{"id":"C2004A02460","name":"Offshore Minerals (Exploration Licence Fees) Act 1981","slug":"offshore-minerals-exploration-licence-fees-act-1981","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"83 of 1981","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":6883,"registerId":"commonwealth-C2004A02460-current","compilationNumber":null,"startDate":"2026-03-30","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Short title [see Note 1]","content":"#### 1 Short title \\[see Note 1\\]\n\n  This Act may be cited as the Offshore Minerals (Exploration Licence Fees) Act 1981.","sortOrder":0},{"sectionNumber":"2","sectionType":"section","heading":"Commencement [see Note 1]","content":"#### 2 Commencement \\[see Note 1\\]\n\n  This Act shall come into operation on the day on which the Minerals (Submerged Lands) Act 1981 comes into operation.","sortOrder":1},{"sectionNumber":"3","sectionType":"section","heading":"Interpretation","content":"#### 3 Interpretation\n\n  (1) In this Act:\n\n> year, in relation to the term of an exploration licence, means:\n\n    (a) the period of 12 months commencing on (and including) the day on which the provisional grant of the licence is properly accepted; or\n    (b) a period of 12 months commencing on (and including) an anniversary of that day; or\n    (c) a period of less than 12 months that:\n    (i) commences on (and includes):\n    (A) the day on which the provisional grant of the licence is properly accepted; or\n    (B) an anniversary of that day; and\n    (ii) ends at the end of the term of the licence.\n  (2) Expressions used in this Act that are used in the Offshore Minerals Act 1994 have, unless the contrary intention appears, the same meanings as they have in that Act.","sortOrder":2},{"sectionNumber":"4","sectionType":"section","heading":"Exploration licence fees","content":"#### 4 Exploration licence fees\n\n  (1) An exploration licence holder must pay a fee to the Designated Authority in respect of each year of the term of the licence.\n  (2) Subject to subsection (3), the amount of the fee is to be calculated in accordance with the regulations.\n  (3) The amount of the fee for a licence for a year is not to exceed whichever is the greater of:\n    (a) $2,000; or\n    (b) the amount obtained by multiplying $100 by the number of blocks covered by the licence at the beginning of the year.","sortOrder":3},{"sectionNumber":"4A","sectionType":"section","heading":"Holder liable to pay fee","content":"#### 4A Holder liable to pay fee\n\n  (1) The licence holder is liable to pay the fee.\n  (2) If the licence has 2 or more holders, the holders are jointly and severally liable to pay the fee.","sortOrder":4},{"sectionNumber":"4B","sectionType":"section","heading":"Time for payment","content":"#### 4B Time for payment\n\n  The fee for a year becomes payable one month after the day on which the year begins.","sortOrder":5},{"sectionNumber":"5","sectionType":"section","heading":"Penalty for late payment","content":"#### 5 Penalty for late payment\n\n  Where the liability of an exploration licence holder to pay a fee referred to in section 4 is not discharged at or before the time when the fee is payable, there is payable to the Designated Authority by the holder an additional amount calculated at the rate of one‑third of 1% per day upon the amount of the fee from time to time remaining unpaid, to be computed from the time when the fee became payable until it is paid.","sortOrder":6},{"sectionNumber":"6","sectionType":"section","heading":"Fees and penalties debts due to Commonwealth","content":"#### 6 Fees and penalties debts due to Commonwealth\n\n  (1) A fee under section 4, and an amount payable under section 5, are debts due by the licence holder to the Commonwealth and are recoverable in a court of competent jurisdiction.\n  (2) Fees and other amounts referred to in sub‑section (1) received by the Designated Authority shall be deemed to be received by the Designated Authority on behalf of the Commonwealth.","sortOrder":7},{"sectionNumber":"7","sectionType":"section","heading":"Regulations","content":"#### 7 Regulations\n\n  The Governor‑General may make regulations prescribing matters:\n    (a) required or permitted by this Act to be prescribed; or\n    (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.","sortOrder":8}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"issue_detection":{"absurdities":[],"contradictions":[]},"summary":{"complexity_score":3,"scope_assessment":{"changed":true,"description":"The Act was originally enacted in 1981 as the 'Minerals (Submerged Lands)' framework but has since been updated to reference the Offshore Minerals Act 1994, reflecting a broader renaming and restructuring of the offshore minerals regulatory regime. The core function — imposing annual licence fees — remains unchanged, but the legislative context and cross-references have evolved beyond the original 1981 scope."},"complexity_factors":["Cross-references to the Offshore Minerals Act 1994 for definitions, requiring readers to consult a separate piece of legislation","Fee calculation is partially delegated to regulations, meaning the full picture is not contained in this Act alone","The fee cap formula (greater of $2,000 or $100 per block) requires interpretation and arithmetic","The definition of 'year' has multiple sub-limbs covering different scenarios (start of licence, anniversary dates, part-years at end of term)","Joint and several liability (where multiple licence holders are each fully responsible for the whole debt) is a legal concept that may be unfamiliar to non-lawyers"],"plain_english_summary":"This Act requires holders of offshore mineral exploration licences in Australian waters to pay an annual licence fee, with amounts set by regulation but capped (no more than $2,000 or $100 per offshore block, whichever is greater). Fees are due one month into each licence year.