Royalty … Contents Royalty Legislation Amendment Bill 2020 v10b Page 3 Authorised by the Parliamentary Counsel 31 Amendment of s 37 (Minister may require royalty return to be lodged on 9 15. QRC chief executive Ian Macfarlane said maintaining royalty rates – already Australia’s highest - at current levels for the next 10 years sends a clear message to investors around the globe that 'Queensland is open for business'. It … Royalty rates. Speaking at the Bowen Basin Mining Club, the head of Queensland’s peak resource industry body said industry fully … In the five financial years between 2014 and 2018 ten of the biggest mining corporations operating in Queensland made over $128 billion in revenue and paid less than 1% in tax, with 8 of those corporations paying zero dollars. Royalty liabilities are calculated on the basis of operations. Treasury, Queensland Government, Quarterly and annual metal prices and variable rates, licensed under Creative Commons Attribution 4.0 sourced on 19 January 2021 Disclaimer Our data is published as an information source only, please read our disclaimer . The petroleum royalty rate you use to calculate your liability is set out in section 147C of the Petroleum and Gas (Royalty) Regulation 2004. Liability; Mineral rates; Gross value; Deductions; Royalty-free threshold; Processing … On the other hand, LNG royalties are expected to deliver $2.9 billion over four years, up 29 per cent since the 2018-19 budget on the back of the royalty rate increase. Select from the mineral types below to see the rate that applies and related information. 13. Treasury, Queensland Government, Previous duty, tax and royalty rates, licensed under Creative Commons Attribution 4.0 sourced on 22 January 2021 Disclaimer Our data is published as an information source only, please read our disclaimer . Payment methods; Monthly payments; Payment due dates; Late lodgement fee, penalty and interest; Calculating mining royalty. Treasury, Queensland Government, Previous duty, tax and royalty rates, licensed under Creative Commons Attribution 4.0 sourced on 22 January 2021 Disclaimer Our data is published as an information source only, please read our disclaimer . An operation may contain a single mining authority or multiple authorities, as determined under the legislation or by us. At the end of your visit today, would you take our quick business survey? benchmark price methoddetermination of petroleum royalty ratesformula methodgas royaltypetroleum royaltyposition paperRoyaltiesroyalty, © The State of Queensland (Queensland Treasury). mineral-specific Royalty Rulings (MRA001, MRA002, MRA003 and MRA004) have been replaced with Public Rulings (no substantive changes have been made) the general and tax administration Public Rulings have been updated. is coal that is sold or disposed of for consumption, or used outside Queensland (either in The adoption of the TAA for royalty should offer royalty payers treatment consistent with entities paying Queensland duties and taxes. Thanks! Treasury, Queensland Government, Previous duty, tax and royalty rates, licensed under Creative Commons Attribution 4.0 sourced on 22 January 2021 Disclaimer Our data is published as an information source only, please read our disclaimer . royalty. The current royalty rates are listed below. The royalty rate for phosphate rock must be calculated: separately for each mining operation for which the producer is liable to pay royalty; with reference to the average phosphorus pentoxide (P 2 O 5) content of the rock sold, … The current royalty rates are listed below. The current royalty rate for petroleum and gas (including oil, condensate, natural gas, LPG and coal seam methane) is 12.5% of the wellhead value disposed of or produced in the return period. From 1 October 2020, royalties will be calculated based on applying a tiered royalty rate to the volume of petroleum produced, rather than the current system of 12.5% of wellhead value of petroleum disposed. Mining corporations are some of the worst offenders when it comes to tax dodging and exploiting tax loopholes. However, the royalty legislation would continue to govern when a liability arises, the rates of tax, and the exemptions and concessions that may apply. Queensland’s coal royalties reached a record breaking contribution of $3.8 billion for 2017-18 to the State Budget, up from a previous record of $3.4 billion in 2016-17. The shock royalty rate increase from 10 per cent to 12.5 per cent of wellhead value will deliver an extra $476 million into state coffers by … Export coal. 15. Mining corporations are some of the worst offenders when it comes to tax dodging and exploiting tax loopholes. The development of these industries in a way that does not always align with the legislation has resulted in issues for petroleum producers in interpreting and applying the legislation, and for the Office of State … 1-2 of the Mineral Resources Regulation 2013, Quarterly and annual metal prices and variable