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.