Wastewater testing showed a 19 per cent surge in cocaine consumption and a 17 per cent increase in the use of methylamphetamine in August 2023 when compared to the previous year.
Australians spent an estimated $12.4 billion on methylamphetamine, cocaine, MDMA and heroin during that time, according to the Criminal Intelligence Commission which carried out the testing.
MDMA use jumped by one third but that was coming off a low base, the commission's chief executive Heather Cook said.
Heroin consumption dropped by 7 per cent.
Ms Cook said the rise in methylamphetamine consumption was particularly worrying, with the drug now costing Australian an estimated street value of $10.5 billion per year.
"The 1.5 tonne increase in national methylamphetamine consumption is concerning, because of the significant community harms it causes," she said.
People in capital cities consumed the most cocaine, heroin, MDA and ketamine, while regional residents used the most alcohol, nicotine, oxycodone, fentanyl, MDMA, methylamphetamine and cannabis.
Ketamine is a a "compound of emerging concern" due to its abuse potential, the report stated.
The commission started testing wastewater seven years ago, with alcohol and nicotine consumption well ahead of all other substance.
However, alcohol use has dropped nationally over the past two years.
The report noted fluctuating consumption in the amount of drugs used since the testing program started and said price did not appear to be a factor in which drugs people chose, as a 'deal' of cocaine is less than crystal methylamphetamine.
Wastewater tested covers about 57 per cent of Australia's population.
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