Mineral royalties

Mineral royalties

The Office of State Revenue (OSR) is responsible for the collection, financial compliance and debt management of mineral royalties payable in New South Wales (NSW).

The Department of Industry, Resources and Energy (DRE) is responsible for regulatory compliance of mining data, statistics, illegal mining, safety and management of private mineral ownership.

Changes to Royalty Online Services (ROS)

From 4 July 2016  Mineral Royalty Online Services will have the following  enhancements:

  • Additional payment options
  • Improved lodgement process
  • Changes to the display of your client name
  • Ability to view and amend your returns

For more information, please visit our Forms and factsheets page.

What is a mineral royalty?

A mineral royalty is the amount charged by the Crown for the transfer of the right to extract a mineral resource, divided into coal royalties, mineral (non-coal) royalties and petroleum royalties.

The royalty rates are prescribed under the Mining Act 1992.

Who is responsible to lodge and pay royalties?

The holder of a mining lease and sublease is liable to lodge and pay royalty to the Crown on publicly and privately owned minerals recovered by the holder under the lease.

How are royalties collected?

Royalties are collected under the Mining Act 1992. A Royalty Return is required to be lodged based on 'self-assessment', which means it is the responsibility of the mining lease holder to lodge and pay their returns by the due date.

When are royalty returns and payments due?

The due date for lodgement and payment of royalty are dependant on the type of mineral:

  • Coal
  • Non-coal, for example, gold, copper, zinc, silver and lead
  • Petroleum.

You are able to lodge your return and make your payment all in one streamlined process. Payment can also be made anytime up to and including the due date.

The table below shows when you are required to lodge any pay by:

Mineral Type

Lodgement Frequency

Due Date (on or before)

Coal

Monthly

21st of every month

Coal

Annual

31 July each year

Petroleum

Monthly

Last day of every calendar month

Petroleum

Annual

31 July each year

Non-Coal > 50K

Quarterly

30 April, for the period of 3 months ending on 31 March

31 July, for the period of 3 months ending on 30 June

31 October, for the period of 3 months ending on 30 September

31 January, for the period of 3 months ending on 31 December

Non Coal < 50K

Annual

31 July each year

How do I lodge my royalty return?

You lodge your royalty return online, via Royalty Online Services (ROS). Please refer to the ROS user guide before lodging your return.

ROS is available 24 hours a day 7 days a week.

If you are unable to access the online system due to internet connectivity limitations contact us on 1300 139 817 to discuss an alternative arrangement to lodge your royalty returns.

How do I make a royalty payment to OSR?

From 4 July 2016 there are a number of ways you can pay your royalty

Non-royalty payments (for example, rental, licence or publication fees) are to be made to The Department of Industry, Resources and Energy.

What happens if my payment is not paid in full by the due date?

Interest and penalty will be applied under the Tax Administration Act 1996.

Interest is calculated on a daily basis, from the date on which an amount of royalty should have been paid until the day on which the royalty is paid.

Penalty tax may be payable when a tax default occurs.

For more information, visit the Interest and penalties page.

What happens if I don’t submit a royalty return?

You are required to submit a return under the Mining Act 1992. Failure to lodge a return will result in a report of non-compliance to DRE.

For more information, visit the Interest and penalties page.

Will I be provided information on how to use ROS?

Yes, from 4 July 2016 an updated User guide will be available which will provide you with instructions on the use of ROS.

Last updated: 13 October 2016