CBD vs Hemp Oil: What’s the Difference? And why wording matters more than ever in the Australian cannabis space

As interest in cannabis and hemp-based wellness grows in Australia, so too does the confusion around product labels. The terms “CBD oil,” “hemp oil,” and “hemp extract” are often used interchangeably — but they don’t always mean the same thing.

In many cases, this confusion isn’t just due to poor labelling or misleading marketing. It’s a reflection of how tight, complex, and evolving the regulations are — especially when it comes to selling cannabinoids like CBD in Australia.

This blog is here to help you decode what’s what — and understand why certain products may look like CBD oil, act like CBD oil, but aren’t allowed to be labelled that way.

What Is CBD Oil?

CBD (Cannabidiol) is a non-intoxicating compound found in cannabis and hemp plants. It’s a cannabinoid, and it’s currently classified in Australia as a Schedule 4 prescription-only medicine, unless it meets very specific criteria for low-dose over-the-counter use (which, as of now, no product has been approved for).

CBD oil is usually made by extracting CBD from the plant’s flowers and leaves, and suspending it in a carrier oil like MCT, olive oil, or hemp seed oil.

Key facts:

  • Can only be legally purchased in Australia via prescription
  • Must be manufactured under strict GMP (Good Manufacturing Practice) conditions
  • The label will usually say “CBD” and include the amount in milligrams (mg)
  • Cannot be sold through general retail or online stores (yet)

What Is Hemp Seed Oil?

Hemp seed oil is a completely different product. It’s made by cold-pressing the seeds of the hemp plant. While it’s rich in omega-3 and omega-6 fatty acids and great for skin and nutrition, it does not contain CBD or THC. 

You’ll find it legally in in our hemp food range as well as a core ingredient in our beautiful hemp skincare range — and that’s completely above board (thanks to the 2017 changes in hemp food legislation). The confusion happens when hemp seed oil is marketed in a way that implies it has medicinal or cannabinoid effects.

Where “Hemp Extract” Comes In — and Why It’s Complicated

Because of the regulatory environment in Australia, some businesses use terms like:

  • “Hemp oil”
  • “Hemp extract”
  • “Contains 1000mg of hemp oil”
  • “Natural cannabinoids” (without specifying CBD or THC)

These phrases can sometimes be used to hint at CBD content — or to describe cannabinoid-containing oils without using restricted language.

In some cases, these products do contain measurable cannabinoids. In others, they don’t — and the label is vague enough to avoid regulation.

We understand why this happens.

For many small businesses, farmers, or formulators, using generalised terms like “hemp extract” may be the only way to bring their products to market in a country where cannabis regulation hasn’t caught up with consumer demand — even when intentions are good and quality is high.

But as a result, it’s become harder for everyday people to know what they’re really buying.

What To Look Out For — and What To Ask

If you’re shopping for CBD, hemp, or cannabis products, here are some key things to check:

✅ Is the cannabinoid content listed in milligrams (e.g. 300mg CBD)?
✅ Is there a recent, third-party Certificate of Analysis (COA) showing lab-tested cannabinoid levels?
✅ Is the company making medical claims (like pain relief, anxiety treatment) without being a prescription product?
✅ Does the label clearly differentiate between hemp seed oil and hemp extract?

 

Why Transparency Still Matters

At Made In Hemp, we support innovation and access — but we also believe that transparency is non-negotiable.

We support cannabinoid-rich products being made available to the public in a safe, regulated, and clearly labelled way. And while we understand the workaround of using flexible language like “hemp extract,” we still advocate for:

  • Accurate testing
  • Lab reports
  • No exaggerated medical claims
  • Clear cannabinoid content disclosure, even if not named directly

We’re licensed hemp growers ourselves, and we’ve seen the confusion this space creates for customers every single day. That’s why we’re committed to building a public resource hub grounded in clarity and respect for both the plant and the people using it.

Need Help Understanding a Label or Product?

We're not here to judge or scare — we’re here to educate. If you’ve come across a product labelled “hemp extract” or “CBD oil” and aren’t sure what it really is, we’re happy to help you unpack it.

Reach out, or drop by one of our stores. No pressure, just plain-English answers.