Resources for petroleum produced from 1 October 2020
For petroleum produced from 1 October 2020, a new royalty model applies in Queensland. Under the new volume model, royalty is payable on the volume of liable petroleum produced by you during a return period.
These position papers will help you calculate petroleum liability under the volume model:
- Classification of petroleum
This paper explains the classification of liable petroleum as liquid petroleum, domestic gas, supply gas and project gas.
- Measurement of petroleum
This paper explains the measurement of volumes of petroleum to determine royalty.
- Determination of petroleum royalty rates
This paper provides guidance on how to determine the royalty rate for each petroleum type, including how to determine the average sales price using the formula method or the benchmark price method.
Swap arrangements may be relevant for determining the classification of gas and average sales price for petroleum.
Read the Commissioner of State Revenue's determinations on swap arrangements for:
- producers or resellers of a producer - swap arrangements from 1 September 2021
- producers - swap arrangements from 1 October 2020 to 31 August 2021.
Forms for volume model
When calculating your petroleum royalty rates under the volume model, you may elect in your return form to use the benchmark price for a particular petroleum type as the average sales price on an ongoing basis. You can do this in the petroleum royalty return. To end a benchmark election, you must complete an application to end benchmark election (Form R2.10).
Non-tenure holder arrangements
Under the volume model, non-tenure holders may apply to be treated as a petroleum producer in relation to a stated amount of petroleum produced under a joint venture tenure for royalty purposes. Complete the application by non-tenure holder to be treated as a petroleum producer (Form R02.11).
To end this arrangement:
- a non-tenure holder must complete the application by non-tenure holder to end election periodic (Form R02.12)
- a tenure holder must complete the application by tenure holder to end election period for non-tenure holder (Form R02.13).