New Mining Law Alters Royalty Collection, Management

  • Mining Amendment Bill 2025 passes Parliament
  • Transfers royalty administration and collection from the Mines and Petroleum Minister to the Finance Minister
  • RevenueWA to collect mining and petroleum royalties

The Mining Amendment Bill 2025, which changes responsibility for royalty collection and administration, has passed the Western Australian Parliament.

In Western Australia, mineral royalties are currently administered under the Mining Act 1978, the Mining Regulations 1981, and around 30 State Agreement Acts.

This framework involves royalty administration and collection functions being undertaken by the Mines and Petroleum Minister and public service officers in the Department of Energy, Mines, Industry Regulation and Safety (DEMIRS).

Amendments in the Mining Amendment Bill 2025transfer royalty administration and collection functions for mining royalties from the Mines and Petroleum Minister to the Finance Minister.

In practical terms, this transfers functions from DEMIRS to the Department of Finance's RevenueWA.

The Bill also amends the Taxation Administration Act 2003 to transfer the administration and collection of royalties under State Agreements relating to mining from DEMIRS to the Commissioner of State Revenue.

Integrating the existing expertise of DEMIRS' staff with RevenueWA information technology systems will enhance royalty collection and compliance assurance activities.

It also aligns Western Australia with other jurisdictions that have separated the policy and administration functions.

The Bill effects a like-for-like transfer of administration and does not convert royalties into taxes under the taxation administration legislation or give greater powers to the State.

Similarly, the amendments do not substantively alter the existing rights and obligations of royalty payers other than to redirect their interactions from DEMIRS to RevenueWA.

As stated by Finance Minister David Michael:

"I would like to acknowledge the passing of the Mining Amendment Bill 2025 through the Western Australian Parliament.

"While the amendments made through this legislation are mechanical in nature, they represent modernisation of the Act and a new way forward for the collection of royalties."

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