Petroleum royalties

Reporting requirements

Petroleum Production Licence holders are required to submit royalty payments and royalty returns as per the relevant legislation.

There are five Acts that apply to petroleum projects in Western Australia.  They are the:

  • Offshore Petroleum and Greenhouse Gas Storage Act 2006
    includes production from fields originating from the North West Shelf project areas covered by permits WA-1-P and WA-28-P.  This is an area of Commonwealth jurisdiction in which a wellhead value royalty system is used
  • Petroleum (Submerged Lands) Act 1982
    covers fields within a defined coastal waters area, generally being three nautical miles seaward from the baseline, as well as certain ‘subsisting’ permit areas located within State inland waters.  The State administers a wellhead value royalty system
  • Petroleum Resources Rent Tax Assessment Act 1987
    applies to all onshore and offshore petroleum projects.  This legislation is administered by the Commonwealth Australian Taxation Office.
  • Petroleum and Geothermal Energy Resources Act 1967
    applies to onshore areas and waters landward of the baseline of the coastal waters, other than ‘subsisting’ permit areas under the Petroleum (Submerged Lands) Act.  The State administers a wellhead value royalty system
  • Barrow Island Royalty Variation Agreement Act 1985
    only applies to Barrow Island.  This royalty regime was developed in negotiations between West Australian Petroleum Pty Ltd, the State and the Commonwealth.  It replaced the wellhead royalty and excise system that had previously applied.

Royalty returns can be submitted through Royalties Online.

Payments

The department accepts royalty payments by Electronic Funds Transfer (EFT).

Late payment penalties

An additional amount must be paid if payment is not made by the due date stipulated in the relevant legislation. The additional amount is calculated from the time the royalty became payable until it is paid.

All EFT royalty payments must be made within the prescribed time as stated in the respective legislation to the relevant departmental account.  These accounts are:

For royalties other than Barrow Island RRR and North West Shelf Project

Bank: Commonwealth Bank of Australia
BSB: 066-040
Account: 12000048

For Barrow Island RRR / Penalties

Bank: Commonwealth Bank of Australia
BSB: 066-040
Account: 12000013

For North West Shelf royalties

Bank: Reserve Bank of Australia
BSB: 092-009
Account: 118662

Please include your Payer Reference Code on your EFT transaction so that the Department can allocate your payment against the correct payer/project(s). This is assigned to Royalty Payers by DMP.