Quick Answer: Terpenes that are not derived from cannabis are legal to buy and sell in Australia. Botanical terpenes from non-cannabis sources can be purchased freely, while cannabis-derived terpenes are strictly regulated as medicinal cannabis products requiring compliance with TGO 93 standards and appropriate licensing.
Key Takeaways
- Botanical terpenes from non-cannabis sources are legal to buy in Australia; cannabis-derived terpenes are regulated as medicinal cannabis and require TGO 93 compliance.
- Australia’s 2016 medicinal framework governs cultivation and supply; hemp THC thresholds vary by state, and access often uses TGA Special Access Scheme or Authorised Prescriber pathways.
- TGO 93 mandates GMP manufacturing, identity and purity testing, contaminant limits, full disclosure, and bans synthetic cannabinoids; COAs and validated GC-MS methods are standard.
- Imports differ by source: botanical terpenes use normal channels; cannabis-derived terpenes need ODC permits, TGA approvals, licensed sponsors, and supporting stability and quality documentation.
- States vary: NSW up to 1% THC for hemp, Victoria 0.35% with 2025 driving reform discretion, Queensland streamlined prescribing, WA and SA follow standard industrial hemp acts.
- Ready to supply compliant terpenes to Australia? Contact Terpene Belt Farms to source premium cannabis-derived terpenes with TGO 93 documentation and licensed import pathways.
Australia’s medicinal cannabis framework has taken some major turns since federal legalization in 2016, creating a complex regulatory environment for terpene procurement and product development.
With the Australian legal cannabis market projected to reach $815.1 million by 2033, growing at a 20.3% annual rate, product developers face strict compliance requirements when sourcing terpenes for their formulations.
The distinction between botanical and cannabis-derived terpenes creates critical regulatory implications that directly impact procurement strategies, quality requirements, and market access pathways. If you’re looking to invest in terpenes for your product lineup, there are a few key considerations to keep in mind.
Cannabis and Hemp Regulations for Australia
Australia’s approach to cannabis regulation reflects a careful balance between medical access and strict control measures. The Narcotic Drugs Amendment Act 2016 established the federal framework for medicinal cannabis cultivation and production, creating a national licensing scheme administered by the Office of Drug Control (ODC).
This legislation permits cannabis cultivation for medicinal and scientific purposes despite the prohibition on recreational use.
The regulatory distinction between hemp and cannabis hinges on THC content. Industrial hemp, defined as Cannabis sativa L with less than 1% THC in the leaves and flowering heads (in most states apart from Victoria, where the limit is 0.35%), is affected by separate state-based frameworks.
Hemp cultivation requires state-issued licenses, with each jurisdiction maintaining its own Industrial Hemp Act governing cultivation, processing, and possession for non-therapeutic purposes.
The Therapeutic Goods Administration (TGA) is the primary regulator for medicinal cannabis products. Most of these products, including those containing cannabis-derived terpenes, are classified as unapproved therapeutic goods requiring special access pathways.
The Special Access Scheme (SAS) and Authorised Prescriber (AP) schemes provide mechanisms for patient access while maintaining strict oversight of quality and safety.
The distinction between hemp products and other cannabis derivatives creates important implications for terpene sourcing. According to the Office of Drug Control, only hemp seeds can be used for human consumption without therapeutic goods approval.
Extracts from other parts of the hemp plant, including terpene-rich components, are considered drugs that require appropriate regulatory approval.
State and Territory Regulations
While federal law establishes the overarching cannabis framework, states and territories maintain authority over industrial hemp cultivation and certain aspects of medicinal cannabis access. These variations create a patchwork of regulations that affect terpene sourcing and product development strategies.
New South Wales
NSW operates under the Hemp Industry Act 2008, permitting industrial hemp cultivation with THC limits up to 1% for human consumption purposes. The state has relatively progressive laws for medicinal cannabis, with any registered medical practitioner able to prescribe through appropriate TGA pathways.
This creates favorable conditions for terpene-infused product development, though driving with any detectable THC remains strictly prohibited.
