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Queensland Government - Queensland Revenue Office
Queensland Government - Queensland Revenue Office

Liability for mining royalty

Liability for mining royalty arises when mineral is sold, disposed of or used in a return period.

It does not matter whether such minerals were:

  • extracted before or during the return period
  • extracted by you or someone else
  • sold, disposed of or used by you or someone else.

It also does not matter when (or if) you receive payment for the sale.

You are responsible for paying any royalty for all mining authorities held by you—even if someone else extracts and/or sells minerals from any of your authorities under a private or commercial arrangement with you.

Calculating the correct amount of royalty is important because we will impose a penalty of 75% of any understated liability.

Royalty liabilities are calculated on the basis of operations. An operation may contain a single mining authority or multiple authorities, as determined under the legislation or by us.

Threshold

The first $100,000 of the combined value of the following minerals (threshold minerals) sold, disposed of or used from an operation during a financial year are exempt from royalty.

Exempt minerals

  • Cobalt
  • Copper
  • Corundum
  • Gemstones
  • Gold
  • Lead
  • Manganese
  • Molybdenum
  • Nickel
  • Other precious stones
  • Rare earths
  • Silver
  • Tantalum
  • Tungsten
  • Uranium
  • Zinc

A mineral is also exempt if there is no specified rate for it in the Mineral Resources Regulation.

If more than one of the above minerals has been sold, disposed of or used during the financial year, you may choose the mineral to apply the $100,000 threshold to. Any remaining balance of the threshold may be applied against another of the threshold minerals.

This exemption is for:

  • a total of $100,000 for all threshold minerals sold, disposed of or used during the financial year, not $100,000 for each mineral
  • the first $100,000 of value, not the first $100,000 of royalty.
Last updated: 16 March 2023