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Taxes and royalties on minerals and petroleum

The Australian Government and state and territory governments own Australia’s mineral and petroleum resources on behalf of the community. Companies that extract mineral and petroleum resources must pay taxes and royalties. This ensures the community receives an adequate return on the use of Australia’s non-renewable resources.

Roles and responsibilities

The Australian Government and state and territory governments share responsibility for taxing resources projects.

Australian Government

The Australian Government:

The Minister for Resources and Northern Australia is responsible for issuing combination certificates for petroleum projects under the Petroleum Resource Rent Tax Assessment Act 1987.

Our department

We work with the Western Australia Department of Mines, Industry Regulation and Safety to collect petroleum royalties from the North West Shelf project. The project is a joint venture between 6 major international companies and is one of the world’s largest liquefied natural gas producers.

We also collect royalties for the Commonwealth from:

State and territory governments

The state and territory governments collect royalties for both onshore and offshore mineral and petroleum projects in their coastal waters. There is no common royalty regime in place across all states and territories.

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Last updated: 18 February 2021

Content ID: 43956