Is CBD oil legal in AU? This is a question that you may be asking yourself right now and you are looking to buy CBD oil for the first time. Before we even look at the legality of CBD oil in this country, you need to understand what it is. CBD stands for cannabidiol, and it is a type of plant chemical or phytocannabinoid that is found in the cannabis plant species. CBD is a part of approved medical cannabis oil products that are available to patients in Australia which have been approved for its use.