Petroleum and Geothermal Energy Safety Levies Regulations 2022

This instrument rests on a small number of operational concepts. Each is defined or tied to definitions within the Work Health and Safety (Petroleum and Geothermal Energy Operations) Regulations 2022 or the Petroleum (Submerged Lands) Act 1982 where indicated.

• Safety system: The regulations treat two kinds of safety system for levy purposes, safety cases and DSMS (regulation 3). Whether a document is a safety case or DSMS, and whether it is “in force”, is determined by the corresponding WHS petroleum regulations cited in regulation 6 (see WHS regs 26 and 68 as prescribed by regulation 6(1) and (2)). The regulations therefore defer substance of the safety-system concept to the WHS instrument (regulations 5 and 6).

• Person responsible: Liability to pay the safety levy is tied to the person responsible for the safety system. Regulation 7 identifies this person in relation to safety cases as the operator of the facility (as defined in the WHS petroleum regulations, reg 4 of that instrument) and, for DSMS, as the diving contractor (as defined in WHS petroleum regulation 68). The regulations therefore couple financial liability to statutory safety responsibilities created by the WHS regime.

• Levy period: The instrument sets fixed quarterly levy periods (regulation 8), and provides a special first levy period that runs from commencement of the WHS provisions to 30 June 2022 (regulation 23). Each levy is assessed after the relevant levy period (regulation 11(1)).

• Classification and complexity rating: The CIPS must classify each safety system after the levy period as belonging to one or more classes A to F (regulation 10). Each class is described in general terms (extreme to minimal complexity) and is linked to a complexity rating number in regulation 9: the rating differs depending on whether the safety case is for an offshore operation safety case (higher ratings) or not (regulation 9(1) and Table). The CIPS has an open-ended discretion to consider other matters when assessing complexity but must, without limiting matters, have regard to the operation’s nature and extent, workforce size, level of risk to health and safety and whether inspection, maintenance or repair activities were undertaken at facilities during the period (regulation 10(4)).

• Levy amount inputs: Regulation 9 identifies the numeric inputs used to compute the levy: R ($11 000), D or P (the number of days the operation was carried out in the levy period or part) and the complexity rating C. The levy is calculated using a formula set out in regulation 9 for periods wholly in one class and a pro rata approach where the classification varies across parts of the levy period (regulation 9(3)-(4)). The table in regulation 9(1) gives the mapping from class to complexity rating for onshore and offshore operation safety cases.

• Assessment, reassessment, objection and review: The procedural chain is assessment by CIPS after the levy period (regulation 11), notice content and timing requirements for assessment notices (regulation 11(2)-(3)), ability for CIPS to reassess under specified grounds and time limit (regulation 12), formal reassessment notices with specified content (regulation 13), objection grounds and forms (regulations 14-16), CIPS determination obligations and time limits (regulation 17), requirements for adjusted levy notices or withdrawal notices after objection (regulations 18-19), and a right to apply to the State Administrative Tribunal for review within prescribed periods (regulation 20).

• Remedies and financial adjustments: The regulations require refunding overpayments or penalties related to overpayments where applicable (regulations 13(4), 18(5) and 19(2)). They set a penalty rate of 20% per annum for penalty amounts (regulation 21).

Each of these core concepts has direct operational consequences for recordkeeping, compliance timing and financial modelling by parties responsible for safety systems. The regulations often link back to companion WHS regulations or definitions in other Acts rather than restating detailed definitional content, so users must consult those instruments to resolve the technical meaning of “operator”, “facility”, “pipeline” and whether a safety system is in force (regulations 5-7, 9(1)).

The regulations create recurring obligations for identifiable parties who hold or operate safety systems under the WHS petroleum regulations.

Primary liable parties

• Operators of facilities associated with a safety case. Regulation 7(1) identifies the person responsible for a safety case as the operator of the facility associated with the operation, referencing the WHS petroleum regulations’ definition of operator (WHS regs r 4). Where a safety case is “in force” for an operation as defined by the WHS instrument, that operator will be the person from whom the levy is sought (regulation 6(1) and 7(1)).
• Diving contractors for DSMS. Regulation 7(2) ties liability for levies on diving operations to the diving contractor as defined in the WHS petroleum regulations (regulation 68 of the WHS instrument), when a DSMS is in force (regulation 6(2) and 7(2)).

