Taxes, duties, levies and royalties
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Petroleum

Lodging your petroleum royalty return

If you hold a petroleum title, you must pay royalty on petroleum that is recovered from the area within that title.

A petroleum title means an exploration licence, assessment lease, production lease or special prospecting authority in force under the Petroleum (Onshore) Act 1991.

The returns and payment are due on or before the last day of the month following the return period. For example, the royalty return and payment for petroleum recovered during the month of February is to be made no later than 31 March.

Lodge your royalty returns

Find out more about royalty online services and lodging your return.

Learn more about lodging your petroleum royalty return online (PDF, 2.1 MB).

How to calculate the royalty payable

When completing your petroleum royalty return you need to include the following.

ItemDescription
Rate of royalty If petroleum is recovered under a petroleum title or under a mining lease for coal, the prescribed annual rate of royalty is 10% of the value at the well-head of the petroleum.
Value at the well-head of the petroleum The value at the well-head is an amount determined by the Minister for Resources. You must contact the Department of Planning and Environment, Resources and Geoscience for a determination of that value.
Reduction of the royalty rate Section 86 of the Petroleum (Onshore) Act 1991 provides certain circumstances where a reduction of the royalty rate may apply.
Royalty not payable Section 87 of the Petroleum (Onshore) Act 1991 provides certain circumstances where royalty is not payable.
Refunds, Rebates and Community Benefits Funds If you have made contributions to an authorised fund, you may be eligible for a rebate or refund of royalty.

Rebates and refunds of royalty are provided for under clauses 46, 47 & 48 of the Petroleum (Onshore) Regulation 2016.

For more information see section 91A of the Petroleum (Onshore) Act 1991 and Part 8, Division 2 of the Petroleum (Onshore) Regulation 2016.

Applications to establish an authorised local Community Benefits Fund can be made to the Minister for Resources.

Late payment of royalty

A tax default occurs if royalty is not paid in full by the due date.

  • When tax defaults occur, interest and penalties are applied.
  • Tax default is defined in the Taxation Administration Act 1996. It means a failure by a taxpayer (for royalty purposes, this is the holder of the mining lease/sub-lease or petroleum title) to pay, in accordance with a taxation law, the whole or part of tax that the taxpayer is liable to pay.

If you cannot pay your royalty in full by the due date, please contact Tax debt management.