Australian Government royalty
Royalty is payable to the Australian Government to the value of all petroleum (including gas) production from the North West Shelf project area and is shared with Western Australia as prescribed by Section 75 of the Offshore Petroleum and Greenhouse Gas Storage Act (2006).
Royalty is levied as a percentage of the wellhead value which is calculated by subtracting excise, allowances for post-wellhead capital assets and depreciation, and operating costs, such as processing and transportation, from sales receipts. The royalty rate for the North West Shelf is set at between 10 and 12.5 per cent of the wellhead value depending on the size of the area covered by the production licence.
The Australian Government Petroleum Revenues document (see Related documents) contains information on the amount the Australian Government has received annually from petroleum royalties.
For more information about resources taxation, see Resources taxation.