rates, Royalty calculations for prescribed and specified minerals, Prescribed minerals – guide for OSR Online, Public ruling MRA003 – Determination of royalty for certain minerals, Royalty ruling MRA003 – Determination of royalty for certain minerals, Schedule 3, s. 4 of the Mineral Resources Regulation 2013, Rate to be calculated separately for domestic (sold or disposed of for consumption, or used, within Queensland) and non-domestic coal, Public ruling MRA001 – Determination of coal royalty, Royalty ruling MRA001 – Determination of coal royalty, Schedule 3, s. 5 of the Mineral Resources Regulation 2013, Schedule 3, s. 6 of the Mineral Resources Regulation 2013, Precious stones and other minerals – guide for OSR Online, Schedule 3, s. 12 of the Mineral Resources Regulation 2013, Processing discount applies (except rare earths), Public ruling MRA002 – Determination of royalty for prescribed and specified minerals (for manganese, molybdenum, tantalum and tungsten), Royalty ruling MRA002 – Determination of royalty for prescribed and specified minerals (for manganese, molybdenum, tantalum and tungsten), Public ruling MRA003 – Determination of royalty for certain minerals (for rare earths), Royalty ruling MRA003 – Determination of royalty for certain minerals (for rare earths), Schedule 3, s. 8 of the Mineral Resources Regulation 2013, Other metallic minerals – guide for OSR Online, Schedule 3, s. 9 of the Mineral Resources Regulation 2013, Schedule 3, s. 3 of the Mineral Resources Regulation 2013, Particular minerals – guide for OSR Online. For any mineral not listed below (that is, a mineral for which there is no specified rate in the Mineral Resources Regulation), the rate is 2.5% of the value and the royalty-free threshold applies. (2) For section 333QD(d) of the Act, a royalty return is taken to be given to the Minister if it is left at an office of the department (mining) with the chief executive, … Queensland’s petroleum royalty regime and legislation were designed prior to the emergence of the coal seam gas (CSG) and liquefied natural gas (LNG) industries. A royalty discount applies for base metals processed within Queensland to a particular metal content. Treasury, Queensland Government, Previous duty, tax and royalty rates, licensed under Creative Commons Attribution 4.0 sourced on 22 January 2021 Disclaimer Our data is published as an information source only, please read our disclaimer . Sections 146 (domestic gas), 148B (supply gas), 148G (project gas) and 148L (liquid petroleum) of the Regulation . 85A Where royalty return may be lodged and timing of lodgement—Act, ss 333QD and 333QE (1) Subsection (2) prescribes, for section 333QD(d) of the Act, the person with whom, and the way, a royalty return may be given. Queensland resource companies and their employees pay billions of dollars a year in taxes, charges and royalties to all three levels of government in Australia. Mineral royalty framework. Taxes are paid to the Australian Government (principally through company income tax), to the Queensland Government (through payroll tax, rents, stamp duty and royalties), and to local councils through rates and … The royalty rate for coal for a return period is calculated by reference to the average price per tonne of the coal sold, disposed of or used in that period (average price, or AP) by a producer in relation to a particular mining operation, as follows: If the average price is $100 or less, the rate is 7% of the value of the coal. Calculating the correct amount of royalty is important because we will impose a penalty of 75% of any understated liability. The Queensland Resources Council (QRC) welcomes the state government’s willingness to revisit royalty rates, but only if any changes implemented apply equally to all operations, Chief Executive Ian Macfarlane told a Mackay audience today. The State of Queensland royalty is 7% of the value of coal if the average coal price is $100 or less. See Table 2 for the Queensland royalty rates. Rates are either a percentage of value, or a flat rate per tonne. amount of royalty? Are you ready to start the survey now? The royalty rate for iron ore depends on the average price for each tonne of the iron ore sold, disposed of or used in the return period (average price, or AP) by a producer in relation to a particular mining operation, as follows: 1.1. For any mineral not listed below (that is, a mineral for which there is no specified rate in the Mineral Resources Regulation), the rate is 2.5% of the value and the royalty-free threshold applies. If the average price is $100 or less, the rate is $1.25 … (c) for section 590(2)(c) of the Act, the rate at which petroleum royalty is payable. Royalty rates. The Queensland Government has increased the rate of royalty taxes on petroleum by 25 per cent as part of its 2019 state budget. Calculating the correct amount of royalt… The value of a mineral (other than coal seam gas) is calculated by determining the gross value of the mineral and deducting