Offshore Minerals (Exploration Licence Fees) Regulations 1994 No. 49
EXPLANATORY STATEMENT
STATUTORY RULES 1994 No. 49
Issued by the Authority of the Minister for Resources
OFFSHORE MINERALS (EXPLORATION LICENCE FEES) ACT 1981
OFFSHORE MINERALS (EXPLORATION LICENCE FEES) REGULATIONS
Section 7 of the Offshore Minerals (Exploration Licence Fees) Act 1981 (the Act) provides that the Governor- General may make regulations prescribing matters either required, permitted, necessary or convenient for the purposes of the Act.
Subsection 4(1) of the Act provides that an exploration licence holder must pay fee for each year of the term of the licence. Subsection 4(2) provides that the amount of the fee is to be calculated in accordance with the regulations. Subsection 4(3) provides that the amount of the fee is not exceed which ever is the greater of $2,000 or $100 for each block covered by the licence at the beginning of the year.
The purpose of the fee is to recover the costs of administering the Offshore Minerals legislation. In accordance with the Offshore Constitutional Settlement agreed to by the Commonwealth and the States at the Premiers' Conference in June 1979 the money collected from the fee will be paid by the Commonwealth to the States and the Northern Territory to recompense them for administering the legislation on behalf of the Commonwealth.
The proposed Regulations prescribe the amount of the fee.
Details of the proposed Regulations are as follows:
Regulation 1 provides a reference name for the Regulations.
Regulation 2 defines the terms used in the Regulations.
Regulation 3 provides that the annual fee will be $600 or $20 for each block covered by the licence, whichever is the greater at the beginning of the year.
Overview
The Offshore Minerals (Exploration Licence Fees) Regulations 1994, made under the authority of the Minister for Resources, were enacted to provide detailed provisions for the collection of fees under the Offshore Minerals (Exploration Licence Fees) Act 1981. This Act was designed to address the need to recover the costs associated with administering offshore mineral exploration activities and to facilitate the financial compensation to the States and Northern Territory for their role in administering the legislation on behalf of the Commonwealth. The regulations were established in line with the Offshore Constitutional Settlement, which was agreed upon in June 1979, ensuring that the financial burden of such administration is shared appropriately. The primary objective of these regulations is to determine the precise amount of the annual fee payable by exploration licence holders, ensuring that the fee structure aligns with the administrative costs and fairly compensates the states involved.
Scope and Application
The Offshore Minerals (Exploration Licence Fees) Regulations 1994 applies to entities holding exploration licences for offshore minerals, as defined under the Offshore Minerals (Exploration Licence Fees) Act 1981. These entities are required to pay an annual fee for each year of the licence term, with the amount of the fee calculated in accordance with the regulations. The fee is set to recover the costs of administering the Offshore Minerals legislation, with the collected funds to be distributed to the states and the Northern Territory to compensate them for administering the legislation on behalf of the Commonwealth. The Act and its regulations have a jurisdictional reach across the Commonwealth of Australia, in line with the Offshore Constitutional Settlement. The fee is capped at the greater of $2,000 or $100 for each block covered by the licence at the beginning of the year, with the specific amount of the annual fee prescribed by Regulation 3 of the Regulations. The application of the Act and its regulations may be extended or restricted through subordinate instruments as authorised by the Act.
Key Provisions
The key operative sections of the Offshore Minerals (Exploration Licence Fees) Regulations 1994 (the Regulations) establish the fees that exploration licence holders must pay annually. Section 7 of the Offshore Minerals (Exploration Licence Fees) Act 1981 (the Act) allows for regulations to be made, and section 4(1) of the Act specifies that these fees are required to be paid by the exploration licence holders each year. The amount of the fee is stipulated to be calculated in accordance with the Regulations (section 4(2) of the Act), and it must not exceed the greater of $2,000 or $100 for each block covered by the licence at the beginning of the year (section 4(3) of the Act). Regulation 3 of the Regulations sets the annual fee at $600 or $20 for each block, whichever is greater.
The Regulations impose several obligations on the parties involved. Firstly, exploration licence holders must ensure they pay the prescribed annual fee as outlined in the Regulations. The fee amount is determined by comparing the total number of blocks covered by their licence at the beginning of each year, with the calculation being the greater of $600 or $20 per block. This ensures that the fees paid reflect the extent of the licence and the associated administrative costs.
In terms of the consequences for non-compliance, the Regulations do not explicitly detail offences or penalties within the provided text. However, under the Act, failure to pay the prescribed fees could potentially lead to legal consequences such as fines or penalties as stipulated by the relevant legislation governing the administration and enforcement of fees under the Offshore Minerals framework. While the exact penalties are not specified in the Regulations themselves, they would typically align with the broader legal context in which the Act operates, including any associated administrative and enforcement provisions.