Royalties and Fees

Onshore South Australia, the Crown retains ownership of geothermal, petroleum and other regulated resources contained in the ground. Ownership of a regulated substance transfers to a licensee upon recovery of the regulated substance on which a royalty is levied. This royalty is in addition to the Commonwealth, state and local government taxation regimes to which all companies and individuals are subject.

The following royalty provisions apply to the exploration and production of geothermal energy:

  • Royalty on geothermal energy is 2.5% of the wellhead value.
  • The value at the wellhead of geothermal energy is calculated by subtracting from the price (exclusive of any GST component) that could reasonably be realised on sale of the energy to a genuine purchaser at arms length from the producer, all reasonable expenses (exclusive of any GST component) reasonably incurred by the producer in getting the energy to the point of delivery to the purchaser.
  • The value at the wellhead of geothermal energy is to be assessed by the minister.
  • The minister may, on application by the producer, or on the minister’s own initiative, review and revise an earlier assessment of the value at the wellhead of the geothermal energy.

Requirement to Pay Royalties

The Licensees shall pay royalty in respect of all regulated resource produced from land comprised in the Licence ... other than substances described in Extract from the Petroleum and Geothermal Energy Act 2000: Section 43 (3)(a).

Payment of Regulated Fees and Royalty

Regulated Fee and Royalty payments can be made by cheque made payable to PIRSA, or by direct bank transfer to:

PIRSA Banking Details

Westpac Banking Corporation
1 King William Street
ADELAIDE  SA  5000

Swift Code                    WPACAU425
BSB                                035-502
Account Number            180021
Account Name                PIRSA Collection Account

Payment Details            (Please forward remittance advice)
Email                             ARFinance04@sharedservices.sa.gov.au
Fax                                08 8124 9804

ABN                               53 763 159 658
 
Any enquiries in relation to Regulated Fees or Royalty lodgement should be directed to the Licensing and Royalties branch, Energy Resources Division, Level 6, 101 Grenfell Street, Adelaide SA 5000, or by phoning +61 8 8463 3204.