Offshore Minerals (Fees) Regulations 2018

Administered by Department of Industry, Science and Resources

Legislation au F2018L01245 Regulations In force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

Issued by the Authority of the Minister for Resources and Northern Australia,
Senator the Hon Matt Canavan

Offshore Minerals Act 1994

Offshore Minerals (Fees) Regulations 2018

Purpose and Operation

The Offshore Minerals Act 1994 (the Act) provides the legal framework for the exploration for, and mining of, minerals (other than petroleum) in offshore areas.

Section 440 of the Act provides that the Governor-General may make regulations prescribing matters either required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

A number of provisions of the Act provide for application fees and other administrative fees to be prescribed by regulations. The purpose of the fees is to compensate the Designated Authorities (state and Northern Territory governments) for the costs of day-to-day administration of the Offshore Minerals legislation on behalf of the Commonwealth.

The Offshore Minerals (Fees) Regulations (the sunsetting Regulations), which are due to sunset on 1 October 2018, prescribe fees for the purposes of the relevant provisions of the Act.

The Department of Industry, Innovation and Science (the department) has conducted a review of the sunsetting Regulations and determined that they should be remade without substantive change. To date, only a few licences have been granted under the Act. It is not proposed to increase the fees prescribed under the sunsetting Regulations as the states and the Northern Territory currently incur negligible costs in administering mining activities in Commonwealth offshore areas. Fees have been determined based on estimates of the level of effort required by Designated Authorities in assessing applications and undertaking other administrative tasks. The current fee amounts are not considered to be onerous in the context of overall costs incurred in offshore mining operations.

The purpose of the Offshore Minerals (Fees) Regulations 2018 (the 2018 Regulations) is to remake the sunsetting Regulations in substantially the same form with amendments to ensure consistency with current drafting practices, including simplifying language.

Subsection 33(3) of the Acts Interpretation Act 1901 relevantly provides that where an Act confers a power to make an instrument of a legislative character (including regulations), the power shall be construed as including a power exercisable in the like manner and subject to the like conditions to repeal, rescind, revoke, amend, or vary any such instrument. The 2018 Regulations also repeal the sunsetting Regulations.

A provision-by-provision description of the 2018 Regulations is set out at Attachment A.

Consultation

State and Northern Territory governments were consulted during the drafting of the 2018 Regulations. Jurisdictions were advised of the proposal to remake the sunsetting Regulations with no substantive change at the March 2018 meeting of the Upstream Petroleum Resources Working Group of the Council of Australian Governments’ Energy Council, with comments sought by 11 April 2018. No comments were received.

The offshore minerals industry in Australia is relatively small. In order to consult with the industry, and ensure broader awareness of the proposal to remake the sunsetting Regulations, information about the proposal and an invitation to comment were published on the department’s Consultation Hub. Interested stakeholders were also advised through an issue of Australian Petroleum News. Comments in relation to the proposal were sought by 13 April 2018. One submission was received; however, the content of the submission related to matters outside the scope of the sunsetting Regulations.

Regulatory Impact

The Office of Best Practice Regulation (OBPR) has confirmed that a Regulation Impact Statement is not required for the 2018 Regulations. The OBPR reference is ID 22729.

Statement of Compatibility with Human Rights

Subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011 requires the rule-maker of a legislative instrument to which section 42 (disallowance) of the Legislation Act 2003 applies to cause a statement of compatibility to be prepared in respect of that legislative instrument. A Statement of Compatibility with Human Rights has been prepared to meet that requirement and is set out at Attachment B.


Attachment A

Details of the Offshore Minerals (Fees) Regulations 2018

Section 1 – Name

This section provides that the name of the instrument is the Offshore Minerals (Fees) Regulations 2018 (the 2018 Regulations).

Section 2 – Commencement

This section provides that the 2018 Regulations commence on the day after the instrument is registered on the Federal Register of Legislation.

Section 3 – Authority

This section provides that the 2018 Regulations are made under the Offshore Minerals Act 1994 (the Act). The applicable provision that provides authority is subsection 440(1) of the Act.

Section 4 – Schedules

This section is a machinery provision that enables the Schedule to the 2018 Regulations to operate according to its terms.

Section 5 – Definitions

This section provides for the definitions of terms used in the 2018 Regulations.

Section 6 – Amounts of fees

This section prescribes application and other administration fee amounts for the purposes of various provisions of the Act.

Schedule 1 – Repeals

This Schedule provides that the whole of the sunsetting Offshore Minerals (Fees) Regulations is repealed.

 

Attachment B

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Offshore Minerals (Fees) Regulations 2018

These Regulations are compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

The Offshore Minerals (Fees) Regulations 2018 (2018 Regulations) are a legislative instrument for the purposes of the Legislation Act 2003.

