People who are caught with small quantities of illicit drugs for personal use could be issued with fines that they can work off by seeking help as part of a drug law overhaul being introduced into the New South Wales parliament this week.
The two-strike scheme could see thousands of recreational ice, cocaine and MDMA users avoid criminal penalties.
Proponents argue it would allow police to focus on dealers and connect users with help to avoid long-term drug use.
The legislative change will be introduced when NSW parliament returns on Tuesday.
Concerns have been raised that the government has not yet committed to a date for its promised drug summit or meaningfully engaged in drug reform since coming to power in March.
Last week the government also dismissed calls for a pill-testing trial after the deaths of two young men who attended a music festival in Sydney.
Under the new laws, police will be allowed to issue criminal infringement notices – $400 fines – to adults caught with small quantities of drugs for personal use up to two times.
People will then be able to complete a “tailored drug and alcohol intervention” after which their fine would be wiped. If the treatment was not completed, the fine would be enforced by Revenue NSW.
The health minister, Ryan Park, said the government was taking an “evidence-based” approach to drug reform.
“Drug use and dependence are very much health issues and ones that are far better addressed through health support outside the courts and criminal justice systems,” he said.
“This is an evidence-based approach in line with community expectations. It responds directly to expert evidence, and recommendations from the special commission of inquiry into the drug ice.”
The proposal was a fall-back recommendation of the ice inquiry, led by Dan Howard, that called for the complete decriminalisation of drug possession in NSW.
The government hopes the law could divert thousands away from the criminal justice system, giving police another option when dealing with people found with drugs.
According to the government, most low-level drug offenders who attend court and are fined are not provided any incentive to seek health help.
The change will not apply to drug supply, dealing or trafficking, manufacturing, people with prior dealing convictions or people with large quantities of drugs.
The police minister, Yasmin Catley, said the scheme would lead to “better outcomes for low-level drug offending without compromising safety”.
“It is not mandatory for the police to issue an on-the-spot fine – this is another tool in their kit and police retain their discretion to deal with the matter as appropriate, including proceeding to court,” she said.
“Providing the police with more options to manage drug offences allows a proportionate response to the offending behaviour and health issues that officers are seeing in the community.”
The change would bring NSW into line with other Australian states and territories.