{"id":"C2004A02462","name":"Offshore Minerals (Works Licence Fees) Act 1981","slug":"offshore-minerals-works-licence-fees-act-1981","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"85 of 1981","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":6898,"registerId":"commonwealth-C2004A02462-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 (Works 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 a works 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 meaning as they have in that Act.","sortOrder":2},{"sectionNumber":"4","sectionType":"section","heading":"Works licence fees","content":"#### 4 Works licence fees\n\n  (1) A works licence holder must pay to the Designated Authority, in respect of each year of the term of the licence, a fee calculated at the rate prescribed by the regulations for each hectare or part of a hectare of the works area.\n  (2) The works area for a works licence is the area specified in the licence under paragraph 278(1)(c) of the Offshore Minerals Act 1994.\n  (3) Subject to subsection (4), the amount of the fee is to be calculated at the prescribed rate for each hectare or part of a hectare of the licence area.\n  (4) The prescribed rate is not to exceed $100 per hectare or part of a hectare.","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 the holder of a works licence 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 holder of a works licence to the Commonwealth and are recoverable in a court of competent jurisdiction.\n  (2) Fees and other amounts referred to in subsection (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":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"summary":{"complexity_score":3,"scope_assessment":{"changed":true,"description":"The Act was originally enacted in 1981 under the framework of the 'Minerals (Submerged Lands) Act 1981', but its operative references have since been updated to align with the 'Offshore Minerals Act 1994'. This represents a scope shift in the Act's legislative anchor — it now operates within a different (and broader) regulatory regime than originally intended, though its core purpose of imposing works licence fees remains unchanged."},"complexity_factors":["Cross-references to another Act (Offshore Minerals Act 1994) for definitions and licence area specifications, requiring readers to consult multiple pieces of legislation","The fee rate is not fixed in the Act itself but delegated to separate regulations, creating uncertainty about the actual amount payable","The definition of 'year' has three distinct sub-categories covering different scenarios in a licence term, which requires careful reading","Joint and several liability provisions (multiple licence holders) have legal implications that may not be intuitive to non-lawyers","The compounding daily late payment penalty calculation (one-third of 1% per day) requires mathematical understanding to appreciate its financial impact"],"plain_english_summary":"This Act creates an annual fee regime for holders of offshore works licences (e.g., for pipelines or platforms) in Australian offshore mineral areas, charging per hectare up to a $100/ha cap with the exact rate set by regulation. Fees are due one month after each licence year begins; joint holders are jointly and severally liable. Late payments incur a daily penalty of one‑third of 1% (~0.33%) and unpaid amounts (fees plus penalties) become debts recoverable by the Commonwealth."},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"The Act's scope is limited and self‑contained: it establishes an annual area‑based fee regime for works licences (who pays, when, and how much is recoverable), caps the per‑hectare rate at $100, creates joint/several liability for multiple holders, sets payment timing and a daily penalty, and allows recovery as a Commonwealth debt (see ss4, 4A, 4B, 5, 6). It does not add obligations beyond charging and collecting those licence fees, though it relies on definitions and delegated regulation for implementation (s3(2); s7)."