{"id":"C2004A04706","name":"Offshore Minerals (Retention Licence Fees) Act 1994","slug":"offshore-minerals-retention-licence-fees-act-1994","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"30 of 1994","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":436178,"registerId":"C2004A04706-fast-fetch-1775953434781","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Offshore Minerals (Retention Licence Fees) Act 1994","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\n![](image.001.png)\n\n \n\n \n\n \n\n \n\n \n\nOffshore Minerals (Retention Licence Fees) Act 1994\n\n \n\nNo. 30 of 1994\n\n \n\n \n\n \n\n \n\n \n\nAn Act to provide for the payment of fees for retention licences issued under the Offshore Minerals Act 1994\n\n \n\n \n\n \n\nContents\n\n[1 Short title](#_Toc425153713)\n\n[2 Commencement](#_Toc425153714)\n\n[3 Interpretation](#_Toc425153715)\n\n[4 Retention licence fees](#_Toc425153716)\n\n[5 Holder liable to pay fee](#_Toc425153717)\n\n[6 Time for payment](#_Toc425153718)\n\n[7 Penalty if fee overdue](#_Toc425153719)\n\n[8 Fees and penalties are debts due to Commonwealth](#_Toc425153720)\n\n[9 Regulations](#_Toc425153721)\n\n \n\n![](image.001.png)\n\n \n\n \n\nOffshore Minerals (Retention Licence Fees) Act 1994\n\n \n\nNo. 30 of 1994\n\n \n\n \n\n \n\n \n\nAn Act to provide for the payment of fees for retention licences issued under the Offshore Minerals Act 1994\n\n[Assented to 25 February 1994\n\nThe Parliament of Australia enacts:\n\n##### 1  Short title\n\n  This Act may be cited as the Offshore Minerals (Retention Licence Fees) Act 1994.\n\n##### 2  Commencement\n\n  This Act commences immediately after the Offshore Minerals Act 1994 commences.\n\n##### 3  Interpretation\n\n (1) In this Act:\n\nyear, in relation to the term of a retention 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\n (b) a period of 12 months commencing on (and including) an anniversary of that day; or\n\n (c) a period of less than 12 months that:\n\n (i) commences on (and includes):\n\n (A) the day on which the provisional grant of the licence is properly accepted; or\n\n (B) an anniversary of that day; and\n\n (ii) ends at the end of the term of the licence.\n\n (2) Expressions used in the Offshore Minerals Act 1994 have the same meaning in this Act unless the contrary intention appears.\n\n##### 4  Retention licence fees\n\n (1) A retention licence holder must pay a fee to the Designated Authority for each year of the licence’s term.\n\n (2) Subject to subsection (3), the amount of the fee is to be calculated in accordance with the regulations.\n\n (3) The amount of the fee for a licence for a year is not to exceed the amount obtained by multiplying $1,000 by the number of blocks covered by the licence at the beginning of the year.\n\n##### 5  Holder liable to pay fee\n\n (1) The licence holder is liable to pay the fee.\n\n (2) If the licence has 2 or more holders, the holders are jointly and severally liable to pay the fee.\n\n##### 6  Time for payment\n\n  The fee for a year becomes payable one month after the day on which the year begins.\n\n##### 7  Penalty if fee overdue\n\n (1) If the fee for a retention licence is not paid when it becomes payable, the licence holder must pay a penalty to the Designated Authority.\n\n (2) If the licence has 2 or more holders, the holders are jointly and severally liable to pay the penalty.\n\n (3) The penalty is to be calculated:\n\n (a) on the amount of the fee that remains unpaid; and\n\n (b) at the rate of 0.33% for each day during which the fee is unpaid.\n\n##### 8  Fees and penalties are debts due to Commonwealth\n\n (1) The Commonwealth may recover the following amounts in a court of competent jurisdiction as debts due to the Commonwealth:\n\n (a) a fee under section 4;\n\n (b) an amount of unpaid section 6 penalty.\n\n (2) The Designated Authority receives retention licence fees under section 4 and any section 7 penalty on behalf of the Commonwealth.\n\n##### 9  Regulations\n\n  The Governor‑General may make regulations prescribing matters:\n\n (a) required or permitted by this Act to be prescribed; or\n\n (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.