Petroleum royalty rates
Petroleum royalty is calculated by applying a rate to the volume of petroleum produced. Each of the 4 liable classes of petroleum has a separate rate.
The petroleum royalty rates are set out in part 2, division 3 of the Petroleum and Gas (Royalty) Regulation 2021.
You must use the average sales price of a particular classification to determine the applicable royalty rate for all petroleum in that classification in a royalty return period. The average sales price is either:
- worked out with a formula that uses relevant sales data (based on actual sales revenue and any deemed sales revenue if appropriate)
or - equal to the benchmark price for the petroleum type for the return period.
Relevant sales means, for each petroleum type, the following sales.
| Petroleum type | Relevant sales |
|---|---|
| Domestic gas | All gas you have sold in the royalty return period, either directly or indirectly through one or more resellers for you, to a person who is not an LNG project buyer |
| Supply gas | All gas you have sold in the royalty return period, either directly or indirectly through one or more resellers for you, to a person who is an LNG project buyer |
| Project gas | All LNG sold in the royalty return period by each member of the LNG project of which you are a member (the relevant project) |
| Liquid petroleum | All oil or condensate you have sold in the royalty return period, either directly or indirectly through one or more resellers for you |
Relevant sales data means, for each petroleum type, the following data in relation to relevant sales.
| Petroleum type | Relevant sales |
|---|---|
| Domestic gas | Where the purchaser is:
|
| Supply gas | Where the purchaser is:
|
| Project gas | Where the purchaser is:
|
| Liquid petroleum | Where the purchaser is:
|
You may elect to use the benchmark price for a particular petroleum type as the average sales price on an ongoing basis by making a declaration in your petroleum royalty return. To stop using the benchmark price, complete the application to end benchmark election (Form R02.10). The Commissioner of State Revenue will consider the reasons why you want to end the election.
The average sales price, benchmark price and royalty rate are rounded down to 4 decimal places in the calculations. The units of measurement are:
- gigajoules (GJ) for gas
- barrels (bbl) for liquid petroleum.
Domestic gas
| Average sales price | Royalty payable per GJ |
|---|---|
| Up to and including $3/GJ | 0.02 cents/GJ for each 1 cent/GJ more than $0/GJ |
| Over $3/GJ and up to and including $8/GJ | 6 cents/GJ plus 0.08 cents/GJ for each 1 cent/GJ more than $3/GJ |
| More than $8/GJ | 46 cents/GJ plus 0.10 cents/GJ for each 1 cent/GJ more than $8/GJ |
Supply gas
| Average sales price | Royalty payable per GJ |
|---|---|
| Up to and including $3/GJ | 0.05 cents/GJ for each 1 cent/GJ more than $0/GJ |
| Over $3/GJ and up to and including $8/GJ | 15 cents/GJ plus 0.10 cents/GJ for each 1 cent/GJ more than $3/GJ |
| More than $8/GJ | 65 cents/GJ plus 0.125 cents/GJ for each 1 cent/GJ more than $8/GJ |
Project gas
| Average sales price | Royalty payable per GJ |
|---|---|
| Up to and including $9/GJ | 0.03 cents/GJ for each 1 cent/GJ more than $0/GJ |
| Over $9/GJ and up to and including $14/GJ | 27 cents/GJ plus 0.09 cents/GJ for each 1 cent/GJ more than $9/GJ |
| More than $14/GJ | 72 cents/GJ plus 0.125 cents/GJ for each 1 cent/GJ more than $14/GJ |
Liquid petroleum (oil and condensate)
| Average sales price | Royalty payable per bbl |
|---|---|
| Up to and including $50/bbl | 0.03 cents/bbl for each 1 cent/bbl more than $0/bbl |
| Over $50/bbl and up to and including $100/bbl | $1.50/bbl plus 0.115 cents/bbl for each 1 cent/bbl more than $50/bbl |
| More than $100/bbl | $7.25/bbl plus 0.125 cents/bbl for each 1 cent/bbl more than $100/bbl |
Benchmark price
| Petroleum type | Benchmark price for a royalty return period |
|---|---|
| Domestic gas | The firm End of Day Wallumbilla Benchmark Price averaged over the royalty return period |
| Supply gas | 0.09 bbl/GJ multiplied by the daily Europe Brent Spot Price FOB ($/bbl) averaged over the relevant period |
| Project gas | 0.135 bbl/GJ multiplied by the daily Europe Brent Spot Price FOB ($/bbl) averaged over the relevant period |
| Liquid petroleum | The daily Europe Brent Spot Price FOB ($/bbl) averaged over the royalty return period |
We will publish the benchmark price for each return period after the end of that period.
We use the daily WM/Reuters Australian Fix 10.00am bid price to determine the average hedge settlement rate for the royalty return period in converting the daily Europe Brent Spot Price FOB benchmark from US dollars into Australian dollars.
Relevant period
For supply gas and project gas, the relevant period for a royalty return period is:
- for quarterly returns—the 3-month period starting on the day that is 4 months immediately before the start of the royalty return period. The relevant 3-month period for quarterly returns ending on
- 31 March is 1 September to 30 November of the previous calendar year
- 30 June is 1 December of the previous calendar year to the end of February of the same calendar year
- 30 September is 1 March to 31 May of the same calendar year
- 31 December is 1 June to 31 August of the same calendar year
- for financial year returns—the 12-month period starting on the day that is 4 months immediately before the start of the royalty return period. The relevant 12-month period for an annual return is 1 March of the previous calendar year to the end of February of the same calendar year.
Also consider…
- Find out about petroleum and gas tenures.
- Learn about lodging royalty returns.
- Find out how to correct errors in a royalty return.
- Read the petroleum guide for QRO Online.