ABOUT 35 per cent of Australians admit to using marijuana at some point in their lives, suggesting prohibition is not working, according to Liberal Democrats Senator, David Leyonhjelm.

He says a Senate committee decision to recommend against his Bill to remove restrictions on recreational cannabis is short-sighted.

"The committee's decision is based on the flawed assumption that continuing with prohibition will achieve something," Senator Leyonhjelm said.

"The Parliamentary Budget Office estimates legalisation would contribute an additional $300 million in GST revenue each year.

"We also know it would free up police and court resources for more important matters."

Senator Leyonhjelm introduced the Bill into the Senate in May this year and in June the Senate agreed to hold a public hearing and called for submissions.

"The inquiry heard no evidence that justified a recommendation for my Bill to not be passed, in fact the evidence confirmed that the status quo is untenable," Senator Leyonhjelm said.

"The Liberal Democrats believe public policy on drugs should not be based on disapproval, but on harm minimisation.

"It is disappointing that the Greens, a party which now has a policy based on the same approach, did not actively participate in the inquiry given my Bill is the first of its kind."

"Nobody is saying that cannabis totally innocent, but recreational marijuana certainly has a cleaner rap sheet than alcohol.

"More and more countries have recognised this and it's about time Australia caught up with the rest of the world."