Resource Royalty Lodgements and Payments
Under Quality Management standard AS/NZS ISO 9001:2015, the Financial Compliance Branch of the Department of Mines, Industry Resources and Safety (DMIRS) is committed to achieving quality results associated with administering petroleum and mineral royalty legislation.
DMIRS undertakes royalty compliance assessments under the provisions of the Mining Act 1978, various State Agreement Acts and Petroleum Acts. A Compliance Assessment Plan is created annually using a risk-based approach to determine the frequency of every compliance assessment.
Prior to a royalty compliance assessment being performed on a royalty payer:
- Contact is made with the royalty payer to advise of the proposed royalty compliance assessment, the data sample required and other supporting documentation that is needed for analysis.
- Further contact occurs with the royalty payer, as may be required, to provide any clarification in regard to the royalty compliance assessment.
Upon completion of the royalty compliance assessment:
- Any routine findings are discussed with the royalty payer and the royalty payer is provided with the preliminary assessment findings and is able to provide comment.
- A compliance report is finalised after comments are received and considered from the royalty payer.
- After engagement with the royalty payer, the following alternate scenarios may occur:
- Where there is agreement between DMIRS and the royalty payer upon finalisation of the assessment, a letter is issued to the royalty payer with the royalty compliance findings which may suggest no findings or requesting a royalty payment adjustment. The letter also allows for potential future royalty adjustments to be made if required through any future DMIRS compliance assessment work.
- Where there is no agreement between DMIRS and the royalty payer, briefings are provided to the relevant ministers and further discussions are held with the royalty payer prior to written advice, as per relevant legislation, being sent to the royalty payer seeking a royalty payment adjustment.
- Royalty returns are then amended (if required) to reflect the assessment findings and royalty payment adjustments processed.
If you have any questions regarding the Royalty Compliance Assessment Process, please do not hesitate to contact the Department by email at email@example.com.