certain permitted expenses. It has not yet been determined what the royalty rates will be for each class of petroleum, however we expect to receive confirmation on these rates following completion by the Queensland Treasury of its 'Petroleum Royalty Review – Implementation Consultation' (Consultation Paper) released 10 June 2020.The Consultation Paper invites industry to comment on issues arising in … This paper explains how the formula method or the benchmark price method can be used to determine petroleum royalty rates from 1 October 2020 in Queensland. A rate of 11.25% applies for annual returns lodged for the return period ending 31 December 2019. Depending on the mineral, the royalty rate payable under the Mineral Resources Regulation 2013 is either a percentage of the value of the mineral or a flat rate per tonne. Royalty taxes on petroleum, which includes liquified natural gas, have risen from 10 per cent to 12.5 per cent for all gas produced in Queensland, effective as of July 1. On the other hand, LNG royalties are expected to deliver $2.9 billion over four years, up 29 per cent since the 2018-19 budget on the back of the royalty rate increase. He said when the 30 per cent company income tax and the new royalty rates were factored in, a typical coking coal operation would have an effective tax rate of 50 per cent. Comments are now open on the draft royalty ruling on flared or vented petroleum (PGA002). A different royalty rate applies to each petroleum type 10, with the royalty rate being determined each return period. Royalty for coal seam gas is calculated in the same way as petroleum royalty. 14. This paper provides guidance on how to determine the royalty rate for each petroleum type using the formula method or the benchmark price method. COVID-19 alert: Read about eased restrictions for businesses in Greater Brisbane from 1am, Friday 22 January. Coal royalties would not be increased in Queensland's next budget “in exchange” for millions of dollars in contributions from mining giants to a … The Australia Institute report found that royalty rates for thermal coal remain lower in Queensland, where miners receive up to 17% discount compared to the flat rates in NSW. This paper explains how the formula method or the benchmark price method can be used to determine petroleum royalty rates from 1 October 2020 in Queensland. In the five financial years between 2014 and 2018 ten of the biggest mining corporations operating in Queensland made over $128 billion in revenue and paid less than 1% in tax, with 8 of those corporations paying zero dollars. No changes have been made to royalty rates or the way in which royalty liability is determined. Sections 145 (domestic gas), 148A (supply gas), 148F (project gas) and 148K (liquid petroleum) of the Regulation . Contents Royalty Legislation Amendment Bill 2020 v10b Page 3 Authorised by the Parliamentary Counsel 31 Amendment of s 37 (Minister may require royalty return to be lodged on 16. Queensland Government, Help for people affected by natural disasters, Coronavirus (COVID-19) and your SPER debt, Contacting you about debts and unclaimed funds, Statistics for debts registered with SPER, Relief package for landlords and tenants – leasing principles, Sample Social Benefit Bond Transaction Documents, Northern Australia Infrastructure Facility, Improving rehabilitation and financial assurance outcomes in the resources sector, Backing Queensland Business Investment Fund, Determination of petroleum royalty rates—position paper, Determination of petroleum royalty rates - Downloadable PDF, Queensland Government Statisticians Office. Under Queensland's system, royalties are payable at 10 per cent of well-head value – the amount that could reasonably be expected to be realised if … When you're ready, just click 'Start survey'. Do you own, operate or intend to start a business in QLD? Rates are either a percentage of value, or a flat rate per tonne. petroleum royalty rate, and data in relation to all relevant sales must be used in the average sales price formula. Paying mining and petroleum royalties. Fair royalty rates. Updated: 30 Nov 2020 Treasury, Queensland Government, Previous duty, tax and royalty rates, licensed under Creative Commons Attribution 4.0 sourced on 19 January 2021 Disclaimer Our data is published as an information source only, please read our disclaimer . Benefits for royalty payers from the change would include: Merits review for royalty decisions. The higher of $0.80 per tonne or the amount determined by the formula contained in Schedule 3, s. 10(1)(b) of the Mineral Resources Regulation 2013. Definitions . The Queensland royalty rate is progressive in the sense that the percentage increases as the value of the coal increases. Find the right royalty rate for the different types of minerals. It looks like you’re about to finish your visit. Sections 147 (domestic gas), … The following table summarises the royalty rate applicable to various minerals, and indicates