Gross value of minerals

Where royalty is calculated as a percentage of a mineral’s value, you first need to work out the gross value of the mineral.

The gross value of a mineral will generally be the amount for which it is sold.

The gross value must:

• reflect any gains or losses due to a change in exchange rates between the time the mineral was sold and when any payment for the sale is received
• include any amount recovered from the purchaser in relation to the mineral royalty payable for the sale
• include the value of any mineral where no monetary consideration was received for its sale, disposal or use (e.g. when a barter transaction occurred, or when processing costs were paid in whole or in part by transfer of title to mineral).

Gross value royalty decisions

In certain circumstances (especially where mineral is sold to a related party, or is disposed of or used), the gross value will be the amount we determine through a gross value royalty decision.

In these circumstances you must apply for a gross value royalty decision to work out the royalty payable.

You can download the gross value royalty decision package (which includes an information guide and application form) or contact Queensland Revenue Office on 1300 300 734.

Also consider…

• Read the public ruling on the determination of coal royalty (MRA001).
• Read the public ruling on the determination of royalty for prescribed and specified minerals (MRA002).
• Read the public ruling on the determination of royalty for certain minerals (MRA003).
• Read the royalty rulings for liabilities arising before 1 October 2020.