\n\n \n\n \n","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":2,"scope_assessment":{"changed":false,"description":"The Act is narrowly focused: it creates a fee and penalty regime for retention licences granted under the Offshore Minerals Act 1994. It does not broaden subject‑matter beyond that original purpose; rather it implements fee mechanics (amount cap, timing, liability, penalties, recovery and regulation‑making power) and leaves rate detail to subordinate regulation. There is no substantive scope expansion beyond the statute's stated aim."},"complexity_factors":["9 sections only (short, focused Act)","One defined term of consequence: \"year\" with 3 alternative sub‑paragraphs (section 3(1))","Cross‑reference to Offshore Minerals Act 1994 for undefined expressions (section 3(2))","Fee amount set by regulations but subject to a statutory cap ($1,000 × number of blocks) (sections 4(2)–(3))","Daily penalty calculation (0.33% per day) creates a numerical, time‑dependent obligation (section 7(3))","Joint and several liability where licences have multiple holders (sections 5(2) and 7(2))","Recoverability as a debt to the Commonwealth and administrative role for the Designated Authority (section 8)"],"plain_english_summary":"**What this law does (mechanically)**\n\n- Sets a statutory obligation for holders of \"retention licences\" under the Offshore Minerals Act 1994 to pay an annual fee to the Designated Authority (section 4(1)).\n- The exact fee amount is set by regulation, but there is an upper limit: it cannot exceed $1,000 multiplied by the number of offshore blocks the licence covers at the start of the licence year (section 4(2)–(3)).\n- A \"year\" for fee purposes is defined in the Act and generally means each 12‑month period commencing on the day the provisional grant is accepted or on an anniversary of that day (section 3(1)).\n- The annual fee becomes payable one month after the relevant licence year begins (section 6).\n- If the fee is unpaid when due, a daily penalty of 0.33% is payable on the unpaid amount (section 7(3)). This accrues daily (section 7(1)), which is approximately 0.0033 × 365 ≈ 120.45% per annum if unpaid for a full year (mathematical illustration only).\n- Where there are multiple licence holders they are jointly and severally liable for fees and penalties (sections 5(2) and 7(2)).\n- Fees and penalties are recoverable by the Commonwealth as debts in court; the Designated Authority receives and administers the receipts on the Commonwealth's behalf (section 8).\n- The Governor‑General may make regulations to prescribe how fees are calculated and other matters needed to operate the Act (section 9).\n\n**Who this affects**\n\n- Primary: holders of retention licences granted under the Offshore Minerals Act 1994 (sections 3(2) and 4(1)).\n- Secondary: where licences have multiple holders, each holder is exposed to full liability for unpaid fees or penalties because of joint and several liability (sections 5(2) and 7(2)).\n- The Designated Authority and the Commonwealth (as the recipient and enforcer of the fees and penalties) have administrative and collection responsibilities (section 8).\n\n**Why this matters (purpose claims and practical consequences)**\n\n- Stated purpose: to provide for the payment of fees for retention licences (long title; section 4 gives mechanics). The Act operationalises that claim by creating the obligation, timing, cap and enforcement route.\n\n- Costs and incentives:\n  - The cap ($1,000 per block per year) sets a clear upper bound on fee exposure for licence holders (section 4(3)).\n  - However, the actual fee level is left to regulation (section 4(2)), giving the executive scope to set differential or scaled fees without further primary‑legislation changes. That regulatory discretion creates some uncertainty for commercial planning until regulations are known.\n  - The daily penalty (0.33% per day) creates a strong incentive to pay on time; it compounds quickly (see mathematical illustration above). That raises the financial risk of late payment to licence holders and may influence commercial decisions about holding or relinquishing blocks (section 7(3)).\n\n- Distribution of burden and contractual effects:\n  - Joint and several liability (sections 5(2) and 7(2)) means any co‑holder can be pursued for the entire amount. This raises counterparty risk and increases the importance of internal contractual protections (e.g. indemnities and payment undertakings) among co‑holders.