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Transitional arrangements for petroleum royalty

For petroleum produced from 1 October 2020, the volume model is used to calculate petroleum royalty.

To help with the volume model, transitional arrangements are provided in the:

Under the transitional arrangements:

  • the annual return period for petroleum produced before 1 October 2020 ends on 30 September 2020
  • the royalty for all liable petroleum produced but not disposed of before 1 October 2020 must be paid at a rate of 12.5% of the wellhead value of petroleum.

Depending on your circumstances:

  • If your annual return period starts on 1 July, then the annual return period is taken to start on 1 July 2020 and end on 30 September 2020.
  • If your annual return period starts on 1 January, then the annual return period is taken to start on 1 January 2020 and end on 30 September 2020.

This annual return for the period ending 30 September 2020 is due on 31 December 2020. You can lodge this return on OSR Online or by completing the petroleum royalty return (Form R02.1). This is the final annual return that will be lodged under the previous wellhead value model.

Under the transitional arrangements for the new volume model, if you are required to lodge annually the 2020-21 financial year will be taken to start on 1 October 2020 and end on 30 June 2021.

You can still apply for a petroleum royalty decision for petroleum produced before 1 October 2020. Phone the Office of State Revenue on 1300 300 734.

As part of these transitional arrangements, so long as you have made a reasonable attempt to comply with the new volume model when completing your first 2 quarterly returns after 1 October 2020, any interest and penalties relating to these return periods (i.e. quarterly returns for the periods ending 31 December 2020 and 31 March 2021) will be remitted in full. Contact us to discuss a reassessment.

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.