Queensland Petroleum Royalty Review

The Queensland Petroleum Royalty Review was undertaken by a working group independently chaired by former South Australian Premier Jay Weatherill. The primary objectives of the review were to ensure greater certainty and equity for all parties and to identify opportunities to simplify the current royalty regime, while providing an appropriate return to all Queenslanders for their valuable non-renewable petroleum resources. These reports examine different royalty models to achieve these objectives.

On 8 June 2020, the Queensland Government announced that a new volume-based model will be implemented for the calculation of petroleum royalty. The new petroleum royalty model will apply from 1 October 2020.

Note:  Since the Petroleum Royalty Review final report dated 26 February 2020, further consultation has occurred with industry.  As a result, some of the issues and recommendations in the reports have been updated.  In particular, the commencement date of the new Volume Model has changed from 1 July 2020 to 1 October 2020.  In addition, following industry feedback, the use of ‘industry benchmark indicators’ as a key input to the model has changed to using ‘actual sales revenue’ wherever possible, necessitating additional tiers for calculating royalty.  Further, non-CSG petroleum is now incorporated into the Volume Model.