The federal Coalition's move to overturn the ACT's drug laws is an assault on territory rights, Chief Minister Andrew Barr has said.
"Another day, and another Liberal assault on territory rights," he said in a statement.
"This is just another exercise in political posturing from the Liberals. Conservatives cynically refer to it as 'throwing some red meat to the base'.
"It serves as yet another demonstration of the Liberals' true colours."
Western Australian Liberal senator Michaelia Cash has introduced a private senators' bill that would overturn the territory's laws, which are set to decriminalise possession of small amounts of illicit drugs next month.
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The laws were passed in the Legislative Assembly a year ago, enabling a person caught with a small amount of drugs to be fined $100 or be sent to a diversion program, in a move ACT Health Minister Rachel Stephen-Smith said would provide a health response to the issue of illicit drugs.
"Our nation's capital should not be the drug capital," Ms Cash, shadow attorney-general, said in a statement.
Most common recreational drugs will be decriminalised, including cocaine, ecstasy (MDMA), ice, heroin, LSD, and amphetamines.
Federal Opposition Leader Peter Dutton said the changes were madness.
"These ACT drug laws beggar belief. I am totally shocked and dismayed at what the ACT government is doing," Mr Dutton said.
But Canberra Liberals leader Elizabeth Lee has hit out at her federal counterparts over their attempt to overrule the laws.
"The Canberra Liberals will always stand up for territory rights and I am very concerned about any step to diminish that," she said.
"I do not agree with this action taken by the federal Coalition to seek to overturn legislation that was passed by the ACT Assembly."
Ms Lee said the Canberra Liberals disagreed with the laws but the only way to overturn them was to vote out the government at the 2024 territory election.
Ms Lee said she has written to Mr Dutton, Ms Cash and Liberal MP Julian Leeser, who will run the case for the bill when it comes to the house, to express her "serious concerns".
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with Jasper Lindell