The Difference Between Decriminalisation and Legalisation

By Daniel Okoro · 27 June 2026 · 7 min read
a basket of mushrooms

Two words. Very different legal realities.

Twelve people in the same room can use the word "decriminalisation" and mean at least four different things. I know this because I've watched it happen at public forums, in media coverage of drug law reform, and , honestly , in academic papers that should know better. The confusion isn't pedantic. If you misread what a jurisdiction has actually done to its drug laws, you misunderstand what citizens there can and cannot legally do, and what risks they face if they try.

In Australia right now, the stakes of that distinction are especially pointed. Psilocybin , the primary psychoactive compound in certain fungi species; remains a Schedule 9 Prohibited Substance under the Therapeutic Goods Administration's Poisons Standard. Schedule 9 is the most restrictive category. Possession, use, manufacture or supply of a Schedule 9 substance is a criminal offence in every Australian state and territory, with penalties varying by jurisdiction but serious across the board. The 2023 TGA decision that reclassified psilocybin to Schedule 8 (Controlled Drug) for authorised clinical use is narrower than many headlines suggested: it permits only TGA-registered Authorised Prescribers to prescribe it, in a clinical setting, to specific patient cohorts. That is not decriminalisation. It is not legalisation. It is a tightly bounded medical-access pathway.

So what do those two terms actually describe?

What decriminalisation means in law

Decriminalisation removes or reduces criminal penalties, typically for possession of small quantities for personal use, but the substance itself remains illegal. You might receive a civil fine, a referral to a diversion programme, or no sanction at all for personal possession, depending on the model. But supply, manufacture, and often larger-scale possession remain criminal offences. The drug sits in a legal grey zone: tolerated at the user end, prosecuted at the supply end.

Portugal is the example most cited in this space. Since 2001, personal possession of all drugs (up to defined threshold quantities) has been a civil rather than criminal matter there; handled by "Dissuasion Commissions" rather than courts. Critically, drugs remain illegal. The state simply chose to stop imprisoning people for personal use. That's a policy position, not a statement that the substances are approved or safe.

In Australia, the ACT went furthest in this direction: since October 2023, possession of small amounts of certain drugs, including psilocybin, for personal use carries only a civil penalty (a fine, which can be waived for diversion). But the ACT's own government is explicit that these substances are still illegal. The possession is a "simple drug offence" under the ACT's law; it is not lawful. Residents of every other Australian state and territory face standard criminal penalties for the same possession. This is not a national position.

What legalisation actually requires

Legalisation is a fuller structural change. It means the substance is no longer prohibited; it's regulated through a legal framework covering production, distribution, quality standards, age restrictions, commercial licensing, and taxation. Cannabis in Canada since 2018 is legalisation. Uruguay's 2013 framework is legalisation. These are complex regulatory architectures, not simply the removal of a criminal charge.

Legalisation doesn't mean "anything goes." Regulated alcohol and tobacco are legal but tightly controlled. A legalised drug sits within a system of oversight rather than outside law entirely. The regulatory machinery, licensing, product standards, sale conditions, is the point.

Nothing in Australia's current framework comes close to legalising psilocybin or other classic psychedelics. MDMA was initially flagged for a similar rescheduling to psilocybin but the TGA ultimately declined that in 2024, keeping MDMA as Schedule 9 with no clinical pathway at present.

The TGA's 2023 decision: what it did and didn't do

The short version is: the TGA created a narrow clinical pathway, not a change in general legal status.

From 1 July 2023, psilocybin was rescheduled from Schedule 9 (prohibited substance) to Schedule 8 (Controlled Drug) specifically for use by Authorised Prescribers treating adults with treatment-resistant depression. MDMA remained Schedule 9 for all purposes after the TGA's February 2024 reversal of an earlier decision.

What this means practically: a psychiatrist who has obtained TGA Authorised Prescriber approval can legally prescribe psilocybin in a clinical context. The Special Access Scheme also provides a separate pathway for individual patient access in some circumstances. Outside those pathways; for everyone else, in every other context, psilocybin remains a Schedule 9 prohibited substance. Possession, supply, and use outside these defined medical frameworks is still a criminal offence under both Commonwealth and state/territory law.

I'd argue the media coverage of this rescheduling consistently overstated its scope. "Australia legalises psychedelics" was a headline that appeared in several international outlets. It was wrong. What happened was a careful, conditional carve-out within a medical framework, with significant controls attached. The distinction genuinely matters for anyone trying to understand what's actually permitted.

Why the terminology matters beyond semantics

I was working through some chess puzzles last week (losing to the engine at depth 10, as per usual) and had a paper open in another tab about harm reduction communication. One of its key findings was that public confusion about decriminalisation versus legalisation leads people to significantly underestimate personal legal risk. That's a real-world consequence of imprecise language.

