Offshore Minerals (Exploration Licence Fees) Act 1981

Administered by Department of Industry, Science and Resources

Legislation au C2004A02460 In force Act

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Act No. 83 of 1981 as amended

This compilation was prepared on 4 October 2000
taking into account amendments up to Act No. 29 of 1994

The text of any of those amendments not in force
on that date is appended in the Notes section

The operation of amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section

Prepared by the Office of Legislative Drafting,
Attorney‑General’s Department, Canberra

Contents

1 Short title [see Note 1]...........................

2 Commencement [see Note 1].......................

3 Interpretation.................................

4 Exploration licence fees..........................

4A Holder liable to pay fee...........................

4B Time for payment..............................

5 Penalty for late payment..........................

6 Fees and penalties debts due to Commonwealth............

7 Regulations..................................

Notes

An Act to provide for the payment of fees in respect of exploration licences under the Offshore Minerals Act 1994

1 Short title [see Note 1]

This Act may be cited as the Offshore Minerals (Exploration Licence Fees) Act 1981.

2 Commencement [see Note 1]

This Act shall come into operation on the day on which the Minerals (Submerged Lands) Act 1981 comes into operation.

3 Interpretation

(1) In this Act:

year, in relation to the term of an exploration licence, means:

(a) the period of 12 months commencing on (and including) the day on which the provisional grant of the licence is properly accepted; or

(b) a period of 12 months commencing on (and including) an anniversary of that day; or

(i) commences on (and includes):

(A) the day on which the provisional grant of the licence is properly accepted; or

(B) an anniversary of that day; and

(ii) ends at the end of the term of the licence.

(2) Expressions used in this Act that are used in the Offshore Minerals Act 1994 have, unless the contrary intention appears, the same meanings as they have in that Act.

4 Exploration licence fees

(1) An exploration licence holder must pay a fee to the Designated Authority in respect of each year of the term of the licence.

(2) Subject to subsection (3), the amount of the fee is to be calculated in accordance with the regulations.

(3) The amount of the fee for a licence for a year is not to exceed whichever is the greater of:

(a) $2,000; or

(b) the amount obtained by multiplying $100 by the number of blocks covered by the licence at the beginning of the year.

4A Holder liable to pay fee

(1) The licence holder is liable to pay the fee.

(2) If the licence has 2 or more holders, the holders are jointly and severally liable to pay the fee.

4B Time for payment

The fee for a year becomes payable one month after the day on which the year begins.

5 Penalty for late payment

Where the liability of an exploration licence holder to pay a fee referred to in section 4 is not discharged at or before the time when the fee is payable, there is payable to the Designated Authority by the holder an additional amount calculated at the rate of one‑third of 1% per day upon the amount of the fee from time to time remaining unpaid, to be computed from the time when the fee became payable until it is paid.

6 Fees and penalties debts due to Commonwealth

(1) A fee under section 4, and an amount payable under section 5, are debts due by the licence holder to the Commonwealth and are recoverable in a court of competent jurisdiction.

(2) Fees and other amounts referred to in sub‑section (1) received by the Designated Authority shall be deemed to be received by the Designated Authority on behalf of the Commonwealth.

7 Regulations

The Governor‑General may make regulations prescribing matters:

(a) required or permitted by this Act to be prescribed; or

(b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.

Notes to the Offshore Minerals (Exploration Licence Fees) Act 1981

Note 1

The Offshore Minerals (Exploration Licence Fees) Act 1981 as shown in this compilation comprises Act No. 83, 1981 amended as indicated in the Tables below.

Table of Acts

Act	Number and year	Date of Assent	Date of commencement	Application, saving or transitional provisions
Minerals (Submerged Lands) (Exploration Permit Fees) Act 1981	83, 1981	18 Jun 1981	1 Feb 1990 (see Gazette 1989, No. S387)
Offshore Minerals (Consequential Provisions) Act 1994	29, 1994	25 Feb 1994	(a)	—

(a) The Offshore Minerals (Exploration Licence Fees) Act 1981 was amended by the Offshore Minerals (Consequential Provisions) Act 1994, section 2 of which provides as follows:

2. This Act commences immediately after the Offshore Minerals Act 1994 commences.

The Offshore Minerals Act 1994 came into operation on 25 February 1994.