Secondary and contingent effects

• Companies that carry out operations in the adjacent area (offshore) will face different complexity ratings where the safety case is an “offshore operation safety case” (regulation 9(1)). The definition in regulation 9(1) excludes certain pipeline-related operations from the offshore operation safety case category, so pipeline operators who hold pipeline licences under the Petroleum (Submerged Lands) Act 1982 may fall into a different levy treatment (regulation 9(1) definitions referencing that Act).
• Entities conducting carbon dioxide injection projects into underground reservoirs are expressly captured where that activity is a petroleum operation by prescription (regulation 4). The prescribed activity listed in regulation 4 brings CO2 injection for subsurface storage into the levy regime when it meets the statutory definition of a petroleum operation in the Act.
• Parties that have changed operatorship, facility control, or diving contractor arrangements during a levy period should note that the CIPS may classify different parts of the levy period in different classes (regulation 10(2)-(3) and regulation 9(4)). This can affect which person is liable for which part of a levy; the regulations tie liability to the person responsible for the safety system.

Regulatory decision-makers and adjudicators

• The regulations place significant decision-making responsibilities on the CIPS. The CIPS must assess levy amounts, classify safety systems (regulations 10 and 11), issue notices (regulation 11(2)), undertake reassessments under specified grounds (regulation 12), and determine objections (regulation 17). The instrument therefore affects CIPS workload and discretion.
• The State Administrative Tribunal is the review body for decisions on objections, with a 42-day application window following the CIPS decision notice (regulation 20). The availability of tribunal review imposes potential litigation management needs for both the CIPS and levy payers.

Who bears the economic incidence

• The immediate payer is the person liable under the regulations,operators and diving contractors,who will incur the monetary cost of the levy calculated in accordance with regulation 9. The economic incidence in practice may be passed through to contractors, joint venturers, or customers via contracts and cost recovery mechanisms, but the statutory legal liability sits with the person responsible for the safety system (regulation 7).

Administrative parties affected

• Organisations responsible for WHS compliance should expect additional administrative burden: tracking the number of days an operation was carried out during each levy period, retaining evidence relevant to classification factors that the CIPS may consider (regulation 10(4)), preparing to respond to assessment notices within objection windows (regulations 11(2), 15 and 16), and managing potential reassessments up to two years after an original assessment (regulation 12(4)).

In short, the regulations primarily affect operators and diving contractors who hold statutory safety systems, with secondary effects on offshore operators, pipeline licence holders, and organisations administering safety systems or arranging access to facilities subject to safety cases or DSMS.

The regulations distribute clear duties to both the administrative decision-maker (CIPS) and liable persons, and they create procedural rights for review and objection.

Duties of the liable person

• Maintain records sufficient to evidence the number of days on which the operation was carried out in each levy period. The levy calculation depends on the number of days D or P (regulation 9(3)-(4) and 11(2)(d), 13(2)(d), 18(3)(d)).
• Ensure the person responsible for the safety system is correctly identified in light of the WHS definitions of operator and diving contractor (regulation 7). Changes in operatorship or contracting could alter who is legally liable for a levy.
• Respond to assessment and reassessment notices, including exercising the right to object within the prescribed period (regulations 11(2)(f), 15 and 16).
• Pay the levy amount by the day specified in the notice, which must be not earlier than 30 days after issue of the notice (regulation 11(3) together with regulation 22(2)). Late payment will attract the penalty amount prescribed (regulation 21).

Duties of CIPS

• Classify each safety system after the end of the levy period and assess the levy amount in accordance with regulation 9 (regulations 10(2), 11(1) and 11(2)-(3)). Classification may cover an entire levy period or parts of it (regulation 10(2)-(3)).
• Provide assessment notices with prescribed content including issue date, levy period, identifying number, number of days of operation, classification(s) and a notice of rights to object within 28 days or any longer period allowed by CIPS (regulation 11(2)(a)-(f)).
• Undertake reassessments where appropriate under the enumerated grounds in regulation 12(1), but only within two years of the original assessment (regulation 12(4)), and issue reassessment notices with prescribed content that set out recalculated amounts, unpaid portions and any penalty amounts (regulation 13(1)-(2)).
• Determine objections and give written decision notices that include reasons and notice of right to apply to the State Administrative Tribunal (regulation 17(2)). The CIPS must determine objections within 28 days or give the objector a written notice proposing a longer period (regulation 17(3)-(4)).

