Criminal Law
Two-Strike Drug Diversion in NSW: How Minor Drug Charges Are Changing in 2025
In February 2024, New South Wales introduced major reforms to how minor drug possession charges are handled.

Introduction: A New Approach to Minor Drug Offences in NSW
In February 2024, New South Wales introduced major reforms to how minor drug possession charges are handled. Known as the Early Drug Diversion Initiative, this new approach moves away from traditional criminal prosecution for low-level drug offences, focusing instead on early intervention, education, and rehabilitation.
At Jones Hardy Law, we recognise that drug laws affect people from all walks of life. If you or someone you know faces minor drug possession allegations, understanding how the Early Drug Diversion Initiative works could make a significant difference to the outcome of your case, and your future.
What Is the Two-Strike Drug Diversion Scheme?
The Early Drug Diversion Initiative, often called the two-strike scheme, was designed to:
- Reduce the criminalisation of individuals found with small quantities of illicit drugs.
- Prioritise health-based responses over punitive court proceedings.
- Alleviate pressure on the justice system by diverting minor cases away from the courts.
Under the new laws, adults caught with a small quantity of a prohibited drug (other than cannabis) for personal use can:
- Receive a $400 Criminal Infringement Notice on the first occasion, waived if they complete a NSW Health drug and alcohol intervention by phone.
- Receive a second notice on the same terms on the next occasion.
- Face a court attendance notice, and prosecution, from the third occasion: police then have no discretion.
This represents a major shift from the former “zero tolerance” approach and aligns NSW more closely with evidence-based strategies used internationally.
Who Is Eligible for the Early Drug Diversion Initiative?
Eligibility for the scheme is strictly controlled and applies only to:
- Individuals caught with small quantities of prohibited drugs (e.g., personal use amounts of MDMA, cocaine, or methamphetamine; cannabis is not included).
- People without an unspent conviction for a serious drug offence such as supply or manufacture (a record for violence does not on its own disqualify).
- Adults aged 18 or over (young people are dealt with under the Young Offenders Act 1997 instead).
Police officers have discretion when determining eligibility, but strict guidelines are in place to ensure consistency.
What Happens If You Are Caught?
Under the Early Drug Diversion Initiative:
- First detection:
- Police may issue a $400 Criminal Infringement Notice.
- The fine is waived if you complete a NSW Health drug and alcohol intervention by phone; no conviction is recorded.
- Second detection:
- Police may issue a second $400 notice on the same terms.
- Third detection:
- Police must issue a court attendance notice, and you will be prosecuted for drug possession under the Drug Misuse and Trafficking Act 1985.
If you do not complete the intervention, the $400 fine must be paid.
How Are “Small Quantities” Defined?
“Small quantity” limits are determined by Schedule 1 of the Drug Misuse and Trafficking Act 1985 (NSW), including:
- Cannabis: not covered by this scheme; small amounts of cannabis are dealt with under the separate Cannabis Cautioning Scheme.
- MDMA (ecstasy): Up to 0.25 grams.
- Cocaine: Up to 1 gram.
- Methamphetamine (ice): Up to 1 gram.
Quantities above these thresholds may disqualify an individual from diversion and lead directly to court proceedings.
Legal Advantages of the Early Drug Diversion Initiative
If eligible, the scheme offers several important benefits:
- Avoids a criminal record: Protecting your employment, travel, and professional licensing prospects.
- Early intervention: Providing access to support and treatment that may prevent future legal issues.
- Reduced financial cost: No court appearances, fines, or criminal penalties if diversion is successful.
- Confidentiality: Diversion records are kept separately and are not disclosed like court records.
This is a valuable second (and third) chance to resolve matters without long-term damage.
Potential Pitfalls and Things to Watch Out For
While the scheme is positive in many ways, individuals should be aware:
- Discretion lies with police: Eligibility can still be refused if aggravating circumstances are present (e.g., aggressive behaviour toward officers).
- Diversion compliance is critical: Failing to attend education or treatment sessions may void your diversion and result in charges.
- Possession of large quantities or additional offences: Will result in immediate prosecution outside the diversion framework.
It is crucial to engage legal advice immediately if you are unsure about your eligibility or if problems arise.
What If You’re Charged Despite Believing You’re Eligible?
Mistakes can happen, and individuals sometimes find themselves charged even if they meet diversion criteria.
If this occurs:
- Do not plead guilty immediately.
- Seek advice from an experienced criminal lawyer, like the team at Jones Hardy Law.
- We can assess whether the police have properly applied the Early Drug Diversion Initiative and whether a defence exists to challenge the charge.
In many cases, charges can be withdrawn or dismissed if police have incorrectly bypassed the diversion process.
Practical Advice: If You Are Stopped by Police
If police approach you and allege drug possession:
- Be respectful: arguing or becoming hostile will not help.
- Exercise your right to silence: you do not have to answer questions beyond providing your name and address.
- Comply with any lawful requests: including searches.
- Ask if you are eligible for caution and diversion under the Early Drug Diversion Initiative.
- Contact a lawyer immediately if you are uncertain or uncomfortable.
Police must follow clear operational guidelines. If you feel your rights have been infringed, seek professional advice.
Broader Context: What This Means for NSW
The Early Drug Diversion Initiative reflects an ongoing national debate about drug laws in Australia. By shifting low-level drug possession away from the courts, NSW aims to:
- Reduce the stigma associated with minor drug use.
- Connect people with health services earlier.
- Free up police and court resources for more serious matters.
However, it is not a decriminalisation of drugs, possession remains a criminal offence after repeated breaches or ineligible cases.
At Jones Hardy Law, we encourage everyone facing drug allegations to take the opportunity seriously and engage legal support early.
Conclusion: Knowledge Is Power, Use the Early Drug Diversion Initiative Wisely
The introduction of the Early Drug Diversion Initiative marks a major cultural shift in how NSW approaches minor drug possession.
Understanding your eligibility, your rights, and your responsibilities under the new system is crucial to protecting your future.
If you are unsure about where you stand, facing charges, or worried about your legal options, Jones Hardy Law is ready to assist. With decades of combined criminal defence experience, our team can help you navigate the system confidently and secure the best possible outcome.
If you or someone you know has been charged with drug possession in NSW, visit JonesHardyLaw.com.au to book a free 15-minute call today. Your future deserves informed, strategic advocacy.