\n\nLate payments incur a daily 0.33% penalty, joint holders are each liable for the full amount, and unpaid sums are recoverable as debts owed to the Commonwealth — making timely payment legally and financially important for explorers."},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"The Act does not alter which activities are licensable or the substantive rights under offshore minerals law. It establishes a charging and enforcement regime for exploration licences: who pays (licence holders), how payment timing and liability operate, the method for setting amounts (by regulation subject to a statutory cap), and recovery of unpaid sums. No provision expands or narrows licence scope within the text provided."},"complexity_factors":["Delegation of fee calculation to regulations vests discretion in secondary instruments (s 4(2), s 7).","Fee cap uses a two‑part rule (greater of fixed $2,000 or $100 × number of blocks) requiring block counting at year start (s 4(3)).","Definition of 'year' allows full, anniversary, or fractional year accounting, which affects pro rata timing and payment triggers (s 3(1)).","Joint and several liability when multiple holders increases enforcement and recovery complexity (s 4A(2)).","Daily compounding‑style late charge at 1/3 of 1% per day creates high nominal interest and precise computation needs (s 5).","Unpaid fees are designated as debts due to the Commonwealth and are recoverable in court, engaging civil recovery processes (s 6).","Commencement tied to another Act means operational timing depends on external legislative events (s 2).","Cross‑references to the Offshore Minerals Act 1994 for defined terms require consulting that Act to determine scope and application (s 3(2))."],"plain_english_summary":"This Act requires holders of offshore exploration licences to pay an annual fee to the Designated Authority. The exact amount is set by regulation but cannot exceed the greater of $2,000 or $100 per licence block; holders are jointly and severally liable, fees become payable one month into each licence year, late payment attracts a daily charge, and unpaid amounts are recoverable as debts to the Commonwealth.\n\nThe Governor‑General makes regulations that determine fee calculations; the Act links its terminology to the Offshore Minerals Act 1994 and commences with that Act. It creates a predictable fiscal and compliance obligation for licence holders and enforcement powers for the Commonwealth."},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"The legislation remains tightly focused on its original purpose: establishing a fee framework for offshore mineral exploration licences. It has not expanded beyond this narrow administrative function since 1981."},"complexity_factors":["Very short statute (only 7 sections plus interpretation)","Single defined term ('year') with nested sub-paragraphs but straightforward concept","Minimal cross-referencing (only to Offshore Minerals Act 1994 for definitions)","Simple conditional logic (fee calculation cap in s.4(3) and penalty calculation in s.5)","No exceptions to exceptions or complex procedural requirements","Straightforward administrative structure with regulation-making power"],"plain_english_summary":"This law sets up a fee system for companies or individuals who hold exploration licences to search for minerals in Australian offshore waters.\n\n**What it does:**\n- Requires licence holders to pay an annual fee to the \"Designated Authority\" (the government body managing offshore resources)\n- Sets a cap on fees: either $2,000 or $100 multiplied by the number of \"blocks\" (mapped areas) covered by the licence, whichever is higher\n- Makes licence holders pay within one month of each year of their licence term starting\n- Charges penalty interest (about 0.33% per day, or roughly 121% per year) if fees are paid late\n- Treats unpaid fees as debts owed to the Commonwealth, meaning the government can sue to recover them\n- Allows multiple licence holders to be held jointly responsible for payment (if one doesn't pay, the others must cover it)\n\n**Who it affects:**\n- Companies or individuals holding exploration licences under the Offshore Minerals Act 1994\n- The Designated Authority (now typically NOPSEMA or relevant state/NT authorities depending on the area)\n\n**Why it matters:**\nThis is essentially a \"rent\" system for mineral exploration rights in Australian waters. It ensures licence holders pay for the privilege of exclusive exploration rights and provides the government with revenue and a mechanism to penalise non-payment."}},"importantCases":[],"_links":{"self":"/api/acts/offshore-minerals-exploration-licence-fees-act-1981","history":"/api/acts/offshore-minerals-exploration-licence-fees-act-1981/history","analysis":"/api/acts/offshore-minerals-exploration-licence-fees-act-1981/analysis","conflicts":"/api/acts/offshore-minerals-exploration-licence-fees-act-1981/conflicts","importantCases":"/api/acts/offshore-minerals-exploration-licence-fees-act-1981/important-cases","documents":"/api/acts/offshore-minerals-exploration-licence-fees-act-1981/documents"}}