Royalties
In NSW, royalty is payable for coal, petroleum and certain minerals.
Royalties are a key revenue source for the NSW Government. In 2022-23, coal provided about $4.5 billion in royalty and minerals and petroleum provided about $164 million.
Royalties go into consolidated revenue for allocation through the budget process.
The NSW Government is introducing a scheme worth up to $250 million to defer royalties for new critical minerals projects to improve investment feasibility for new mines across the state.
More information will be made available in 2025.
Royalty rates
Value-based royalty
Value-based royalty is charged as a percentage of assessable revenue less allowable deductions.
| Royalty rate | ||
|---|---|---|
| Petroleum | Onshore and offshore | 10% |
| Coal (from July 1 2024) | Open cut coal | 10.8% |
| Underground coal | 9.8% | |
| Deep underground coal | 8.8% |
| 4% royalty rate | ||
|---|---|---|
| Agate | Gold | Rare earth minerals |
| Antimony | Graphite | Rhodonite |
| Apatite | Ilmenite | Rubidium |
| Arsenic | Indium | Ruby |
| Asbestos | Iron minerals | Rutile |
| Beryllium minerals | Jade | Sapphire |
| Bismuth | Lead | Scandium and its ores |
| Cadmium | Leucoxene | Selenium |
| Caesium | Lithium | Silver |
| Chalcedony | Manganese | Strontium minerals |
| Chromite | Marine aggregate | Sulphur |
| Cobalt | Mercury | Tantalum |
| Copper | Molybdenite | Thorium |
| Corundum | Monazite | Tin |
| Cryolite | Nephrite | Topaz |
| Diamond | Nickel | Tourmaline |
| Emerald | Niobium | Tungsten and its ores |
| Emery | Oil shale | Turquoise |
| Galena | Ores of silicon | Vanadium |
| Garnet | Platinum | Zinc |
| Geothermal substances | Platinum group minerals | Zirco |
| Germanium | Quartz crystal | Zirconia |
Fixed-rate royalty
| 35 cents a tonne | ||
|---|---|---|
| Agricultural lime | Chert | Gypsum |
| Bauxite | Clay/shale | Structural clay |
| 40 cents a tonne | ||
|---|---|---|
| Calcite | Halite (incl. solar salt) | Magnesium salts |
| Dolomite | Limestone | Potassium salts |
| Sodium salts |
| 70 cents a tonne | ||
|---|---|---|
| Barite | Magnesite | Pyrophyllite |
| Bentonite (including Fuller's Earth) | Marble | Quartzite |
| Borates | Mica | Reef quartz |
| Chlorite | Mineral pigments | Serpentine |
| Diatomite | Olivine | Sillimanate-group minerals |
| Dimension stone | Peat | Staurolite |
| Feldspathic materials | Perlite | Talc |
| Fluorite | Phosphates | Vermiculite |
| Kaolin | Potassium minerals | Wollastonite |
| Zeolites |