Rights of the liable person

• Right to receive specified information in an assessment or reassessment notice (regulations 11(2) and 13(2)). The notices must contain the information necessary to understand and challenge the assessment, including classification details and number of operational days.
• Right to object on the ground of an error in classification and other statutory grounds (regulation 14). The form of objection must include a copy of the assessment notice (regulation 16).
• Right to a CIPS determination with reasons and to proceed to State Administrative Tribunal review of that determination (regulation 17(2)(d) and regulation 20).
• Right to an adjusted notice and, where appropriate, to refunds if excess levy or penalty was paid (regulations 13(4), 18(5) and 19(2)(b)). If CIPS withdraws an assessment following an objection, the person is entitled to a refund of levy and penalty amounts paid in relation to that assessment or reassessment (regulation 19(2)(b)).

Procedural constraints and limits

• The objection period is prescribed as 28 days after the day the assessment notice was issued, unless CIPS allows a longer period (regulation 15). An objection must include the assessment notice (regulation 16).
• The State Administrative Tribunal review application must be made within 42 days after the day on which the decision notice is given, subject to the Tribunal’s power to extend (regulation 20).
• Reassessments by CIPS can be made irrespective of whether the levy has been paid, but cannot be initiated more than two years after the original assessment (regulation 12(3) and (4)).

Other duties of note

• The CIPS is required to follow particular timing for when a levy amount becomes payable after issuing notices; the specified day must be not earlier than 30 days after notice issue for assessment and reassessment notices (regulations 11(3), 13(3), 18(4) and 22(2)). This imposes a minimum statutory lead time between notice and due date.

These duties and rights form a compact administrative framework: CIPS has broad classification and reassessment powers with specific notice and timing obligations, while liable persons have limited but structured procedural safeguards including objection and tribunal review rights.

The regulations set out the financial penalty mechanics, timing for payment, and the administrative steps that trigger payment obligations. The broader enforcement and recovery mechanisms are governed by the Act; the regulations supply the numerical and procedural parameters.

Penalty rate and calculation

• Regulation 21 prescribes the penalty rate for the purposes of section 12(1) of the Act as 20% per annum. The regulations do not set out a compound or simple interest rule in text provided; they specify only the prescribed rate to be applied under the Act’s penalty provisions (regulation 21). Parties should therefore consult the Act for the precise statutory mechanism by which penalty amounts are calculated using the prescribed rate.

When payment is due

• A levy amount is due on the day specified in the relevant notice, being an assessment notice or a notice of adjustment under regulation 18(2)(c) (regulation 22(1)-(2)). The rules require that the payment date in the notice not be earlier than 30 days after the issue date of the notice for both original assessments and reassessments (regulation 11(3), regulation 13(3) and regulation 18(4)). This creates a minimum 30-day interval between notice issue and due date.

Late payment consequences

• If a levy amount is unpaid by the specified date, a penalty amount will be owing under the Act, using the rate fixed in regulation 21. The regulations require reassessment notices and adjusted notices that increase the levy to specify unpaid amounts and any penalty amounts that are owing (regulation 13(2)(g) and regulation 18(3)(g)). They also require that a notice specifying an increased amount include a payment date for the additional amount not earlier than 30 days after issue (regulation 13(3), 18(4)).

Administrative enforcement pathways

• The regulations vest the initial enforcement and collection steps in the notice and reassessment procedures of the CIPS. The regulations do not themselves set out debt recovery tools such as garnishee, distraint or court enforcement; these mechanisms will lie in the parent Act or general debt recovery law. The provided text therefore indicates that CIPS will specify unpaid amounts and penalties in notices, and that penalties at the prescribed rate are charged when amounts remain unpaid, but does not recite subsequent enforcement steps.

Reassessment and refunds

• If an amount of safety levy in excess of the amount specified has been paid, the CIPS must refund the excess and any penalty paid in relation to the excess (regulation 13(4) and regulation 18(5)). If an objection leads to finding that the person is not liable, the regulation requires CIPS to withdraw the assessment and refund any levy or penalty paid in relation to that assessment or reassessment (regulation 19(1)-(2)).

Time limits that affect enforcement

• A reassessment is subject to a two-year outer limit after the original assessment (regulation 12(4)). This limits the period in which CIPS can reopen an assessment and therefore limits the period in which a payer may expect further demands related to that original assessment.
• The CIPS must notify the person of increased amounts and penalties and give at least 30 days to pay the increased amount (regulation 13(3), 18(4)), which affects when penalties can begin to accumulate for the new amount.

Procedural protections

• The rules for objection (regulations 14-17), adjustment notices (regulation 18) and the right to tribunal review (regulation 20) provide procedural protection against erroneous levies, with explicit refund obligations in cases where assessments are reduced or withdrawn (regulations 13(4), 18(5) and 19(2)). These procedural protections operate alongside the penalty mechanism and affect when penalties are legitimately owed.