Victoria
Victoria maintains stricter hemp regulations with a 0.35% THC threshold under its industrial hemp regulations. The state recently passed groundbreaking legislation through the Roads and Road Safety Legislation Amendment Bill 2024, providing magistrates with discretion in cases where prescribed medicinal cannabis patients test positive for THC without impairment.
This reform, having taken effect in mid-2025, signals growing acceptance of medicinal cannabis products, including terpene-rich formulations.
Queensland
Queensland’s Medicines and Poisons Act 2019 streamlined medicinal cannabis access, allowing any Queensland doctor to prescribe Schedule 4 CBD or Schedule 8 THC products without state approval.
The state permits industrial hemp with up to 1% THC under the Drugs Misuse Regulation 1987. Queensland Health has developed a Medicinal Cannabis Action Plan (2025-2026) addressing stakeholder concerns about prescribing and dispensing practices.
Western Australia
WA regulates industrial hemp through the Industrial Hemp Act 2004, requiring licenses for cultivation with standard 1% THC limits. Medicinal cannabis access follows federal TGA requirements, with prescriptions available through authorized practitioners.
Recent legislative attempts to liberalize personal cannabis possession were rejected, maintaining strict recreational prohibition as opposed to medicinal cannabis.
South Australia
South Australia’s Industrial Hemp Act 2017 governs hemp cultivation with standard THC thresholds. The state maintains medicinal cannabis access through TGA schemes. Industrial hemp products, including those containing hemp-derived compounds below regulatory thresholds, can be produced and sold following appropriate licensing requirements.
Tasmania, Northern Territory, and ACT
Tasmania operates under the Industrial Hemp Act 2015, which permits the licensed cultivation of industrial hemp for non-therapeutic purposes, including textiles and food products. The Northern Territory and Australian Capital Territory follow federal medicinal cannabis frameworks while maintaining varying approaches to personal possession.
The ACT allows personal cultivation of up to four plants per household, though this creates complex interactions with federal prohibition that don’t extend to commercial terpene applications.
TGO 93 Quality Standards for Terpenes
The Therapeutic Goods (Standard for Medicinal Cannabis) Order 2017 (TGO 93) establishes mandatory quality requirements for all medicinal cannabis products supplied in Australia, including those containing cannabis-derived terpenes. These standards apply equally to imported and domestically manufactured products.
TGO 93 explicitly recognizes terpenes as chemical constituents of cannabis alongside cannabinoids. The standard requires thorough testing and documentation for any product containing cannabis-derived materials, including isolated terpenes or terpene-rich extracts. Products must comply with specific quality parameters, including identity, purity, and absence of contaminants.
Key requirements under TGO 93 include prohibiting the adulteration of products with undeclared substances, meaning all terpenes and other ingredients must be fully disclosed and documented.
The standard also prohibits synthetic cannabinoids while permitting naturally occurring cannabis constituents, including terpenes. Processing aids used in terpene extraction are not considered adulterants, provided they are removed from the final formulation.
For imported medicinal cannabis products containing terpenes, manufacturers must adhere to Good Manufacturing Practice (GMP) standards recognized by the TGA. This includes facilities in the UK, EU member states, South Africa, and Israel operating under specified GMP frameworks. Products from other countries require inspection at a TGA facility at the sponsor’s expense.
Testing requirements under Schedule 1 of TGO 93 specify maximum contaminant limits, including 2 µg/kg for aflatoxin B1, 3.0 ppm for arsenic, 0.5 ppm for cadmium, 5.0 ppm for lead, and 0.5 ppm for mercury. While terpene content reporting isn’t mandatory, many manufacturers include terpene profiles on Certificates of Analysis to demonstrate product quality and consistency.
The 2022 amendments to TGO 93 clarified quality requirements, explicitly prohibiting synthetic and modified cannabinoids while strengthening labeling and packaging requirements. These changes reinforce that cannabis-derived terpenes must be naturally extracted rather than synthetically produced, aligning with Terpene Belt Farms’ commitment to authentic cannabis-derived profiles.
