THA Submission to the Senate Enquiry

• Development of a National Hemp Strategy to coordinate policy, regulation, legislation and market development.
• Greater investment in R&D and processing infrastructure, including regional hubs.
• Streamlining and harmonising regulations and legislation across states and territories aligned with global benchmarks.
• Establishing training and education, skills, and workforce development pipelines to ensure industry capability, productivity and sustainability.
• Supporting Australian hemp branding as an environmentally sustainable export industry.

2. Organisational Background

The Tasmanian Hemp Association (THA) Inc1 is the sole peak body representing licensed industrial hemp growers, processors, value-added businesses and interested members of the community in our state. The THA is one of the oldest and largest industry groups of its type in the country.

To our knowledge, we are the only state or national association to have received multiple rounds of both State and Federal Government grant funding to support operations. These modest financial contributions have allowed us to have paid staff supporting our nine-person volunteer Board. Collectively, we work on behalf of hundreds of members with one voice, advocating for a strong, sustainable, and innovative hemp sector in Tasmania and across Australia.

While the association is not currently aligned with either of the two national bodies representing various stakeholders in the sector – the Australian Hemp Council (AHC) and the Australian Industrial Hemp Alliance (AIHA) – we previously worked closely with the AHC as a founding member, and regularly engage with various research institutions, and government bodies such as AgriFutures.

Our association represents a broad range of members, which includes growers from small family farms; virtually all hemp start-ups and small businesses working actively in the sector in Tasmania; larger enterprises that are either directly engaged with or have a strong interest in promoting product development with hemp fibre and food, and many hundreds of non-voting Supporter Members from the community.

3. Response to Inquiry Terms of Reference

3.1 Economic Opportunities

Industrial hemp presents a significant opportunity for economic diversification in regional Australia. Hemp can be used in food (seeds, oils, protein), fibre (textiles, composites), construction (hempcrete, insulation), cosmetics, bioplastics, and animal feeds.

Early modelling suggests that Australia could grow a $1 billion hemp industry within the next decade if infrastructure, research, and markets are supported. Tasmania already produces hemp for food-grade seed and construction, and there is strong interest in expanding into sustainable fibre and construction-grade products and marine based products.

3.2 Regulatory and Policy Barriers

The regulatory environment remains fragmented with each state and territory maintaining separate licensing frameworks and legislation with differing requirements and costs.

A nationally consistent regulatory framework is essential, including mutual recognition of licenses, simplified compliance pathways including opportunities for self-regulation, legislative reform and alignment with export market standards.

While THC limits are not harmonised with international standards (Australia maintains a strict 1% threshold, while the EU and Canada have adopted the even more conservative 0.3% or 0.2%), this inconsistency may create additional compliance burdens and reduce competitiveness. It should be noted that having a slightly higher threshold offers an advantage in the range of genetics available for our farmers to grow and reduces risk of unnecessary crop destruction in the case of a “hot crop” testing over 0.3% and the THA is in full support of this common sense aspect to our legislation in Australia.

3.3 Research, Development & Innovation

There is a significant opportunity for Australia to deliver leading edge research and innovation to benefit Australia’s agricultural systems. Australian universities and research centres are well placed to drive innovation in hemp genetics, agronomy, and processing.

Tasmania has already partnered with UTAS on research trials, while the CSIRO has demonstrated interest in hemp for bioplastics. There is an urgent need for investment in plant breeding programs, seed certification, fibre decortication, and secondary processing capacity. Unfortunately, the lack of a truly collaborative, professional and holistic approach within the state and national peak industry groups has led to unnecessary duplication of research and market confusion in multiple cases. A dedicated Cooperative Research Centre (CRC) for hemp could provide national leadership in this area.

3.4 Environmental and Social Benefits

Hemp offers significant environmental benefits including rapid growth, carbon sequestration, low pesticide requirements, and potential use in soil remediation. It can replace plastics, cotton (with lower water use), and unsustainable building materials.

Socially, hemp farming can provide new opportunities for regional employment and has strong potential for Indigenous enterprise development.