THE federal government has proposed new regulations to ensure medicinal cannabis doesn't end up on the black market.
The government introduced legislation last week to amend the Narcotic Drugs Act to ensure "safe, legal and reliable" local supply of cannabis for medicinal products.
The changes are designed to balance patient access with community protection.
Under the legislation, law enforcement agencies can confidently give sensitive information to the government to help inform their assessments of cultivation licence applicants.
The amendments come ahead of the medicinal cannabis licensing scheme, which begins on October 30.
All regulatory aspects of medicinal and scientific cannabis will be overseen by the Commonwealth under the scheme.
Health Minister Sussan Ley said the scheme can only be a success with the right protections in place.
"Protections need to be implemented to ensure those cultivating the medicinal cannabis are subject to strict fit and proper persons requirements to ensure they are suitable to participate in this industry," Ms Ley said.
"We need to exclude people who look at the cannabis cultivation scheme as a way to profit from diverting cannabis to the black market."
The amendments also ensure the cultivation scheme complies with international obligations.