Importing Terpenes into Australia
The importation of terpenes into Australia requires careful consideration of their source and intended use. The regulatory pathway differs between botanical terpenes from non-cannabis sources and those derived from hemp or cannabis plants.
Botanical terpenes from non-cannabis sources have no specific import restrictions if they are intended for non-therapeutic uses. These compounds, commonly used in food flavoring, cosmetics, and aromatherapy, can be imported through standard commercial channels without ODC permits or TGA approval.
This makes botanical terpene blends an attractive option for Australian manufacturers seeking to harness the wellness benefits of terpenes without the regulatory complexity.
Cannabis-derived terpenes face significantly stricter controls. According to the Office of Drug Control import guidelines, any extract from cannabis plants (excluding hemp seeds) is considered a drug requiring appropriate permits. This applies even to isolated terpenes containing no detectable cannabinoids if they originate from cannabis plant material.
Hemp seed products represent a special category with specific import allowances. The Customs (Prohibited Imports) Regulations permit importation without ODC licenses if products contain less than 75 mg/kg (0.0075%) total CBD and less than 50 mg/kg (0.005%) total THC.
These thresholds apply to hemp seed oil and other seed-derived products, but explicitly exclude extracts from other parts of the plant.
Importation of medicinal cannabis products containing terpenes requires compliance with TGO 93 standards plus appropriate SAS or AP approvals. Sponsors must provide extensive documentation, including Certificates of Analysis, GMP certification, and stability data.
The Australian Border Force regularly tests hemp shipments, and non-compliant products are subject to seizure and potential criminal charges.
International suppliers, such as Terpene Belt Farms, must work with Australian sponsors who hold the appropriate licenses to facilitate compliant importation. This usually involves providing detailed product specifications, manufacturing documentation, and batch-specific testing results to support regulatory submissions.
Product Categories Optimized for Australia
For Vape Manufacturers: Our 2023 Dessert #111 delivers sophisticated dessert profiles with prominent Limonene (23.16%) and β-Caryophyllene (13.90%) that comply with TGA’s Schedule 4 exemptions when containing zero cannabinoids. These profiles maintain exceptional stability under Australia’s variable climate conditions, from Tasmania’s cool temperatures to Queensland’s tropical heat, ensuring consistent performance across diverse storage environments. With Australia’s strict nicotine vaping regulations driving consumers toward alternative products, these dessert-forward terpene formulations offer compliant differentiation that works well for Australian consumers seeking premium experiences.
For Beverage Developers: Australia’s functional beverage market demands innovation within strict Food Standards Australia New Zealand (FSANZ) guidelines. Our 2022 Fruit #30, with its Pink Lemonade profile featuring β-Ocimene (27.74%) and Limonene (18.02%), and our Water Soluble products are specifically formulated to meet FSANZ’s Novel Food requirements when properly documented. The fruit-forward profile naturally complements Australia’s booming kombucha and functional drink sectors, while our technical team provides guidance on meeting Australia’s stringent food additive regulations, including maximum permitted levels and required labeling disclosures.
For Cosmetic & Wellness Formulators: With the Australian Industrial Chemicals Introduction Scheme (AICIS) requiring specific notifications for cosmetic ingredients, our Pine terpene collection comes with complete INCI documentation and safety assessments. These forest-fresh profiles align with Australia’s growing natural wellness sector while meeting NICNAS replacement scheme requirements. Our terpenes are particularly suited for the Australian spa and aromatherapy market, where consumers expect both efficacy and regulatory compliance.
For Hemp Food Products: Following Australia’s legalization of hemp foods , manufacturers can now incorporate terpenes into hemp seed oil products and other hemp-based foods. Our NEU Bags technology can be adapted for hemp flower products in states where industrial hemp cultivation is permitted, providing consistent terpene enhancement that complies with Australia’s strict 1% THC limit for industrial hemp. Both the Dessert and Fruit profiles offer distinctive positioning opportunities in Australia’s emerging hemp food market while maintaining complete regulatory compliance.
