Hon N.F. Moore asks about the revenue implications of Mining Amendment Regulations No 6. Hon Ken Travers responds that the changes should be revenue neutral, clarifying the exchange rate for royalty payments in Australian dollars.

AnsweredQoN 981Legislative Council
Asked
19 December 2001
Portfolio
State Development

QuestionView source ↗

MINING AMENDMENT REGULATIONS NO 6
I refer the minister to the Mining Amendment Regulations No 6 tabled in this House on 18 December. Are there any revenue implications for the Government associated with the regulation? Hon KEN TRAVERS

AnswerView source ↗

I thank the member for some notice of this question. I am advised that the changes to the royalty regulations should be revenue neutral for the Government. Mining Amendment Regulations No 6 includes the requirement for royalties to be paid in Australian dollars. This will result in minor revenue fluctuations due to the amendment clearly specifying the exchange rate to be used to convert foreign currencies. The payment of royalties in Australian dollars was not previously clearly specified in the Mining Act 1978 Regulations and resulted in exchange rates from either major banks or the Reserve Bank of Australia being used to convert foreign currencies. Under the amendment the exchange rate is specified as being the daily representative rate used by the Reserve Bank of Australia.
Hon KEN TRAVERS replied: I thank the member for some notice of this question. I am advised that the changes to the royalty regulations should be revenue neutral for the Government. Mining Amendment Regulations No 6 includes the requirement for royalties to be paid in Australian dollars. This will result in minor revenue fluctuations due to the amendment clearly specifying the exchange rate to be used to convert foreign currencies. The payment of royalties in Australian dollars was not previously clearly specified in the Mining Act 1978 Regulations and resulted in exchange rates from either major banks or the Reserve Bank of Australia being used to convert foreign currencies. Under the amendment the exchange rate is specified as being the daily representative rate used by the Reserve Bank of Australia.
I thank the member for some notice of this question. I am advised that the changes to the royalty regulations should be revenue neutral for the Government. Mining Amendment Regulations No 6 includes the requirement for royalties to be paid in Australian dollars. This will result in minor revenue fluctuations due to the amendment clearly specifying the exchange rate to be used to convert foreign currencies. The payment of royalties in Australian dollars was not previously clearly specified in the Mining Act 1978 Regulations and resulted in exchange rates from either major banks or the Reserve Bank of Australia being used to convert foreign currencies. Under the amendment the exchange rate is specified as being the daily representative rate used by the Reserve Bank of Australia.

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