},"complexity_factors":["Area‑based fee calculation with per‑hectare charging and a statutory cap ($100/ha) creates straightforward arithmetic but requires accurate area measurement (s4(1)–(4)).","Definition of 'year' for licence terms includes full and partial 12‑month periods tied to provisional acceptance and anniversaries, producing prorating/transition rules (s3(1)).","Joint and several liability when licences have multiple holders concentrates recovery risk and affects private contractual allocation of payment obligations (s4A(1)–(2)).","Payment timing (one month after year begins) and a daily late‑payment charge of one‑third of 1% introduce continuous accrual; the provision does not explicitly state whether the charge compounds (s4B; s5).","Fees and penalties are debts due to the Commonwealth and are recoverable in court, creating enforcement and collection pathways (s6(1)–(2)).","Reliance on other instruments and institutions: the Designated Authority and several defined terms are sourced from other law (Offshore Minerals Act 1994 and regulations), and prescribed rates/details are delegated to regulations, adding cross‑instrument dependency (s3(2); s4(1),(3); s7)."],"plain_english_summary":"This Act requires holders of offshore minerals works licences to pay an annual, area‑based fee to the Designated Authority, charged per hectare (or part) of the licensed works area and capped at $100 per hectare. It makes the licence holder liable (jointly and severally if there are multiple holders), sets the payment timing and a daily late‑payment charge, treats unpaid amounts as debts recoverable by the Commonwealth, and leaves detailed rates and administrative rules to regulations."},"issue_detection":{"absurdities":[{"type":"self_contradicting","section":"4(1) and 4(3)","severity":"high","reasoning":"Section 4(2) specifically defines 'works area' by reference to paragraph 278(1)(c) of the Offshore Minerals Act 1994, making it a distinct and defined term. Section 4(3) then substitutes 'licence area' without definition or reconciliation. Both subsections purport to govern the same fee calculation, yet use different area bases. This creates genuine legal uncertainty about which area a fee-payer must use to calculate their liability.","confidence":0.95,"description":"Section 4(1) states the fee is calculated per hectare of the 'works area', while section 4(3) states the fee is calculated per hectare of the 'licence area'. These are two different concepts, creating an internal contradiction within the same section about what area forms the basis of calculation."},{"type":"impossible_compliance","section":"4(4)","severity":"medium","reasoning":"Section 4(1) requires the fee to be 'calculated at the rate prescribed by the regulations', but section 7 only empowers (not requires) the Governor-General to make regulations. If no rate is prescribed, the fee is incalculable and the obligation in section 4(1) becomes unenforceable in practice, yet the penalty under section 5 would still theoretically accrue from the time payment becomes due under section 4B. A licence holder cannot comply with an obligation whose quantum is indeterminate.","confidence":0.82,"description":"The cap of $100 per hectare on the prescribed rate is rendered potentially meaningless because no minimum rate is set and no regulations are mandated to actually prescribe a rate. If no regulations are made prescribing a rate, section 4(1) imposes a fee obligation with no calculable amount, making compliance impossible."},{"type":"retroactive_impossibility","section":"2","severity":"medium","reasoning":"From 1981 until 1994, the Act purported to impose fee obligations calculated by reference to a provision (s278(1)(c) of the Offshore Minerals Act 1994) and definitions from a statute that had not yet been enacted. During this period, the 'works area' was undefined within this Act, making the fee calculation impossible. While this is likely a product of legislative updating over time, the current text of the Act creates a logical impossibility for the period 1981–1994 and no savings or transitional provision is apparent within the Act itself.","confidence":0.78,"description":"The Act commenced on the day the Minerals (Submerged Lands) Act 1981 commenced, but section 3(2) imports definitions from the Offshore Minerals Act 1994 — an Act that did not exist until 13 years after this Act commenced. At the moment of commencement, the definitional framework referenced in section 3(2) and section 4(2) (paragraph 278(1)(c) of the Offshore Minerals Act 1994) was entirely non-existent."},{"type":"other","section":"5","severity":"low","reasoning":"While not strictly a logical impossibility, a daily compounding-equivalent penalty of ~121.7% per annum applied to an already uncapped fee obligation creates a scenario where the penalty dwarfs the underlying obligation within months. There is no cap, no remission mechanism, and no discretion apparent in this Act to waive or reduce penalties. Combined with the fee calculation ambiguity in section 4, a holder may face massive penalties while genuinely uncertain about the correct fee amount to pay.","confidence":0.7,"description":"The penalty rate of one-third of 1% per day (approximately 121.7% per annum) is an extraordinarily high penalty interest rate that could quickly exceed the principal fee amount and potentially exceed the value of the licence itself, raising questions about whether compliance is economically rational or practically achievable for extended non-payment periods."