Mining Amendment (Transfer of Royalty Administration) Bill 2025
Receipt and first reading
Bill received from the Assembly and, on motion by Hon Matthew Swinbourn (Minister for the Environment), read a first time.
Second reading speech
Hon Matthew Swinbourn (Minister for the Environment) (5:36 pm): I move:
That the bill be now read a second time.
On 23 June 2021, the government announced a machinery-of-government change to transfer the royalty collection and administration function from the Department of Energy, Mines, Industry Regulation and Safety (DEMIRS) to the Department of Finance's RevenueWA. In Western Australia, mineral royalties are 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 Minister for Mines and Petroleum and public service officers in DEMIRS. This bill amends the Mining Act 1978 and Taxation Administration Act 2003 to give effect to the machinery-of-government change by transferring administration of the Mining Act as it relates to royalty administration and collection functions from the Minister for Mines and Petroleum to the Minister for Finance.
The proposed transfer is achieved by inserting a new part into the Mining Act containing the provisions relating to royalty administration. This will separate the royalty collection functions from the rest of the Mining Act, which provides for the management of Western Australia's mineral titles system and approval of associated mining activities. It will also modernise the Mining Act by bringing the royalty-related provisions into a single part. The provisions in the new part effectively replicate the existing royalty collection arrangements with DEMIRS and modernise the language used in those provisions where required.
Administration of the new part of the Mining Act will be committed to the Minister for Finance, while administration of the rest of the act will remain with the Minister for Mines and Petroleum. The bill also amends the Taxation Administration Act to transfer the administration and collection of royalties under state agreements related to mining from DEMIRS to the Commissioner of State Revenue. These amendments will effectively replicate the existing arrangements between DEMIRS and the Department of Jobs, Tourism, Science and Innovation.
The state, the named ministers and other identified state functionaries will continue to exercise all their existing substantive decision-making powers and discretions under the state agreements. The amendments in the bill are mechanical in nature as required to achieve a like-for-like transfer of royalty collection functions. They do 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 require them to lodge their returns with, and pay royalties to, RevenueWA instead of DEMIRS.
Pursuant to standing order 126(1), I advise that this bill is not a uniform legislation bill. It does not ratify or give effect to a bilateral or multilateral intergovernmental agreement to which the government of the state is a party; nor does this bill, by reason of its subject matter, introduce a uniform scheme or uniform laws throughout the Commonwealth.
I commend the bill to the house and table the explanatory memorandum.
(See paper 254.)
Debate adjourned, pursuant to standing orders.