for each mineral: whether royalty is imposed on the basis of the value or the weight of the mineral sold, disposed of or used; whether the mineral attracts the royalty-free threshold (see paragraphs 26 to 29) Schedule 3, s. 10 of the Mineral Resources Regulation 2013, The lesser of 10% or the percentage of the value of the oil processed from the oil shale determined by the formula contained in Schedule 3, s. 11(2) of the Mineral Resources Regulation 2013, Schedule 3, s. 11 of the Mineral Resources Regulation 2013, Processed oil shale – guide for OSR Online, Schedule 3, s. 13 of the Mineral Resources Regulation 2013, Calculating your costs when starting a business, Licensing, registrations and legal obligations, Australian Business Licence and Information Service (ABLIS), Getting the right licences and registrations, Coronavirus (COVID-19) support for commercial landlords, Coronavirus (COVID-19) support for commercial tenants, Information technology (IT) and internet for start-ups, Business restrictions for coronavirus (COVID-19), Current business restrictions for coronavirus (COVID-19) in Queensland, Chief Health Officer direction - restrictions on businesses, activities and undertakings, Hiring a contractor, consultant or freelancer, Information and assistance for Fair Trading's regulated industries and licensees affected by COVID-19, Business requirements under trade measurement laws, Assess and improve your digital capability, Coronavirus (COVID-19) electricity relief for small businesses, Interest-free loans for solar and storage, Manage environmental risks and other climate risks to your business, Meeting environmental obligations and duties, Business health and safety resources for coronavirus (COVID-19), Mental health and wellbeing resources for businesses, Incident reporting to Workplace Health and Safety Queensland (WHSQ), Intellectual property for Queensland businesses, Managing intellectual property in business, Coronavirus (COVID-19) industry-specific support, Border restriction exemptions for the mining, resources, energy and water sectors, Transporting dangerous goods in Queensland, Trialling an automated vehicle in Queensland, Supply transport and infrastructure services to Queensland Government, Information and communication technology (ICT), Service industries, regulated industries, and professionals, Information and assistance for Fair Trading's regulated industries and licensees affected by coronavirus (COVID-19), Housing and accommodation service providers, Environmental codes of practice for industry, Queensland's food and agribusiness industry, Queensland's renewable energy supply chain, eased restrictions for businesses in Greater Brisbane, Authorities and permits for minerals and coal, how to correct errors in a royalty return, Aboriginal and Torres Strait Islander peoples, Rock mined in block or slab form for building or monumental purposes, Mined for consumption outside Queensland – the higher of 10% of the value of the bauxite or $2.00 per tonne, Mined for consumption within Queensland, where bauxite mined for consumption outside Queensland was also sold, disposed of or used during the return period (relevant bauxite) – the higher of 75% of the calculated rate per tonne for relevant bauxite or $1.50 per tonne, Mined for consumption within Queensland, where no bauxite mined for consumption outside Queensland was sold, disposed of or used during the return period – $1.50 per tonne, Where average price per tonne is $100 or less – $1.25 per tonne, Where average price per tonne is more than $100. Variable rate between 2.50% and 5.00% (varying in 0.02% increments) of value, depending on average metal prices, Rate for each return period is published in the Quarterly and annual metal prices and variable rates, Processing discount applies (except gold and silver), Public ruling MRA002 – Determination of royalty for prescribed and specified minerals, Royalty ruling MRA002 – Determination of royalty for prescribed and specified minerals, Schedule 3, ss. the royalty rate for each petroleum type will be determined with reference to the average sales price for that type of petroleum the average sales price will either be calculated based on the volume and value of certain sales or be equal to a legislated benchmark price, depending on circumstances. If you do not report and pay the correct amount of royalty, you can be charged interest (currently 8.10% per annum) and a royalty penalty (at a rate of up to 75% of the under-reported royalty). No royalty is payable on the first $100,000 of the combined value of certain minerals sold, disposed of or used in a financial year (the royalty-free threshold). Draft royalty ruling. 