|1. For a petroleum lease for each $100 of the gross value of petroleum at the well head||$12.00|
|2. For a lease for coal seam gas for each $100 of the gross value of coal seam gas at the well head||$12.00|
|3. For a lease for the taking of -|
|(a) clay, for each tonne||$1.32|
|(b) kaolin, for each tonne||$1.32|
|(c) dolomite - chemical and metallurgical use, for each tonne||$1.32|
|(d) dolomite - other uses, for each tonne||$0.66|
|(e) limestone - chemical and metallurgical use, for each tonne||$1.32|
|(f) limestone - other uses, for each tonne||$0.66|
|(g) silica - metallurgical use,||$1.32 per tonne or 5.35% of sales value, whichever is greater|
|(h) silica flour, for each tonne||$1.00|
|(i) silica - other uses (excluding silica flour)||$0.66|
|(j) sand, for each tonne||$0.66|
|(k) gravel, for each tonne||$0.66|
|(l) pebbles, for each tonne||$2.64|
|(m) building and dimension stone, for each cubic metre||$5.50|
|(n) stone - crushed and broken for each tonne||$0.66|
|(o) magnesite for chemical and metallurgical use||$1.32 per tonne or 5.35% of sales value, whichever is greater|
|(p) magnesite for other uses, for each tonne||$0.66|
|(q) iron oxide used in pigment manufacture per tonne||$1.32|
|Profits-based royalties (Regulations 7-17) relate to mining products not listed in the above schedule.|
Royalty is payable under Section 102 of the Mineral Resources Development Act 1995 (MRDA) in accordance with Part 3 of the Mineral Resources Regulations 2016 (MRR).
Royalty is payable to the Minister in respect of any mineral recovered from Crown land, and in respect of any mineral owned by the Crown which is recovered from private land.
A lessee is required to keep certain supporting documentation in relation to information that is provided in a royalty and production return.
|ROYALTY - Schedule 1|
Schedule 1 of the Mineral Resources Regulations 2016 MRR sets out royalty for some minerals, these generally being:
|· construction materials (assessed on a per tonne basis);|
|· industrial minerals (assessed on a per tonne basis);|
|· petroleum; and|
· coal seam gas.
The leaseholder is required to complete a quarterly return showing the quantity sold and the royalty due. The completed return and the royalty due are required to be received no later than 30 days after the end of the quarter.
|ROYALTY - All other minerals (all minerals other than the minerals listed in Schedule 1 of the regulations)|
Tasmania operates under a two-tiered system where royalty is paid as a percentage of net sales and of profit. The formula for the payment of royalty is specified in Regulation 7 of the Mineral Resources Regulations 2016 MRR. Royalty is payable at the rate of 1.9% of Net Sales, plus profit. A rebate of up to 20% is available for the production of a metal within the State. Maximum royalty payable is 5.35% of net sales.
Royalty becomes due within 30 days of the end of the quarter.
Royalty is payable on an annual basis in quarterly instalments, with the quarters being determined in accordance with the mine's financial year. No prior year losses are carried forward for the calculation.
All detail in relation to the calculation of royalty is contained within the Mineral Resources Development Act 1995 MRDA and the Mineral Resources Regulations 2016 MRR. These can be referenced online at: http://www.thelaw.tas.gov.au
The Mineral Resources Development Act 1995, Section 102AA allows for deferral of royalty to assist a company that is experiencing short term cash flow issues. The criteria by which a deferral can be sought are outlined in an Order. Please refer to the following link for detail.
An application for deferral should be addressed to the Treasurer and sent care of the Director of Mines. The application should be supported by detailed financial information. The Director of Mines will forward the application to the Treasurer.
|For further enquiries on royalties contact:|
|Robert Willis (telephone 03 6477 7097)|