If someone in New South Wales reads that "Australia has decriminalised psilocybin" and takes that to mean they won't face criminal charges for possession, they are wrong, and the risk is serious. NSW retains criminal penalties for psilocybin possession outside the clinical framework. The ACT's civil-penalty model applies only within that territory.

Similarly, if someone reads about the Authorised Prescriber pathway and assumes a general practitioner can now write them a prescription, that's also incorrect. The pathway requires a specialist psychiatrist with specific TGA approval, and access is limited to defined patient cohorts.

The research landscape adds another layer of complexity. Published studies; including those from Johns Hopkins and Imperial College London that have attracted significant attention, involve controlled, supervised administration under ethics-approved protocols, with participant screening, psychological support, and follow-up. Reported doses in these studies are descriptions of experimental methods, not instructions. Attempting to replicate study conditions outside a clinical or research setting isn't just legally prohibited in Australia; it removes the safety structures those studies depend on.

Decriminalisation models vary enormously between jurisdictions

Even among jurisdictions that have "decriminalised," the specifics vary so widely that comparing them directly requires care. Portugal's model is administrative diversion. Oregon's Measure 110 (2020) created a civil citation model but also established a licensed service centre framework, closer to a hybrid. The ACT model is a civil fine that can be redirected to treatment services. Some US states have "decriminalised" only in the sense that prosecutors exercise discretion; there's no formal legal change at all.

None of these models apply to Australia nationally. State and territory drug laws vary, and none outside the ACT's limited civil-penalty model have moved in this direction for psilocybin. The Commonwealth Poisons Standard; administered by the TGA, sits over the top of all of it. Federal law is the ceiling.

For anyone wanting to understand Australia's drug scheduling architecture more closely, the TGA's published Poisons Standard is publicly available and surprisingly readable for a regulatory document. The Australian Drug Foundation also maintains accessible explainers on scheduling and enforcement that are worth your time.

The regulatory vocabulary you'll keep encountering

A few terms appear constantly in these discussions and are worth keeping straight:

These aren't interchangeable. Keeping them distinct is the foundation for understanding any honest conversation about where Australian drug law is, and where it might go.

Whether you think current scheduling is appropriate policy is a separate question, and a legitimate one. But forming any view on that requires knowing what the law actually says, not what you'd like it to say, or what an imprecise headline implied it said. Start with the facts on the ground. The policy debate will still be there when you get to it.

Sources

, Daniel Okoro, Psychedelic science & law writer

Common questions

Is psilocybin legal in Australia?
No — not in any general sense. Psilocybin remains a Schedule 9 Prohibited Substance under the TGA's Poisons Standard. Possession, use or supply outside a narrowly defined clinical pathway (via a TGA-approved Authorised Prescriber) is a criminal offence under both Commonwealth and state/territory law.
What did the 2023 TGA rescheduling actually change?
The TGA's March 2023 decision created a pathway for TGA-approved Authorised Prescribers — specifically psychiatrists — to prescribe psilocybin as a Schedule 8 Controlled Drug in a supervised clinical setting for defined patient cohorts. It did not decriminalise or legalise possession or use outside that clinical framework.
Has any Australian state or territory decriminalised psilocybin?
The ACT (Australian Capital Territory) introduced a civil-penalty model in October 2023 for personal possession of small amounts of certain drugs, including psilocybin. However, possession remains a 'simple drug offence' — it is still unlawful, just subject to a civil fine rather than criminal prosecution. Every other Australian state and territory retains criminal penalties for psilocybin possession outside the clinical pathway.
What is the difference between decriminalisation and legalisation?
Decriminalisation removes or reduces criminal penalties (typically for personal possession of small quantities) but leaves the substance illegal. Supply and manufacture generally remain criminal offences. Legalisation removes the substance from prohibited status entirely and replaces prohibition with a regulated legal framework covering production, distribution, sale and use — comparable to how alcohol or tobacco is governed.
Can a GP prescribe psilocybin in Australia?
No. Under the current TGA framework, only psychiatrists who have obtained specific Authorised Prescriber approval from the TGA can prescribe psilocybin, and only to patients who meet the defined clinical criteria. A general practitioner cannot prescribe it under the standard prescription framework.

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About the author
DO
Daniel Okoro
Psychedelic science & law writer · Perth, WA

I write our psychedelic-science and regulation pieces, which means being very precise about what the law actually allows. Trained in neuroscience comms. I play jazz piano poorly but happily, lose at chess online, and read too many papers.

BSc Neuroscience

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