42Interest on unpaid royalty

42 Interest on unpaid royalty (1) Subject to subsection (2), if any royalty remains unpaid after the time it becomes due and payable, or a payment on account of royalty remains unpaid after the liability to make the payment accrues, the person liable to pay the royalty or make the payment on account of royalty is, in addition to that liability, liable to pay interest on the amount outstanding at an annual rate calculated by adding 7% to the monthly average yield of 90-day bank accepted bills published by the Reserve Bank of Australia for: (a) if the day on which the royalty became due and payable or payment on account of royalty accrued is on or after the commencement of the Mineral Royalty Amendment Act 2002 but before 1 July 2003 – May 2002; or (b) if the day on which the royalty became due and payable or payment on account of royalty accrued is on or after 1 July 2003 – the month of May in the financial year immediately preceding the financial year in which the day occurs, and computed from the day when the amount became outstanding to and including the day on which the interest is calculated. (2) Where an extension of time for the payment of royalty or on account of royalty has been granted under section 41, the interest payable under this section shall be computed from such date as the Secretary determines, being not earlier than the date on which the royalty would have been due and payable or the liability to make the payment on account of royalty accrued, had that extension of time not been granted.

Part IV Collection and recovery of royalty Mineral Royalty Act 1982 40