Table of Amendments

ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted
Provision affected	How affected
Title....................	am. No. 29, 1994
S. 1....................	am. No. 29, 1994
Ss. 3, 4.................	rs. No. 29, 1994
Ss. 4A, 4B...............	ad. No. 29, 1994
Ss. 5, 6.................	am. No. 29, 1994
S. 7....................	ad. No. 29, 1994

Overview

The Offshore Minerals (Exploration Licence Fees) Act 1981 was enacted to address the need for a structured financial framework for the payment of exploration licence fees under the Offshore Minerals Act 1994. This Act was introduced to establish a formal process for the assessment and payment of fees associated with exploration licences in Australia's offshore mineral resources. The enactment body was the Parliament of Australia, with the Act being brought into operation on the same day as the Minerals (Submerged Lands) Act 1981. The primary policy objective of the Act is to ensure that exploration licence holders contribute to the costs associated with the management and regulation of offshore mineral exploration activities. The Act stipulates that exploration licence holders must pay a fee to the Designated Authority for each year of the licence term, with the fee amount determined by regulation. The Act also outlines the consequences for late payment, including additional penalties, and clarifies that any fees and penalties are debts due to the Commonwealth and recoverable through appropriate legal channels. The Governor-General is empowered to make regulations necessary for the effective implementation of the Act, thereby ensuring a systematic and transparent process for fee collection and management.

Scope and Application

The Offshore Minerals (Exploration Licence Fees) Act 1981 applies to holders of exploration licences under the Offshore Minerals Act 1994, requiring them to pay annual fees to the Designated Authority. This Act applies to entities that hold such exploration licences and mandates the payment of fees calculated according to the regulations, which cannot exceed a specified amount. The Act applies to the Commonwealth of Australia and the geographic scope includes all offshore areas governed by the Offshore Minerals Act 1994. Any additional amounts due for late payment of these fees are also recoverable as debts due to the Commonwealth. The Act allows for the creation of regulations by the Governor-General to further prescribe matters necessary or convenient to carry out the provisions of the Act. Notably, this Act does not specify any exclusions or exemptions from its application, but rather extends its application through subordinate regulations as necessary.

Key Provisions

The Offshore Minerals (Exploration Licence Fees) Act 1981 (sections 4 and 4A) mandates that an exploration licence holder must pay a fee to the Designated Authority for each year of the licence term. The fee amount is determined according to the regulations and cannot exceed the greater of $2,000 or $100 multiplied by the number of blocks covered by the licence at the beginning of the year (section 4(3)). If the licence has two or more holders, they are jointly and severally liable for the fee (section 4A(2)). The fee for a year becomes payable one month after the start of the year (section 4B). The Act imposes several obligations on the exploration licence holders. They must ensure that the fee is paid to the Designated Authority for each year of the licence term (section 4). If the fee is not paid by the time it is due, the holder must pay an additional penalty, calculated at the rate of one-third of 1% per day on the unpaid amount from the date the fee became payable until it is paid (section 5). Any fees or penalties owed under the Act are debts due to the Commonwealth and can be recovered in a court of competent jurisdiction (section 6). Failure to comply with the fee payment requirements can result in several consequences. The primary consequence is the imposition of a daily penalty, calculated at the rate of one-third of 1% per day on the unpaid fee amount (section 5). Furthermore, any fees or penalties that remain unpaid can be pursued as debts owed to the Commonwealth and are recoverable through legal action (section 6). The maximum penalty for late payment is not explicitly stated in the Act, but the penalty is calculated daily based on the unpaid fee amount.

Area of Law: Environmental Law
Instrument: Act
Concepts: Definitions & Interpretation; Offence Provisions; Fees and Penalties; Regulatory Standards; Reporting & Disclosure Obligations; Compliance Obligations

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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