COVID-19 alert: Read about changed restrictions for businesses in Greater Brisbane from 6pm, Monday 11 January.
Reviewing your royalty affairs
We have several resources to help you understand your royalty obligations.
- Public rulings for royalty liabilities arising on or after 1 October 2020
- Royalty rulings for:
- mineral liabilities (14 October 2015 to 30 September 2020)
- petroleum liabilities (11 January 2016 to 30 September 2020).
- Ministerial determinations (which must be read subject to the royalty rulings) for:
- mineral liability before 14 October 2015
- petroleum liability before 11 January 2016.
For petroleum produced on or before 30 September 2020, you can read about our treatment of claims for depreciation deductions in previous royalty return periods. There are transitional arrangements for petroleum produced but not disposed of before 1 October 2020.
Learn more about calculating royalty for petroleum produced from 1 October 2020.
To help you determine if you have a shortfall for a previous royalty return period, see the following categories for some common issues you should consider.
All minerals
Issue | Description/Example |
---|---|
Data-entry error |
|
Computational error | Mathematical error when royalty rate or royalty payable was calculated |
Failing to include all relevant sales/disposals | Royalty return does not contain details of all minerals sold, disposed of or used in a return period, including those that are:
|
Declaring revenue or expenses in wrong return period | Sales occurring, or expenses incurred, around the end of a return period are not recorded in the royalty return for the period, but are instead recorded in a royalty return for a subsequent period |
Failure to obtain ministerial value determination | Failing to obtain a gross value royalty decision where required under legislation, especially in relation to related-party transactions or marketing arrangements |
Claiming inappropriate deductions | Deductions claimed that are:
|
Incorrect treatment of currency conversions |
|
Coal
Issue | Description/Example |
---|---|
Incorrect treatment of export and domestic coal | Export coal (i.e. coal sold or disposed of for consumption, or used, outside Queensland) recorded in royalty returns as domestic coal (i.e. coal sold or disposed of for consumption, or used, inside Queensland) and vice versa |
Incorrect royalty rate |
|
Incorrect calculation of gross value | Gross value:
|
Incorrect deduction of port operating costs |
|
Incorrect deduction of assay costs | Deduction claimed for assay costs that are not directly related to the sale of coal |
Incorrect deduction of port infrastructure costs |
|
Incorrect deduction of levies | Deduction claimed for:
|
Incorrect deduction of counter trade costs | Deduction claimed for commissions payable to agents for activities other than a counter trade arrangement |
Incorrect deduction of bank commissions | Deduction claimed for bank charges other than commissions in relation to issuing letters of credit for export shipments |
Other incorrect claiming of deductions |
|
Misallocation of private royalties | Failing to:
|
Base and precious metals
Issue | Description/Example |
---|---|
Incorrect royalty rate used |
|
Incorrect claiming of payable metal deduction | Discount claimed other than in accordance with: |
Incorrect claiming of processing discount |
|
Failure to include all relevant payments | Failing to make an appropriate adjustment in a particular return period to reflect the final invoice amount payable for a sale in a previous return |
Petroleum produced before 1 October 2020
Issue | Description/Example |
---|---|
Data entry error |
|
Computational error | Mathematical error when royalty payable was calculated |
Failing to include all relevant sales/disposals | Royalty return does not contain details of all petroleum disposed of in a return period, including petroleum that is:
|
Declaring revenue or expenses in wrong return period | Sales occurring, or expenses incurred, around the end of a return period are not recorded in the royalty return for the period, but are instead recorded in a royalty return for a subsequent period |
Incorrect treatment of currency conversions |
|
Failure to lodge a return when required |
|
Error in treatment of negative wellhead value | Negative wellhead value:
|
Failure to pay royalty on petroleum used | Royalty not paid on petroleum that the producer uses for purposes other than the production of petroleum from the tenure |
Failure to pay petroleum royalty on gas that is flared or vented | Royalty not paid on petroleum that is flared or vented, other than as part of testing for the presence of petroleum during the drilling of a well or as part of production testing |
Failure to pay petroleum royalty on coal seam gas or natural gas production testing | Royalty not paid on gas flared or vented during production testing:
|
Incorrect claiming of deduction for pipeline tariff | Deduction claimed for a tariff that is not reasonable on a commercial basis |
Incorrect claiming of deduction for processing toll | Deduction claimed for a toll that has not been calculated on a commercial basis or an alternative basis approved by the Minister |
Incorrect claiming of deduction for operating costs |
|
Other incorrect claiming of deductions |
|
- Last reviewed: 1 Oct 2020
- Last updated: 1 Oct 2020
I want to...
Contact
Office of State Revenue
- Call 1300 300 734 (Australia) or
+61 7 3179 2500 (overseas) - Send an email using our online enquiry form.