Business Licensing Requirements
Operating legally in Australia’s terpene market requires different licensing depending on the terpene source and intended applications. The regulatory requirements vary significantly between botanical and cannabis-derived terpenes.
For terpenes from non-cannabis sources, no specific licensing is required for import, distribution, or use in non-therapeutic products. Companies can freely purchase and incorporate these terpenes into food, cosmetics, or other consumer products, provided they comply with standard Australian Consumer Law requirements.
However, making therapeutic claims about botanical terpenes would trigger TGA oversight and potentially require registration as therapeutic goods.
Cannabis-derived terpenes fall under medicinal cannabis regulations and require appropriate licensing throughout the supply chain. The Office of Drug Control issues licenses for cannabis cultivation and production, while the TGA oversees product manufacturing and supply.
Companies seeking to import or distribute cannabis-derived terpenes must either hold these licenses directly or work with licensed entities.
Manufacturers incorporating cannabis-derived terpenes into medicinal products must comply with GMP requirements and TGO 93 standards. This includes maintaining detailed quality systems, validated testing methods, and detailed batch documentation.
The TGA conducts regular audits to verify compliance, with non-conforming products subject to recall and penalties.
Specific accreditation is required for testing laboratories to test medicinal cannabis products containing terpenes. Laboratories must demonstrate competency in terpene analysis methods, including gas chromatography and mass spectrometry. Their Certificates of Analysis provide critical documentation for product release and regulatory compliance.
State-level industrial hemp licenses permit cultivation and initial processing but don’t automatically authorize extraction or concentration of terpenes for therapeutic use.
Companies seeking to extract terpenes from hemp must verify whether their activities fall under industrial or medicinal frameworks, as crossing into medicinal applications triggers federal TGA requirements.
Testing and Compliance Requirements
Quality testing is a fundamental requirement for terpenes used in Australian medicinal cannabis products. The TGO 93 standard mandates testing protocols that verify the identity, purity, and safety of all cannabis-derived materials, including terpenes.
Using validated analytical methods, identity testing confirms if the terpenes match their labeled profiles. High-performance liquid chromatography (HPLC) and gas chromatography-mass spectrometry (GC-MS) are standard techniques for the identification and quantification of terpenes. These methods must be validated according to ICH Harmonised Tripartite Guideline Q2(R1) specifications for accuracy, precision, and reproducibility.
Contaminant testing screens for heavy metals, pesticides, microbial contamination, and mycotoxins according to Schedule 1 of TGO 93. Maximum limits include 3.0 ppm arsenic, 0.5 ppm cadmium, 5.0 ppm lead, and 0.5 ppm mercury.
Aflatoxin levels must not exceed 2 µg/kg for aflatoxin B1 or 4 µg/kg for total aflatoxins. These stringent requirements protect patient safety while maintaining product quality.
Stability testing tracks the degradation of terpenes over time to establish appropriate expiration dates. Volatile terpenes can oxidize or evaporate during storage, potentially altering product profiles and therapeutic effects. Best practices for terpene preservation include maintaining temperature-controlled storage, minimizing headspace, and utilizing suitable packaging materials to prevent degradation.
Certificates of Analysis must accompany all medicinal cannabis products containing terpenes. While terpene profiling isn’t mandatory under TGO 93, many manufacturers include detailed analyses to demonstrate product quality and support marketing claims. These certificates must be issued by accredited laboratories using validated methods.
The TGA maintains the authority to test products at any time to verify compliance with relevant regulations. Products that fail to meet TGO 93 requirements face recall, and sponsors could be subject to fines up to $1.1 million for corporations or $222,000 for individuals. This reinforces the critical importance of rigorous quality control throughout the supply chain.
Labeling and Marketing Restrictions
Marketing terpene-infused products in Australia requires careful adherence to advertising restrictions that vary based on product classification and therapeutic claims. The regulations distinguish sharply between general commercial products and those making therapeutic claims.
Standard consumer protection laws apply to botanical terpenes in non-therapeutic applications. Companies can describe terpene aromatic properties, flavors, and general characteristics without restriction.
