Queensland is set to decriminalise the possession of "the full spectrum of illicit drugs" and pharmaceuticals and instead refer people caught with substances to drug diversion programs.
Police Minister Mark Ryan says there will be three-strike system for people caught with drugs or drug utensils for personal use, as there is now for cannabis.
Under the proposed laws, people will get a warning for a first offence before being offered diversion programs as an alternative to being charged on the second and third occasions.
Mr Ryan says the changes will help prevent people developing substance abuse disorders and free up police time so they can focus on larger local drug manufacturers and traffickers.
"We know that one in six Australians have used an illicit drug in the last 12 months and that a small proportion will develop a substance abuse disorder," the minister told parliament as he tabled the bill on Tuesday.
"Sadly, those that do develop an addiction suffer the unfulfilled potential, poor health outcomes and broken relationships that so often accompany that struggle.
"The expanded police drug diversion program proposed by the Queensland Police Service, and established by this bill, will help to prevent people from developing a substance abuse disorder."
The proposed laws will limit the amount of drugs people can be caught with to be eligible for diversion, but those who commit minor drug offences at the same time as serious crimes, and those who have been previously jailed for serious drug crimes won't be eligible.
Mr Ryan said the proposed laws would also increase the maximum sentence for trafficking dangerous drugs from 25 years to life imprisonment.
"This amendment is intended to send an unequivocal message: If you profit from the addiction of others, you should expect to go to jail for a long time," he said.
The bill will be probed by the parliamentary Legal Affairs and Safety Committee.