1. Upon lodgement of a petroleum royalty return by a producer, an assessment of royalty and each related amount 11 is taken to have been made by the Commissioner for the amount that, on the basis Fair royalty rates. "Before COVID-19 hit, the Queensland Government confirmed the royalty rates on coal and metals would remain stable until 2022, and for petroleum until … Changes have been made to royalty rates or the way in which royalty is! Of royalty taxes on petroleum by 25 per cent as part of 2019... Gas is calculated in the sense that the percentage increases as the value of the worst offenders when comes... With entities paying Queensland duties and taxes is determined under the legislation or us... Is progressive in the sense that the percentage increases as the value of the worst offenders when it comes tax! To tax dodging and exploiting tax loopholes business survey made to royalty rates or the way in which liability! Worst offenders when it comes to tax dodging and exploiting tax loopholes of your visit payment due dates Late... Payment methods ; Monthly payments ; payment due dates ; Late lodgement fee, penalty and interest ; mining... Return period ending 31 December 2019 coal seam gas is calculated in the same way as petroleum royalty ratesformula royaltypetroleum! Offenders when it comes to tax dodging and exploiting tax loopholes find the right royalty rate being each! 31 December 2019 royalty rates qld petroleum royalty ratesformula methodgas royaltypetroleum royaltyposition paperRoyaltiesroyalty, © the state of (... See the rate that applies and related information petroleum royalty ratesformula methodgas royaltypetroleum royaltyposition paperRoyaltiesroyalty ©... Of operations rate per tonne and related information on the draft royalty ruling on flared or vented petroleum ( )... To royalty rates or the way in which royalty liability is determined formula or... Payers treatment consistent with entities paying Queensland duties and taxes today, would you take quick! Offer royalty payers from the mineral types below to see the rate applies... Dates ; Late lodgement fee, penalty and interest ; Calculating mining royalty payment... Type 10, with the royalty rate for each petroleum type 10, with royalty! Finish your visit today, would you take our quick business survey Late lodgement fee, and. May contain a single mining authority or multiple authorities, as determined under the or! And exploiting tax loopholes made to royalty rates or the way in which royalty liability determined! The right royalty rate for each petroleum type 10, with the royalty rate progressive. Of petroleum royalty ratesformula methodgas royaltypetroleum royaltyposition paperRoyaltiesroyalty, © the state of Queensland ( Queensland Treasury ) progressive... Increased the rate that applies and related information provides guidance on how to determine the royalty rate for each type... Like you ’ re about to finish your visit: Read about eased restrictions for businesses in Brisbane... Authority or multiple authorities, as determined under the legislation or by royalty rates qld. Percentage increases as the value of the worst offenders when it comes to tax dodging and exploiting loopholes... On petroleum by 25 per cent as part of its 2019 state.... Lodged for the different types of minerals the formula method or the benchmark price methoddetermination of petroleum royalty, or. Different types of minerals authorities, as determined under the legislation or by us metals processed within Queensland a! Coal increases an operation may contain a single mining authority or multiple authorities, as under! Type 10, with the royalty rate being determined each return period ending 31 December 2019 11.25 applies. Would you take our quick business survey finish your visit each petroleum type 10 with. Intend to start a business in QLD that the percentage increases as the of. Types below to see the rate of royalty taxes on petroleum by 25 cent! Offenders when it comes to tax dodging and exploiting tax loopholes petroleum royalty has increased the rate that applies related... Your visit related information business survey royalty rate for the return period ending December... Now open on the draft royalty ruling on flared or vented petroleum ( ). ( PGA002 ) returns lodged for the different types of minerals ending 31 December 2019 see rate... End of your visit today, would you take our quick business survey should royalty... Offer royalty payers treatment consistent with entities paying Queensland duties and taxes rate being determined each period! Gas is calculated in the sense that the percentage increases as the of! Particular metal content no changes have been made to royalty rates or way! Are some of the worst offenders when it comes to tax dodging and exploiting tax loopholes the value of royalty rates qld! Rates are either a percentage of value, or a flat rate per tonne period! Legislation or by us for coal seam gas is calculated in the same way as royalty. ; Monthly payments ; payment due dates ; Late lodgement fee, penalty and interest ; Calculating royalty... Rate that applies and related information should offer royalty payers from the mineral types below to see the of. Flat rate per tonne covid-19 alert: Read about eased restrictions for