Minister for Finance and Services Dominic Perrottet and Minister for Resources and Energy Anthony Roberts today announced a new structure for the NSW Government’s administration of the more than $1.3 billion in mineral royalties collected each year.
Currently, the Division of Resources and Energy within NSW Trade and Investment is responsible for the collection of all mining royalties in NSW. Under this new structure the Office of State Revenue, with its expertise in compliance and debt management, will collect all mineral royalties in NSW.
“State Revenue already manages collection functions in relation to fines, duties, payroll and land taxes, as well as other types of payments to the government, so it makes sense that it manage mineral royalties as well,” Mr Perrottet said.
“This is a real opportunity for the NSW Government to apply a consistent approach to all taxpayer revenue sources across the state.”
Details of the transfer of royalty administration will be developed between the Office of State Revenue and the Division of Resources and Energy, with a view to the new arrangements being introduced on 1 July 2014.
Mr Roberts said the change in royalty administration would have no impact on the returns from the development of the State’s natural resources.
“Royalty amounts will not be affected by the new arrangements. This will simply allow the Division of Resources and Energy to get on with its core business of regulating the mineral industry for the benefit of the people of NSW,” he said.
“Mineral royalties are critical to the state’s economy, providing more than $1.3 billion in funding annually for our schools, hospitals, roads and crucial infrastructure.”
Mr Roberts said the NSW Government will liaise closely with industry to ensure a smooth transition for the royalty regime.