This Act gives effect to certain of Australia's obligations under the Single Convention on Narcotic Drugs, 1961, as in force from time to time. The Convention, as amended by the 1972 Protocol, is set out in Schedule   1 to this Act.

A licensing and permit scheme regulates the cultivation of cannabis plants, the production of cannabis and cannabis resin, the manufacture of cannabis drugs, and activities relating to such cultivation, production and manufacture. Cultivation and production under the scheme may be undertaken for medicinal or scientific purposes whereas the manufacture of cannabis drugs may be undertaken for a permitted supply.

A separate licensing and permit scheme regulates the manufacture of narcotic drugs covered by the Convention.

Authorised inspectors have monitoring, inspection and enforcement powers under the Regulatory Powers Act to ensure this Act is being complied with. The Secretary has comprehensive powers to give directions to licence holders and former licence holders.