Mineral Royalty Penalties

Mineral resources are owned by the community and a royalty is a purchase price for the resource. The community expects a fair return for the loss of its non-renewable mineral resources.
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In 2021, the Minister for Finance, Tony Buti MLA, announced the transfer of the mining and petroleum royalty collection and administration functions from the Department of Mines, Petroleum and Exploration (DMPE) to RevenueWA.

This transition is now complete.  Through RevenueWA, the Department of Treasury and Finance is responsible for the royalty collection and administration functions previously performed by DMPE.  DMPE remains responsible for royalty policy.

Penalties

Mining Act 1978

  • Fines may be imposed if royalty return and production report non-compliance occurs.
  • Forfeiture action or a financial penalty in lieu of forfeiture will be initiated if royalty payment non-compliance occurs.  The penalty comprises a flat penalty plus a 20% percentage of the late royalty amount, applied on a daily basis i.e. 0.054%.  The penalty must not exceed $75,000 if the lessee is an individual or $150,000 if the lessee is a body corporate.

State Agreement Acts

  • If a breach of the royalty provisions in an Agreement Act occurs, action is taken under the provisions of the relevant Agreement Act.

For further information on penalties, please see the Mining Act 1978.

Payments

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

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

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

It is a requirement for your Payer Reference Code to be included on your EFT transaction so that the department can allocate your payment against the correct payer/project(s).

Due to changes to its Royalties Management System, DMIRS Regional Offices can no longer accept royalty payments.  The only acceptable form of payment method is by cheque or EFT as outlined above.

Late payment penalties

Mining Act 1978

  • Fines may be imposed if royalty return and production report non-compliance occurs.
  • Forfeiture action or a financial penalty in lieu of forfeiture will be initiated if royalty payment non-compliance occurs.  The penalty comprises a flat penalty plus a 20% percentage of the late royalty amount, applied on a daily basis i.e. 0.054%.  The penalty must not exceed $75,000 if the lessee is an individual or $150,000 if the lessee is a body corporate.

State Agreement Acts

If a breach of the royalty provisions in an Agreement Act occurs, action is taken under the provisions of the relevant Agreement Act.

For information on the Resource and Environmental Regulation Group Quality Assurance.

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