Practical enforcement implications

• The fixed penalty rate of 20% per annum is relatively high in nominal terms. Parties should factor this into cash-flow risk modelling where a levy is disputed or payment is deferred. Because the regulations allow reassessment irrespective of payment (regulation 12(3)) and because penalties may be specified in reassessment notices for increased amounts (regulation 13(2)(g)), legal and commercial advisers will need to carefully weigh the cost of paying pending objections versus the exposure to penalty charges if the objection fails.

The regulations therefore define a payment regime that provides minimum notice periods before payment is due, a specified penalty rate for unpaid amounts, and explicit refund and adjustment obligations. They do not, within the text provided, set out the full arsenal of debt recovery powers; practitioners should consult the parent Act and general enforcement mechanisms for the complete enforcement picture.

The regulations are tightly linked to the Work Health and Safety (Petroleum and Geothermal Energy Operations) Regulations 2022, the Work Health and Safety Act 2020, and the Petroleum (Submerged Lands) Act 1982, as well as the Petroleum and Geothermal Energy Safety Levies Act 2011. These cross-references structure both who is liable and what constitutes a safety system for levy purposes.

Linkage to the WHS petroleum instruments

• The regulations expressly prescribe particular provisions of the WHS petroleum regulations as defining safety-system concepts for the purposes of the levy Act. Regulation 5(1) prescribes WHS petroleum regulation 71 for the purposes of section 3B(2)(a) of the Act, and regulation 5(2) prescribes WHS petroleum regulation 27 for section 3E(2)(a) of the Act. Regulation 6 then defines when a safety case or DSMS is “in force” by reference to WHS petroleum regulations 26 and 68 respectively. Regulation 7 ties the person responsible for the safety system to definitions of operator and diving contractor in the WHS petroleum regulations (WHS regs r 4 and r 68). Practically, therefore, interpretation of the levy obligations depends on the content and operation of the WHS petroleum regulations and the WHS Act 2020.

Commencement and transitional arrangements with the WHS Act

• The regulations do not commence in full until Part 15 Division 3 Subdivision 2 of the Work Health and Safety Act 2020 comes into operation (regulation 2(b)). The first levy period is transitional, being from the day those WHS provisions come into operation to 30 June 2022 (regulation 23). The notes cross-reference Work Health and Safety Act 2020 Part 16 Division 12 Subdivision 2 and WHS petroleum regulations Part 6 for transitional matters relevant to these regulations.

Interaction with petroleum laws for offshore operations

• The concept of an “offshore operation safety case” in regulation 9(1) is framed by reference to operations “in the adjacent area” and explicitly excludes operations associated with pipelines that are subject to or will be subject to a pipeline licence under the Petroleum (Submerged Lands) Act 1982. Regulation 9 therefore imports the Petroleum (Submerged Lands) Act 1982 definitions of pipeline and pipeline licence (section 4(1) of that Act) to delineate levy treatment for offshore safety cases versus pipeline operations.

Objection and tribunal review regimes

• The regulations provide a statutory route to administrative objection and then to review by the State Administrative Tribunal (regulations 17(2)(d) and 20). This links the levy regime to the broader Western Australian administrative law infrastructure and to the State Administrative Tribunal’s procedures and powers, including its ability to extend time limits for review applications (regulation 20(2)).

Overlap with other financial or regulatory instruments

• The regulations prescribe a monetary R value ($11 000) and complexity ratings which determine levy quantum. The 2024 amendment (SL 2024/97) indicates that these numeric inputs are amenable to change through subordinate legislation that amends the regulations (compilation table and reg 9 note). Those changes interact practically with financial reporting, tax planning and contract arrangements that allocate cost between joint venture participants or service providers.

Scope for interpretive cross-referencing

• Because many definitional points are left to the WHS petroleum regulations and the Petroleum (Submerged Lands) Act, disputes about whether an operation is within scope of the levy, who is the operator or diving contractor, or whether a safety system is in force will often require cross-referencing and interpreting multiple instruments together. For advisers, this means that reading the levy regulations in isolation is insufficient; the underlying WHS and petroleum statutes and regulations must be consulted to resolve key questions of applicability.

In short, the levy regulations create obligations that are functionally dependent on WHS and petroleum law definitions and transitional timetables, while also linking to administrative law review pathways. Practitioners must therefore coordinate compliance and dispute strategy across these related instruments.

The regulations were originally published as the Petroleum and Geothermal Energy Safety Levies Regulations 2022 and their compilation table records subsequent amendments. The compilation table and inline amendment notes in the text supply a concise legislative history.

