorised activity by a licensee, Close Associate or person involved in the cultivation and/or supply of hemp. The specific circumstances of the notification will be considered by the Department and may result in further investigation or action by the Department.

Criminal convictions

Licensees must notify the Department if they become aware of any criminal convictions of a licensee, Close Associate or person involved in the cultivation and/or supply of hemp. The specific circumstances of the notification will be considered by the Department and may result in further investigation or action by the Department. It is important that any criminal convictions of drug-related offences are notified to the Department as soon as they are known by the licensee.

Non-compliant test results

A licence holder must notify the Department and provide the results of a test that exceeds 1% THC (in the leaves and flowering heads of hemp cultivated by the licensee) within 24 hours of receiving the results. Notifications are to be emailed to bfs.admin@dpird.nsw.gov.au.

Commonly used forms

For more information

Contact Biosecurity & Food Safety Licensing & Accreditation Services for more information on the licensing arrangement in NSW:

Postal  Address: PO Box 232, Taree NSW 2430

Phone: 1800 680 244

Email: bfs.admin@dpird.nsw.gov.au

For general information about the hemp industry in NSW, please call us on 1800 680 244 or email agri.policy@dpird.nsw.gov.au

www.dpi.nsw.gov.au