\n\n- Enforcement and administrative costs:\n  - The Commonwealth can recover unpaid sums as debts in court (section 8(1)), which may lead to litigation costs for both the Crown and licence holders.\n  - The Designated Authority administers receipt and collection (section 8(2)), so administrative capacity and timeliness of billing will affect compliance burdens and enforcement timing.\n\n- Implementation risks and trade‑offs:\n  - Reliance on regulations to set the precise fee structure (section 4(2) and section 9) concentrates practical fee‑setting power in subordinate instruments. That reduces parliamentary detail but allows flexibility to adjust fees to policy or market conditions.\n  - The high daily penalty rate risks rapid accrual of liabilities from short delays, which can cause cash‑flow stress for smaller firms and increase dispute likelihood over whether payment was \"when it becomes payable\" (sections 6 and 7).\n\n**Who pays, who decides, and what behaviour is likely to change**\n\n- Who pays: the retention licence holder(s) (section 5(1)); with multiple holders each faces joint and several liability (section 5(2)).\n- Who decides amounts: regulations determine the calculation subject to the statutory cap (sections 4(2)–(3) and 9).\n- Likely behaviour changes: increased cost of holding retention licences (relative to no fee) may reduce speculative holding of blocks, prompt tighter contractual arrangements among co‑holders, and incentivise prompt payment to avoid the aggressive daily penalty.\n\n**Key statutory references:** definitions and timing (s3, s6), fee obligation and cap (s4), liability (s5), penalty (s7), recovery (s8), regulations (s9)."},"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"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 regime for retention licences. It has not expanded beyond collecting fees, setting payment terms, and enforcing payment through penalties and debt recovery."},"complexity_factors":["Only 9 sections total, with minimal cross-referencing","Single defined term ('year') with straightforward sub-definitions","Simple mathematical calculation for penalty (0.33% daily rate)","No nested exceptions or conditional logic beyond basic 'if unpaid then penalty' structure","Heavy reliance on regulations for fee calculation details, keeping the primary legislation brief","Clear one-way dependency on the Offshore Minerals Act 1994 for definitions"],"plain_english_summary":"This law sets up a simple fee system for companies or individuals who hold **retention licences** under the Offshore Minerals Act 1994.\n\nA **retention licence** is a type of permit that allows a miner to keep rights over an offshore area (typically after exploration) without actively mining it yet — essentially 'parking' the area while they decide whether to develop it or while market conditions change.\n\n**What this law does:**\n- **Charges annual fees**: Licence holders must pay a fee every year to the **Designated Authority** (the government body managing the licence).\n- **Caps the fee**: The fee cannot exceed **$1,000 per block** covered by the licence at the start of each year. The exact calculation method is set out in regulations.\n- **Sets payment timing**: Fees are due **one month after** each year of the licence term begins.\n- **Penalises late payment**: If you don't pay on time, you owe a penalty of **0.33% per day** on the unpaid amount (roughly 10% per month).\n- **Makes debts recoverable**: Unpaid fees and penalties can be sued for in court as debts owed to the Commonwealth.\n- **Joint liability**: If multiple parties hold the licence together, they are **jointly and severally liable** — meaning the government can chase any one of them for the full amount.\n\n**Why it matters**: This ensures the Commonwealth receives revenue for holding rights over offshore mineral areas, and discourages companies from sitting on licences indefinitely without paying."}},"importantCases":[],"_links":{"self":"/api/acts/offshore-minerals-retention-licence-fees-act-1994","history":"/api/acts/offshore-minerals-retention-licence-fees-act-1994/history","analysis":"/api/acts/offshore-minerals-retention-licence-fees-act-1994/analysis","conflicts":"/api/acts/offshore-minerals-retention-licence-fees-act-1994/conflicts","importantCases":"/api/acts/offshore-minerals-retention-licence-fees-act-1994/important-cases","documents":"/api/acts/offshore-minerals-retention-licence-fees-act-1994/documents"}}