COVID-19 alert: Read about eased restrictions for businesses in Greater Brisbane from 1am, Friday 22 January.

Petroleum royalty rates from 1 October 2020

The petroleum royalty rates are set out in Chapter 6, Part 3 of the Petroleum and Gas (Royalty) Regulation 2004.

You must use the average sales price to determine the applicable royalty rate for all petroleum in a particular classification in a royalty return period. The average sales price is either:

  • worked out with a formula that uses relevant sales data (based on actual sales revenue and any deemed sales revenue if appropriate)

or

  • equal to the benchmark price for the petroleum type for the return period.

You may elect to use the benchmark price for a particular petroleum type as the average sales price on an ongoing basis by making a declaration in your petroleum royalty return. To stop using the benchmark price, complete the application to end benchmark election (Form R2.10).

The average sales price, benchmark price and royalty rate are rounded down to 4 decimal places in the calculations. The units of measurement are:

  • gigajoules (GJ) for gas
  • barrels (bbl) for liquid petroleum.

Domestic gas

Average sales price Royalty payable per GJ
Up to and including $3/GJ 0.02 cents/GJ for each 1 cent/GJ more than $0/GJ
Over $3/GJ and up to and including $8/GJ 6 cents/GJ plus 0.08 cents/GJ for each 1 cent/GJ more than $3/GJ
More than $8/GJ 46 cents/GJ plus 0.10 cents/GJ for each 1 cent/GJ more than $8/GJ

Supply gas

Average sales price Royalty payable per GJ
Up to and including $3/GJ 0.05 cents/GJ for each 1 cent/GJ more than $0/GJ
Over $3/GJ and up to and including $8/GJ 15 cents/GJ plus 0.10 cents/GJ for each 1 cent/GJ more than $3/GJ
More than $8/GJ 65 cents/GJ plus 0.125 cents/GJ for each 1 cent/GJ more than $8/GJ

Project gas

Average sales price Royalty payable per GJ
Up to and including $9/GJ 0.03 cents/GJ for each 1 cent/GJ more than $0/GJ
Over $9/GJ and up to and including $14/GJ 27 cents/GJ plus 0.09 cents/GJ for each 1 cent/GJ more than $9/GJ
More than $14/GJ 72 cents/GJ plus 0.125 cents/GJ for each 1 cent/GJ more than $14/GJ

Liquid petroleum (oil and condensate)

Average sales price Royalty payable per bbl
Up to and including $50/bbl 0.03 cents/bbl for each 1 cent/bbl more than $0/bbl
Over $50/bbl and up to and including $100/bbl $1.50/bbl plus 0.115 cents/bbl for each 1 cent/bbl more than $50/bbl
More than $100/bbl $7.25/bbl plus 0.125 cents/bbl for each 1 cent/bbl more than $100/bbl

Benchmark price

Petroleum type Benchmark price for a royalty return period
Domestic gas The firm End of Day Wallumbilla Benchmark Price averaged over the royalty return period
Supply gas 0.09 bbl/GJ multiplied by the daily Europe Brent Spot Price FOB ($/bbl) averaged over the relevant period
Project gas 0.135 bbl/GJ multiplied by the daily Europe Brent Spot Price FOB ($/bbl) averaged over the relevant period
Liquid petroleum The daily Europe Brent Spot Price FOB ($/bbl) averaged over the royalty return period

We will publish the benchmark price for each return period after the end of that period.

We use the daily WM/Reuters Australian Fix 10.00am bid price to determine the average hedge settlement rate for the royalty return period in converting the daily Europe Brent Spot Price FOB benchmark from US dollars into Australian dollars.

Relevant period

For supply gas and project gas, the relevant period for a royalty return period is:

  • for quarterly returns – the 3-month period starting on the day that is 4 months immediately before the start of the royalty return period. The relevant 3-month period for quarterly returns ending on
    • 31 March is 1 September to 30 November of the previous calendar year
    • 30 June is 1 December of the previous calendar year to the end of February of the same calendar year
    • 30 September is 1 March to 31 May of the same calendar year
    • 31 December is 1 June to 31 August of the same calendar year
  • for financial year returns – the 12-month period starting on the day that is 4 months immediately before the start of the royalty return period. The relevant 12-month period for an annual return is 1 March of the previous calendar year to the end of February of the same calendar year.

Also consider…

Contact

Office of State Revenue

  • Call 1300 300 734 (Australia) or
    +61 7 3179 2500 (overseas)
  • Send an email using our online enquiry form.