The 2018 Regulations are prepared under section 440 of the Offshore Minerals Act 1994 (the Act), and repeal and remake the Offshore Minerals (Fees) Regulations (sunsetting Regulations), due to sunset on 1 October 2018.

The sunsetting Regulations prescribe application and other administration fee amounts for the purposes of various provisions of the Act. A review of the sunsetting Regulations determined that the Regulations are still required. The 2018 Regulations remake the sunsetting Regulations without substantive change.

Human rights implications

The 2018 Regulations do not engage any of the applicable rights or freedoms.

Conclusion

The 2018 Regulations are compatible with human rights, as they do not raise any human rights issues.

 

Senator the Hon Matt Canavan

Minister for Resources and Northern Australia

 

Overview

The Offshore Minerals Act 1994 was enacted to establish a legal framework governing the exploration for, and mining of, minerals (excluding petroleum) in offshore areas. This Act addresses the need for a comprehensive regulatory system to manage offshore mineral activities, ensuring that they are conducted in an environmentally sustainable and economically viable manner. The Act allows the Governor-General to make regulations, such as the Offshore Minerals (Fees) Regulations 2018, which prescribe fees necessary for the administration of the Act. These fees compensate state and Northern Territory governments for their administrative costs associated with offshore mineral activities on behalf of the Commonwealth. The 2018 Regulations, which were remade to replace the expiring Offshore Minerals (Fees) Regulations, were developed after consultation with relevant stakeholders and do not propose any substantive changes to the existing fee structure. The policy objective of these regulations is to maintain a consistent and efficient administrative framework for offshore mineral activities in Australia.

Scope and Application

The Offshore Minerals Act 1994 applies to the exploration and mining of minerals, other than petroleum, in offshore areas of Australia. This legislation sets the legal framework for these activities, and it applies to any person or entity engaged in such exploration or mining operations within Australia's offshore areas. The Act is a Commonwealth law, thereby having a national reach across all states and territories. The Act authorises the Governor-General to make regulations, including the Offshore Minerals (Fees) Regulations, which prescribe fees for the purposes of the Act, such as application fees and other administrative fees. These regulations are necessary to compensate state and Northern Territory governments for their administrative costs on behalf of the Commonwealth. The 2018 Regulations, which remake the sunsetting Regulations, are intended to maintain the current fee structure without substantive change, ensuring consistency with current drafting practices and simplifying language. The consultation process involved state and Northern Territory governments and the offshore minerals industry, although no substantive comments were received that affected the final form of the 2018 Regulations. The Act and its regulations are compatible with human rights, as confirmed by the Statement of Compatibility with Human Rights.

Key Provisions

The Offshore Minerals (Fees) Regulations 2018 (referred to as the 2018 Regulations) provide the framework for application and administrative fees under the Offshore Minerals Act 1994 (the Act). Section 6 of the 2018 Regulations prescribes the amounts of these fees, which are necessary to compensate the Designated Authorities (state and Northern Territory governments) for their administrative costs in managing offshore mineral activities on behalf of the Commonwealth. The fees are intended to cover the costs associated with assessing applications and other administrative tasks related to the exploration and mining of minerals in offshore areas. Entities and individuals who apply for permits or licences under the Act are required to pay the fees as prescribed in the 2018 Regulations. This includes those seeking to explore for or mine minerals in offshore areas. The fees are designed to ensure that the Designated Authorities are adequately compensated for their efforts in processing applications and managing the administrative requirements of the Act. Compliance with these fee requirements is mandatory for all applicants seeking to engage in offshore mineral activities. Failure to pay the prescribed fees as outlined in the 2018 Regulations may result in the application being considered incomplete or invalid. This could lead to delays in the processing of applications or even the rejection of applications that do not comply with the fee requirements. While the 2018 Regulations do not specify particular penalties for non-payment of fees, non-compliance could have significant administrative consequences for applicants, potentially affecting their ability to proceed with offshore mineral activities. The 2018 Regulations also include a provision for the repeal of the previous Offshore Minerals (Fees) Regulations (referred to as the sunsetting Regulations) which were set to expire on 1 October 2018. By repealing the sunsetting Regulations and remaking them with minor amendments for consistency and clarity, the 2018 Regulations ensure the continued application of fee structures without interruption. This legislative action underscores the importance of maintaining a consistent and transparent fee structure to support the administration of offshore mineral activities.

Legal classification tags

Area of Law
Environmental Law
Instrument
Regulation
Concepts
Definitions & Interpretation
Commencement Provisions
Repeal & Amendment
Reporting & Disclosure Obligations
Fees & Charges

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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.