}],"contradictions":[{"severity":"high","section_a":"4(1)","section_b":"4(3)","confidence":0.95,"description":"Section 4(1) bases the fee calculation on each hectare or part of a hectare of the 'works area', while section 4(3) — which also purports to govern how 'the amount of the fee is to be calculated' — uses 'licence area' instead. These are distinct legal concepts and cannot both simultaneously be the correct basis for calculating the same fee."},{"severity":"low","section_a":"4A(1)","section_b":"6(1)","confidence":0.62,"description":"Section 4A(1) states 'the licence holder is liable to pay the fee', while section 6(1) describes the fee as 'a debt due by the holder of a works licence to the Commonwealth'. Section 4A establishes the primary liability to the Designated Authority (per section 4(1)), while section 6(1) characterises the same obligation as a debt to the Commonwealth. Although section 6(2) deems amounts received by the Designated Authority to be received on behalf of the Commonwealth, the creditor identity is inconsistent — payment to whom discharges the primary obligation is ambiguous."},{"severity":"medium","section_a":"3(1)(c)","section_b":"4B","confidence":0.85,"description":"Section 3(1)(c) defines a 'year' as potentially a period of less than 12 months ending at the end of the licence term. Section 4B states the fee 'becomes payable one month after the day on which the year begins'. For a final partial year that is itself less than one month in duration, the fee would become payable after the year has already ended — meaning the fee falls due after the licence has expired and the obligation has theoretically lapsed, creating uncertainty about whether the fee is ever properly payable."}]},"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 works licences. It has not expanded beyond this narrow administrative function. The 1994 reference update (from the original Minerals (Submerged Lands) Act 1981 to the Offshore Minerals Act 1994) was a technical consolidation rather than a scope expansion."},"complexity_factors":["Very short statute (only 7 sections)","Minimal defined terms (only 'year' is explicitly defined in section 3)","Simple fee calculation methodology (prescribed rate per hectare)","Straightforward payment timing (one month after year begins)","Single cross-reference to the Offshore Minerals Act 1994 for definitions and works area specification","No nested exceptions or complex conditional logic","Clear penalty calculation (fixed daily rate on unpaid amounts)"],"plain_english_summary":"This law sets up a fee system for companies or individuals who hold **works licences** for offshore mineral exploration and mining in Australian waters.\n\n**What it does:**\n- Requires licence holders to pay an annual fee based on the size of their licensed area (calculated per hectare)\n- Caps the maximum fee at $100 per hectare (or part thereof)\n- Sets a payment deadline: fees are due one month after each year of the licence begins\n- Imposes a penalty for late payment: an extra charge of one-third of 1% per day on any unpaid amount\n- Makes these fees and penalties legally enforceable as debts owed to the Commonwealth\n\n**Who it affects:**\n- Companies or individuals holding **works licences** under the Offshore Minerals Act 1994 (these are permits allowing construction of structures like drilling platforms, pipelines, or other facilities needed for offshore mining)\n- The **Designated Authority** (the government body that administers these licences and collects the fees)\n\n**Why it matters:**\nThis law ensures that companies using Australia's offshore areas for mineral operations pay for the privilege. The fee structure helps recover administrative costs and ensures fair compensation for use of Commonwealth resources. The penalty provisions discourage late payment, ensuring timely revenue for government operations."}},"importantCases":[],"_links":{"self":"/api/acts/offshore-minerals-works-licence-fees-act-1981","history":"/api/acts/offshore-minerals-works-licence-fees-act-1981/history","analysis":"/api/acts/offshore-minerals-works-licence-fees-act-1981/analysis","conflicts":"/api/acts/offshore-minerals-works-licence-fees-act-1981/conflicts","importantCases":"/api/acts/offshore-minerals-works-licence-fees-act-1981/important-cases","documents":"/api/acts/offshore-minerals-works-licence-fees-act-1981/documents"}}