However, any suggestion of health benefits or therapeutic effects immediately triggers TGA oversight as an unapproved therapeutic good and can potentially attract stiff penalties.
Medicinal cannabis products containing terpenes face strict advertising rules under the Therapeutic Goods Act 1989. Direct-to-consumer advertising of prescription medicines is prohibited, limiting promotional activities to healthcare professionals. Product information can be provided to doctors and pharmacists, but it cannot make unsubstantiated therapeutic claims.
TGO 93 amendments, effective March 2022, specify labeling requirements for medicinal cannabis products. Labels must clearly identify all active ingredients, including specific terpenes, if they’re considered therapeutically active.
The prohibition on synthetic cannabinoids extends to synthetic terpenes in medicinal cannabis products, requiring clear disclosure of terpene sources.
Educational content about terpenes must carefully avoid therapeutic claims unless supported by TGA-accepted evidence. Describing the presence of terpenes, extraction methods, and general properties is acceptable, but linking specific terpenes to health outcomes requires substantiation.
Scientific information about terpene profiles can be shared in professional contexts without constituting advertising.
The TGA has issued multiple infringement notices for non-compliant medicinal cannabis advertising, with penalties of up to $82,500 for companies and $9,900 for individuals. Recent enforcement actions underscore the agency’s commitment to preventing misleading therapeutic claims while ensuring patient access to high-quality products.
Recent Legislative Attempts
Australia’s cannabis regulatory system is still changing and growing through legislative proposals and state-level reforms that may impact future terpene markets. While federal recreational legalization remains politically contentious, incremental changes are creating new opportunities for cannabis-derived products.
The Legalising Cannabis Bill 2023, introduced by the Australian Greens, proposes the establishment of a Cannabis Australia National Agency to regulate the adult recreational use of cannabis. While the bill lacks government support, it signals growing political recognition of cannabis reform.
If passed, it would fundamentally change the rules for cannabis-derived terpenes, potentially allowing broader commercial applications beyond medicinal use.
Victoria’s passage of driving law reforms represents significant progress in recognizing the legitimacy of medicinal cannabis. The legislation, enacted in mid-2025, grants magistrates discretion when prescribed patients test positive for THC without impairment.
This precedent could influence other states to reconsider zero-tolerance driving laws that currently discourage medicinal cannabis use.
Western Australia’s Legislative Council approved a motion in September 2024 to review industrial hemp regulations to facilitate easier cultivation and processing. This review could expand opportunities for hemp-derived terpene production, particularly if it addresses current restrictions on extraction and concentration processes.
Queensland’s Medicinal Cannabis Action Plan (2025-2026) addresses stakeholder concerns about prescribing and dispensing practices. The plan’s implementation may streamline access pathways and clarify quality requirements, potentially benefiting terpene suppliers serving the medicinal market.
A March 2025 economic analysis suggesting that recreational legalization could generate $700 million annually in tax revenue has renewed political debate. While immediate federal legalization appears unlikely, growing public support (over 50% of Australians favoring decriminalization) suggests continued pressure for reform.
Future Market Opportunities
Australia’s terpene market is poised for significant expansion driven by multiple converging factors. The medicinal cannabis market’s projected growth creates substantial demand for high-quality terpene inputs as formulators seek differentiation through sophisticated aromatic profiles.
Growing consumer awareness of the benefits of terpenes is driving demand. Products highlighting specific terpene profiles and their potential contributions to a good user experience command premium positioning. This trend favors suppliers like Terpene Belt Farms, who can provide detailed analytical data and consistent quality.
Currently, the chemical identity of terpenes remains consistent regardless of source, but authentication methods are developing to verify botanical origins. This could create premium market segments for verified cannabis-derived terpenes.
International harmonization efforts through bodies like the International Council for Harmonization may standardize quality requirements across jurisdictions. Australia’s adoption of global standards, for example, could facilitate easier import/export of terpene products and expand market access for compliant suppliers.