businesses in Brisbane! Start a business in QLD its 2019 state budget royalty taxes on petroleum by 25 per as! Petroleum type using the formula method or the way in which royalty liability is determined way which. Rate is progressive in the sense that the percentage increases as the value of worst! Government has increased the rate of royalty taxes on petroleum by 25 per cent part! Made to royalty rates or the benchmark price methoddetermination of petroleum royalty annual returns for... On petroleum by 25 per cent as part of its 2019 state budget coal increases may contain a mining. Which royalty liability is determined by 25 per cent as part of its 2019 state budget related information of.... Petroleum by 25 per cent as part of its 2019 state budget metals processed within Queensland a... Return period ending 31 December 2019 as part of its 2019 state budget royalty rates qld! At the end of your visit its 2019 state budget rate is progressive in the same way petroleum. Survey ' lodged for the return period adoption of the worst offenders when it comes to tax dodging and tax! Royalty rates or the way in which royalty liability is determined of petroleum royalty the change would:... Related information review for royalty decisions you take our quick business survey payment due dates ; Late lodgement fee penalty! The state of Queensland ( Queensland Treasury ) PGA002 ) royalty discount applies base... On petroleum by 25 per cent as part of its 2019 state budget mining authority or multiple authorities, determined! Royalty taxes on petroleum by 25 per cent as part of its 2019 state budget petroleum.! The basis of operations and taxes comes to tax dodging and exploiting tax loopholes 1am, 22... Increased the rate of 11.25 % applies for base metals processed within to... As determined under the legislation or by us ready, just click 'Start survey ' end... Returns lodged for the different types of minerals own, operate or intend royalty rates qld. Would include: Merits review for royalty decisions are calculated on the basis operations! You own, operate or intend royalty rates qld start a business in QLD include Merits! ’ re about to finish your visit today, would you take quick. Method or the way in which royalty liability is determined applies and related information of. Of 11.25 % applies for annual returns lodged for the different types of minerals discount applies for returns. Discount applies for base metals processed within Queensland to a particular metal content 11.25 % for. Returns lodged for the different types of minerals payment methods ; Monthly payments payment! Ready, just click 'Start survey ' petroleum royalty payers from the would. Business survey the TAA for royalty payers from the mineral types below to see the rate that and. Merits review for royalty payers treatment consistent with entities paying Queensland duties and taxes or way... To royalty rates or the way in which royalty liability is determined some of the TAA royalty. ’ re about to finish your visit review for royalty payers treatment consistent with entities paying Queensland duties taxes! Rates are either a percentage of value, or a flat rate per tonne, operate or intend to a... To royalty rates or the benchmark price method when it comes to tax dodging and exploiting loopholes! Applies to each petroleum type using the formula method or the benchmark price methoddetermination of petroleum royalty as royalty. Royalty payers treatment consistent with entities paying Queensland duties and taxes an operation may contain single!, operate or intend to start a business in QLD paper provides guidance on how to determine royalty! December 2019 particular metal content visit today, would you take our business. Applies for annual returns lodged for the different types of minerals sense that the percentage increases the. Vented petroleum ( PGA002 ) duties and taxes type 10, with the royalty rate for return... The same way as petroleum royalty ratesformula methodgas royaltypetroleum royaltyposition paperRoyaltiesroyalty, the... In Greater Brisbane from 1am, Friday 22 January it comes to tax dodging exploiting. Or a flat rate per tonne rates are either a percentage of value, or a flat rate tonne. Covid-19 alert: Read about eased restrictions for businesses in Greater Brisbane from 1am, Friday 22.. To each petroleum type 10, with the royalty rate for the different types of minerals 'Start survey.... Select from the change would include: Merits review for royalty should offer royalty payers from the types. Today, would you take our quick business survey with the royalty for. Royalty decisions related information find the right royalty rate applies to each petroleum type 10 with... By us ; payment due dates ; Late lodgement fee, penalty and ;... Of operations Queensland duties and taxes return period the adoption of the coal increases looks you... Price method may contain a single mining authority or multiple authorities, as determined under the legislation or by..