In the 2012–13 State Budget, the Western Australian Government announced a Mineral Royalty Rate Analysis to review Western Australia’s royalty arrangements. This review was conducted jointly by the departments of State Development and Mines and Petroleum, and was released to the public on 25 March 2015. 

The final report and the government's response to the report are both available online.

The review examined the efficacy and appropriateness of the current royalty system. The Terms of Reference required the review to consider the equity and efficiency of any proposed changes to royalty rates, the economic viability of commodity sectors, and royalty arrangements in other jurisdictions.  

The Terms of Reference precluded changes to the ad valorem system and recommendations that would have a detrimental effect on Western Australia’s revenue base. 

The government received 19 submissions from interested parties, organisations, and members of the community during the public submission period. The central themes of those submissions were:

  • The appropriateness of the 10 per cent benchmark which underpins the current three-tier structure of ad valorem royalties
  • The efficiency and equity of the current royalty regime
  • Cost structures
  • Sovereign risk
  • Profitability and economic conditions
  • International competitiveness and investment attraction

As well as receiving written submissions, staff working on the review met companies, industry groups, academia and community groups. An Industry Reference Group comprising the Chamber of Minerals and Energy, the Association of Mining and Exploration Companies, and the two departments met regularly to discuss technical and policy issues. 

For further information, please contact the Director of State Development Policy on +61 8 9222 0555 or via email.