Drug users in NSW could be subject to a “two strikes” policy before they face court under a new policy unveiled by the Perrottet government that will fight the scourge of crystal meth and other drugs with a beefed up prevention and rehabilitation program.

The new approach and $500 million in funding comes in response to a landmark inquiry into crystal methamphetamine, also known as ice, which found evidence to suggest Australia has the highest rate of amphetamine consumption per capita in the world. It also found that in the last 12 months, one in seven NSW males had used cocaine.