Offshore Minerals (Royalty) Act 1981

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Legislation au C2004A02459 In force Act

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Offshore Minerals (Royalty) Act 1981

Act No. 82 of 1981 as amended

This compilation was prepared on 5 September 2000
taking into account amendments up to Act No. 25 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 Royalty....................................

5 Rate of royalty................................

6 Reduction of royalty in certain cases...................

7 Ascertainment of landed value.......................

8 Ascertainment of quantity.........................

9 Payment of royalty.............................

10 Royalty and penalties debts due to Commonwealth..........

Notes 

 

An Act to impose a royalty upon minerals other than petroleum recovered from the offshore area of Australia

1  Short title [see Note 1]

  This Act may be cited as the Offshore Minerals (Royalty) 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, royalty period, in relation to a mining licence, means:

 (a) the period from and including the day on which the licence takes effect to and including the next following 30 June or 31 December whichever is the earlier; and

 (b) each period of 6 months thereafter.

 (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  Royalty

  A person who is or has been a mining licence holder must pay to the Designated Authority a royalty in respect of all minerals recovered by the holder under the licence.

5  Rate of royalty

 (1) Subject to the succeeding provisions of this section, the Joint Authority may, by instrument in writing, determine the rate of royalty payable in respect of a mineral of a kind specified in the instrument.

 (2) Without limiting the generality of subsection (1), the rates of royalty determined under that subsection may include a rate that is related to the landed value, or to the quantity, of the mineral of the relevant kind.

 (3) A rate of royalty determined under subsection (1) applies in relation to any mineral of the relevant kind recovered under a mining licence during the period when the rate is in force.

 (4) A determination under subsection (1) takes effect on the day on which a copy of the determination is published in the Gazette.

6  Reduction of royalty in certain cases

  Where the Joint Authority is satisfied that, having regard to the rate of royalty determined under section 5 in respect of a mineral of a particular kind, further recovery of that kind of mineral under a mining licence would be uneconomic, the Joint Authority may, by instrument in writing, determine that the royalty in respect of that kind of mineral recovered under that licence shall be at such rate (being a rate lower than the rate determined under that section) as the Joint Authority specifies in respect of such period as the Joint Authority specifies.

7  Ascertainment of landed value

  For the purposes of this Act, the landed value of any mineral is such amount as is agreed between the the mining licence holder and the Joint Authority or, in default of agreement within such period as the Joint Authority allows, is such amount as is determined by the Joint Authority as being that value.

8  Ascertainment of quantity

  For the purposes of this Act, the quantity of any mineral recovered by a a mining licence holder during a royalty period shall be taken to be such quantity as is agreed between the holder and the Joint Authority to have been recovered by the holder during that period or, in default of agreement within such period as the Joint Authority allows, is such quantity as is determined by the Joint Authority as being the quantity of the mineral recovered by the holder during the first‑mentioned period.

9  Payment of royalty

 (1) Royalty under this Act in respect of any mineral recovered during a royalty period is payable within 1 month after the last day of that royalty period.

 (2) Where an amount of royalty under this Act is not paid as provided by subsection (1), there is payable to the Designated Authority by the mining licence holder an additional amount calculated at the rate of one‑third of 1% per day upon the amount of royalty from time to time remaining unpaid, to be computed from the time when the royalty became payable until it is paid.

 (3) An additional amount is not payable under subsection (2) in respect of any period before the expiration of:

 (a) if the rate of royalty payable in respect of the mineral recovered is related to the landed value of the mineral—7 days after the landed value of the mineral was agreed or determined under section 7; or

 (b) if the rate of royalty payable in respect of the mineral recovered is related to the quantity of the mineral—7 days after the quantity of the mineral was agreed or determined under section 8.

10  Royalty and penalties debts due to Commonwealth

 (1) Royalty under section 4, and an amount payable under subsection 9(2), are debts due to the Commonwealth by a person who is or has been a mining licence holder and are recoverable in a court of competent jurisdiction.

 (2) Royalty and other amounts referred to in subsection (1) received by the Designated Authority shall be deemed to be received by the Designated Authority on behalf of the Commonwealth.

