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Mineral Resources Tasmania

Royalties (under Schedule 1, GST Exempt) AUD

Royalty is payable under Section 102 of the Mineral Resources Development Act 1995 (MRDA) in accordance with Part 3 of the Mineral Resources Regulations 2016 (MRR). Royalty is payable to the Minister in respect of any mineral recovered from Crown land, and in respect of any mineral owned by the Crown which is recovered from private land.

Royalties rates are set for some minerals under the regulations, these generally being:

  • construction materials (assessed on a per tonne basis);
  • industrial minerals (assessed on a per tonne basis);
  • petroleum; and
  • coal seam gas.

The leaseholder is required to complete a quarterly return showing the quantity sold and the royalty due. The completed return and the royalty due are required to be received no later than 30 days after the end of the quarter.

For minerals other than those defined above, Tasmania operates under a two-tiered system where royalty is paid as a percentage of net sales and of profit. The formula for the payment of royalty is specified in Regulation 7 of the MRR. Royalty is payable at the rate of 1.9% of Net Sales, plus profit. A rebate of up to 20% is available for the production of a metal within the State. Maximum royalty payable is 5.35% of net sales.

Royalty becomes due within 30 days of the end of the quarter.

Royalty is payable on an annual basis in quarterly instalments, with the quarters being determined in accordance with the mine's financial year. No prior year losses are carried forward for the calculation.

All detail in relation to the calculation of royalty is contained within the MRDA and the MRR. These can be referenced online at: http://www.thelaw.tas.gov.au

Full Royalty Rates can be found here.

Royalty Deferral

The Mineral Resources Development Act 1995, Section 102AA allows for deferral of royalty to assist a company that is experiencing short term cash flow issues. The criteria by which a deferral can be sought are outlined in the Mineral Resources Development (Deferral of Royalty) Order 2014. Information relating to this order is available here.

An application for deferral should be addressed to the Treasurer and sent care of the Director of Mines. The application should be supported by detailed financial information. The Director of Mines will forward the application to the Treasurer.

For enquiries on royalties contact:

Robert Willis (Ph: 03 6477 7097)