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 . 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. 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. If the average price is $100 or less, the rate is $1.25 … 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. 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 … 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, … 16. 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. Paying mining and petroleum royalties. Comments are now open on the draft royalty ruling on flared or vented petroleum (PGA002). Draft royalty ruling. 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 . The current royalty rates are listed below. Are you ready to start the survey now? Royalty … 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. The State of Queensland royalty is 7% of the value of coal if the average coal price is $100 or less. amount of royalty? Select from the mineral types below to see the rate that applies and related information. Export coal. 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. 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. Benefits for royalty payers from the change would include: Merits review for royalty decisions. See Table 2 for the Queensland royalty rates. Royalty rates. No changes have been made to royalty rates or the way in which royalty liability is determined. 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 … 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. 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. 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 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. petroleum royalty rate, and data in relation to all relevant sales must be used in the average sales price formula. Thanks! 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. Mining corporations are some of the worst offenders when it comes to tax dodging and exploiting tax loopholes. Payment methods; Monthly payments; Payment due dates; Late lodgement fee, penalty and interest; Calculating mining royalty. Mineral royalty framework. 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. 9 15. 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. 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. 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. 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 … Royalty liabilities are calculated on the basis of operations. The adoption of the TAA for royalty should offer royalty payers treatment consistent with entities paying Queensland duties and taxes. 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). Definitions . 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 . 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. Rates are either a percentage of value, or a flat rate per tonne. The Queensland royalty rate is progressive in the sense that the percentage increases as the value of the coal increases. 13. 1. 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 … 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. 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 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. 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. (c) for section 590(2)(c) of the Act, the rate at which petroleum royalty is payable. Find the right royalty rate for the different types of minerals. 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. is coal that is sold or disposed of for consumption, or used outside Queensland (either in Calculating the correct amount of royalt… 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 Sections 145 (domestic gas), 148A (supply gas), 148F (project gas) and 148K (liquid petroleum) of the Regulation . Speaking at the Bowen Basin Mining Club, the head of Queensland’s peak resource industry body said industry fully … 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. Mining corporations are some of the worst offenders when it comes to tax dodging and exploiting tax loopholes. 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. Sections 146 (domestic gas), 148B (supply gas), 148G (project gas) and 148L (liquid petroleum) of the Regulation . 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'. 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. 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) Royalty for coal seam gas is calculated in the same way as petroleum royalty. When you're ready, just click 'Start survey'. "Before COVID-19 hit, the Queensland Government confirmed the royalty rates on coal and metals would remain stable until 2022, and for petroleum until … (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, … This paper provides guidance on how to determine the royalty rate for each petroleum type using the formula method or the benchmark price method. Do you own, operate or intend to start a business in QLD? 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. royalty. 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. 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 . The current royalty rates are listed below. Liability; Mineral rates; Gross value; Deductions; Royalty-free threshold; Processing … It looks like you’re about to finish your visit. Calculating the correct amount of royalty is important because we will impose a penalty of 75% of any understated liability. 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). Fair royalty rates. The petroleum royalty rate you use to calculate your liability is set out in section 147C of the Petroleum and Gas (Royalty) Regulation 2004. 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. Fair royalty rates. An operation may contain a single mining authority or multiple authorities, as determined under the legislation or by us. Sections 147 (domestic gas), … 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 … A different royalty rate applies to each petroleum type 10, with the royalty rate being determined each return period. At the end of your visit today, would you take our quick business survey? Updated: 30 Nov 2020 Coal royalties would not be increased in Queensland's next budget “in exchange” for millions of dollars in contributions from mining giants to a … 15. 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. However, the royalty legislation would continue to govern when a liability arises, the rates of tax, and the exemptions and concessions that may apply. It … COVID-19 alert: Read about eased restrictions for businesses in Greater Brisbane from 1am, Friday 22 January. Royalty rates. 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