Notes to the Offshore Minerals (Royalty) Act 1981

Note 1

The Offshore Minerals (Royalty) Act 1981 as shown in this compilation comprises Act No. 82, 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) (Royalty) Act 1981

82, 1981

18 Jun 1981

1 Feb 1990 (see  Gazette 1989, No. S387)

 

Minerals (Submerged Lands) (Royalty) Amendment Act 1994

25, 1994

25 Feb 1994

(a)

—

(a) (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. 25, 1994

S. 1....................

am. No. 25, 1994

Ss. 3–10................

am. No. 25, 1994

 

Overview

The Offshore Minerals (Royalty) Act 1981 was enacted to address the need for a systematic approach to imposing a royalty on minerals recovered from Australia's offshore area, excluding petroleum. This Act was passed by the Australian Parliament to ensure that the Commonwealth benefits from the economic activities occurring in its offshore areas. The policy objective is to impose a royalty on the recovery of non-petroleum minerals from these areas, which is collected by the Designated Authority on behalf of the Commonwealth. This Act is designed to complement the Offshore Minerals Act 1994, which governs the licensing and regulation of offshore mineral recovery activities. The Offshore Minerals (Royalty) Act 1981 specifies that a royalty must be paid by any person who has been a mining licence holder for the minerals recovered under the licence. The Joint Authority has the authority to determine the rate of royalty, which may be related to the landed value or quantity of the mineral, and this rate applies to all minerals of the relevant kind recovered during the period when the rate is in force. Additionally, the Act allows for the reduction of royalty if further recovery of a particular mineral would be uneconomic.

Scope and Application

The Offshore Minerals (Royalty) Act 1981 applies to any person or entity holding a mining licence for the recovery of minerals from Australia's offshore area. The Act imposes a royalty on these licence holders for all minerals recovered, other than petroleum. The royalty is levied on the basis of either the landed value or the quantity of the recovered minerals. The Joint Authority, as defined under the Offshore Minerals Act 1994, has the power to determine the rates of royalty, which can be varied according to the landed value or quantity of the minerals. Furthermore, the Joint Authority can reduce the royalty rate if it is deemed uneconomic to continue recovery of a particular mineral. The Act applies across the Commonwealth of Australia and is enforced by the Designated Authority, who is responsible for collecting the royalties and any associated penalties for non-payment. Failure to pay the royalty within the specified period incurs additional interest charges. The royalty and any penalties become debts owed to the Commonwealth and can be recovered in a court of competent jurisdiction. The Act's provisions can be extended or modified through subordinate instruments issued by the Joint Authority, ensuring its application can adapt to changing circumstances in the offshore mining industry.

Key Provisions

The Offshore Minerals (Royalty) Act 1981 (Cth) outlines the imposition of a royalty on minerals, other than petroleum, recovered from Australia's offshore area. Section 4 of the Act mandates that any person who holds or has held a mining licence must pay a royalty to the Designated Authority for all minerals recovered under the licence. The Joint Authority is empowered by Section 5 to determine the rate of royalty payable for specified minerals, which can be related to the landed value or quantity of the minerals. This rate applies during the period it is in force, as outlined in Section 5(3). Additionally, Section 6 allows for the reduction of royalty rates if the Joint Authority determines that further recovery of a particular mineral would be uneconomic, specifying a lower rate in such cases. Under Section 9, mining licence holders are required to pay royalties within one month after the end of each royalty period. The royalty period is defined in Section 3(1) as the period from when the licence takes effect to the next following 30 June or 31 December, whichever is earlier, and each six-month period thereafter. If the royalty is not paid within the specified time, an additional amount equivalent to one-third of 1% per day is payable on the unpaid amount, as per Section 9(2). However, this additional amount is not applicable for any period before seven days after the landed value or quantity of the mineral is agreed upon or determined, as per Section 9(3)(a) and (b). The Act also imposes penalties and consequences for non-compliance. Section 10 specifies that unpaid royalties and additional amounts are debts due to the Commonwealth and are recoverable in a court of competent jurisdiction. Failure to comply with the provisions of the Act may result in legal action to recover the owed royalties and penalties, reinforcing the importance of adherence to the stipulated timelines and 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.