Hon Norman Moore questions the Minister for State Development regarding changes to mining amendment regulations, specifically concerning royalty part-payments and potential preferential treatment. The Minister, Hon Kim Chance, clarifies the purpose of the changes and assures that no preferential treatment exists.

AnsweredQoN 304Legislative Council
Asked
25 May 2005
Portfolio
State Development

QuestionView source ↗

I refer the minister to the mining amendment regulations No (3) 2005 tabled this week. (1) What is the purpose of the change to the regulations? (2) What methods are available to the Director General of Mines for calculating royalty part-payments? (3) Should there be a single method of calculation to avoid the risk of preferential treatment; and, if not, why not? Hon KIM CHANCE

AnswerView source ↗

I thank the member for some notice of this question. (1) The purpose is to enable the legislation to reflect current practice regarding the apportioning of allowable deductions for royalty calculation purposes. Royalty payers currently claim the full amount of the allowable deductions in periods when a royalty part-payment is made. (2) Part-payment of royalties applies only when the producer of the mineral has received a part-payment of the sale invoice value from the purchaser. The balance of the royalty payment is paid after the purchaser of the mineral pays the balance of the sales invoice. (3) There is no risk of preferential treatment because all producers pay royalty based on the portion of the sales invoice value.
(1) What is the purpose of the change to the regulations? (2) What methods are available to the Director General of Mines for calculating royalty part-payments? (3) Should there be a single method of calculation to avoid the risk of preferential treatment; and, if not, why not? Hon KIM CHANCE replied: I thank the member for some notice of this question. (1) The purpose is to enable the legislation to reflect current practice regarding the apportioning of allowable deductions for royalty calculation purposes. Royalty payers currently claim the full amount of the allowable deductions in periods when a royalty part-payment is made. (2) Part-payment of royalties applies only when the producer of the mineral has received a part-payment of the sale invoice value from the purchaser. The balance of the royalty payment is paid after the purchaser of the mineral pays the balance of the sales invoice. (3) There is no risk of preferential treatment because all producers pay royalty based on the portion of the sales invoice value.
(2) What methods are available to the Director General of Mines for calculating royalty part-payments? (3) Should there be a single method of calculation to avoid the risk of preferential treatment; and, if not, why not? Hon KIM CHANCE replied: I thank the member for some notice of this question. (1) The purpose is to enable the legislation to reflect current practice regarding the apportioning of allowable deductions for royalty calculation purposes. Royalty payers currently claim the full amount of the allowable deductions in periods when a royalty part-payment is made. (2) Part-payment of royalties applies only when the producer of the mineral has received a part-payment of the sale invoice value from the purchaser. The balance of the royalty payment is paid after the purchaser of the mineral pays the balance of the sales invoice. (3) There is no risk of preferential treatment because all producers pay royalty based on the portion of the sales invoice value.
(3) Should there be a single method of calculation to avoid the risk of preferential treatment; and, if not, why not? Hon KIM CHANCE replied: I thank the member for some notice of this question. (1) The purpose is to enable the legislation to reflect current practice regarding the apportioning of allowable deductions for royalty calculation purposes. Royalty payers currently claim the full amount of the allowable deductions in periods when a royalty part-payment is made. (2) Part-payment of royalties applies only when the producer of the mineral has received a part-payment of the sale invoice value from the purchaser. The balance of the royalty payment is paid after the purchaser of the mineral pays the balance of the sales invoice. (3) There is no risk of preferential treatment because all producers pay royalty based on the portion of the sales invoice value.
Hon KIM CHANCE replied: I thank the member for some notice of this question. (1) The purpose is to enable the legislation to reflect current practice regarding the apportioning of allowable deductions for royalty calculation purposes. Royalty payers currently claim the full amount of the allowable deductions in periods when a royalty part-payment is made. (2) Part-payment of royalties applies only when the producer of the mineral has received a part-payment of the sale invoice value from the purchaser. The balance of the royalty payment is paid after the purchaser of the mineral pays the balance of the sales invoice. (3) There is no risk of preferential treatment because all producers pay royalty based on the portion of the sales invoice value.
I thank the member for some notice of this question. (1) The purpose is to enable the legislation to reflect current practice regarding the apportioning of allowable deductions for royalty calculation purposes. Royalty payers currently claim the full amount of the allowable deductions in periods when a royalty part-payment is made. (2) Part-payment of royalties applies only when the producer of the mineral has received a part-payment of the sale invoice value from the purchaser. The balance of the royalty payment is paid after the purchaser of the mineral pays the balance of the sales invoice. (3) There is no risk of preferential treatment because all producers pay royalty based on the portion of the sales invoice value.
(1) The purpose is to enable the legislation to reflect current practice regarding the apportioning of allowable deductions for royalty calculation purposes. Royalty payers currently claim the full amount of the allowable deductions in periods when a royalty part-payment is made. (2) Part-payment of royalties applies only when the producer of the mineral has received a part-payment of the sale invoice value from the purchaser. The balance of the royalty payment is paid after the purchaser of the mineral pays the balance of the sales invoice. (3) There is no risk of preferential treatment because all producers pay royalty based on the portion of the sales invoice value.
(2) Part-payment of royalties applies only when the producer of the mineral has received a part-payment of the sale invoice value from the purchaser. The balance of the royalty payment is paid after the purchaser of the mineral pays the balance of the sales invoice. (3) There is no risk of preferential treatment because all producers pay royalty based on the portion of the sales invoice value.
(3) There is no risk of preferential treatment because all producers pay royalty based on the portion of the sales invoice value.

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