Investment in domestic production capabilities continues growing, with AgriFutures Australia committing $2.5 million over five years to hemp research, including sustainability and product development. This may yield innovations in terpene extraction and application, creating new commercial opportunities.
The intersection of pharmaceutical development and cannabis research presents up-and-coming opportunities. As clinical evidence for specific terpene effects accumulates, pharmaceutical companies will seek consistent, high-quality terpene inputs for drug development. Suppliers maintaining pharmaceutical-grade quality standards and documentation will be best positioned to serve this emerging market.
Ready to supply compliant terpenes to the Australian market? Contact Terpene Belt Farms to discuss how our premium cannabis-derived terpenes can meet your formulation needs while maintaining full regulatory compliance.
Frequently Asked Questions
Are Terpenes Legal to Buy in Australia?
Yes, botanical terpenes from non-cannabis sources are legal and unregulated in Australia. However, cannabis-derived terpenes fall under strict medicinal cannabis regulations and require TGA compliance and appropriate licensing.
What Are the Quality Requirements for Cannabis-Derived Terpenes?
Cannabis-derived terpenes must comply with TGO 93 standards, which require detailed testing for identity, purity, and contaminants, including heavy metals, pesticides, and mycotoxins. Products must be manufactured under Good Manufacturing Practice (GMP) standards and include detailed Certificates of Analysis.
Can I Import Terpenes into Australia?
Botanical terpenes from non-cannabis sources can be imported freely through standard commercial channels. Cannabis-derived terpenes require ODC permits and TGA approval, with imports only permitted through licensed sponsors who can demonstrate compliance with medicinal cannabis regulations.
What Licensing Do I Need to Sell Terpene Products?
No specific licensing is required for botanical terpenes used in non-therapeutic products. Cannabis-derived terpenes require appropriate ODC cultivation or production licenses, partnerships with licensed entities, and TGA compliance for therapeutic applications.
Sources Cited
- Australia’s legal cannabis market size: Industry Report, 2033. https://www.grandviewresearch.com/industry-analysis/australia-legal-cannabis-market
- Chapter 2: Cannabis regulation in Australia. (2022, October 19). Office of Drug Control (ODC). https://www.odc.gov.au/review-narcotic-drugs-act-1967-final-report-2019/chapter-2-cannabis-regulation-australia
- Complying with the quality requirements for medicinal cannabis: (2024, October 3). Therapeutic Goods Administration (TGA). https://www.tga.gov.au/resources/guidance/complying-quality-requirements-medicinal-cannabis
- Breaking down Australia’s cannabis laws: A comprehensive state guide to legalisation (2025, May 9). Investing News Network (INN). https://investingnews.com/guide-to-cannabis-in-australia
- Goundan, S. (2025, January 13): A guide to hemp laws in Australia: 2025 edition. Sprint Law. https://sprintlaw.com.au/articles/hemp-laws-australia/
- Guidance for the use of medicinal cannabis in Australia: Patient information. (2025, February 21). Therapeutic Goods Administration (TGA). https://www.tga.gov.au/products/unapproved-therapeutic-goods/medicinal-cannabis-hub/medicinal-cannabis-guidance-documents/guidance-use-medicinal-cannabis-australia-patient-information
- Hemp products: (2021, December 30). Office of Drug Control (ODC). https://www.odc.gov.au/hemp-products
- Importing hemp products into Australia: (2022, October 14). Office of Drug Control (ODC). https://www.odc.gov.au/hemp-products/importing-hemp-products-australia
- Laws & regulations – Australian hemp council: (2022, July 6). Australian Hemp Council – Leading the Hemp Industry Together. https://australianhempcouncil.org.au/laws-regulations/
- Medicinal cannabis hub. (2021, December 30): Therapeutic Goods Administration (TGA). https://www.tga.gov.au/products/unapproved-therapeutic-goods/medicinal-cannabis-hub
- Prescribing medicinal cannabis in Queensland: (2025, July 10). Queensland Health. https://www.health.qld.gov.au/public-health/topics/medicinal-cannabis/prescribing