Key milestones recorded in the instrument

• Original instrument: The Petroleum and Geothermal Energy Safety Levies Regulations 2022 were published as SL 2022/29 on 11 March 2022. Part 1 (other than regulation 3) commenced on 11 March 2022, and regulation 3 together with Parts 2-8 commenced on 31 March 2022 (see compilation table and regulation 2).
• Amendment: Mines and Petroleum Regulations Amendment (Fees and Charges) Regulations 2024, Part 10 (SL 2024/97), amended the instrument. The amendment is noted in the text: regulation 9 was amended by SL 2024/97 r. 21, and the compilation table states that this amendment was published 12 June 2024 and commenced on 1 July 2024 (see compilation table and the footnote to regulation 9).

What the amendment changed

• The instrument contains an inline note “[Regulation 9 amended: SL 2024/97 r. 21.]” adjacent to the levy calculation regulation. The presence of this annotation indicates that SL 2024/97 altered regulation 9. The version provided shows the current R value ($11 000) and complexity rating table (classes A-F, with separate offshore ratings). Because the compiled document reflects the amendment, advisers should rely on the current numeric values shown in regulation 9, and note that these were updated by SL 2024/97 effective 1 July 2024.

Commencement sequencing

• Regulation 2 ties the operative commencement of most of the levy regulations to the commencement of particular WHS Act provisions. The compilation table restates commencement dates: Part 1 (other than r. 3) began on 11 March 2022, with the remainder commencing 31 March 2022, consistent with SL 2022/29 and SL 2022/18 cl. 2.

Transitional provision

• Regulation 23 creates a transitional “first levy period” commencing on the day the WHS Act Part 15 Division 3 Subdivision 2 came into force and ending on 30 June 2022. The Notes cross-reference transitional provisions in the Work Health and Safety Act 2020 Part 16 Division 12 Subdivision 2 and the WHS petroleum regulations Part 6 for matters relevant to the regulations.

How to track future amendments

• The compiled instrument includes a compilation table and notes indicating subordinate instruments that amended these regulations. Practitioners should monitor the Western Australian legislation website and subordinate instrument registers for further changes to numeric inputs (for example the R value or complexity ratings), or procedural amendments affecting notice content, objection periods, penalty rates or definitions.

In summary, the principal amendment recorded in the current compilation was the 2024 adjustment noted in SL 2024/97, which modified regulation 9. The regulations’ commencement is staged and linked to WHS Act commencements, and a transitional first levy period was specified. Future changes to numeric settings and procedural matters are possible by subsequent subordinate instruments and are reflected in the compilation table.

The text provided does not record any case law, tribunal decisions, or litigation history arising from these regulations. The instrument itself names the State Administrative Tribunal as the review forum for decisions on objections (regulation 17(2)(d) and regulation 20). That creates a statutory right to administrative review, and the Tribunal’s published decisions would be the place to find any authority construing points of interpretation in the regulations. No cases, appellate or tribunal, are cited in the regulations text or compilation notes presented.

What the instrument does signal about dispute pathways

• The regulations supply a built-in administrative objection mechanism and a route to external review by the State Administrative Tribunal (regulations 14-20). This pathway means that disputes about classification, levy quantum or liability can progress through two levels: administrative internal resolution with the CIPS, and independent review in the Tribunal. The regulations prescribe time limits and procedural requirements that litigants and their advisers must observe: objections within 28 days of assessment notice (regulation 15), the CIPS’ decision within 28 days or with a proposal for an extended period (regulation 17(3)-(4)), and Tribunal applications within 42 days of the decision notice (regulation 20(1)).

Implications for evidence and argument

• Given the discretion conferred on the CIPS to classify safety systems “if the CIPS considers” an operation meets a description and the non‑exhaustive list of factors the CIPS must have regard to (regulation 10(3)-(4)), litigation or Tribunal review is likely to focus on evidentiary matters (for example, numbers of operational days, the nature and extent of the operation, workforce, inspection and maintenance activities) and on whether the CIPS properly exercised its discretion or made an error of law in classification or assessment (regulations 10, 11 and 12).

Where to look for litigation history

• To discover litigation arising from these regulations, practitioners should consult State Administrative Tribunal decisions, Western Australian court databases, and published decisions list databases. The regulations themselves do not provide a registry of decisions.

In short, no litigation history is recorded in the instrument text provided. The statutory pathway to review in the State Administrative Tribunal is established, and that will be the primary source of any future interpretive case law.

Several practical, interpretive and administrative traps appear from the regulatory text. These are matters where the written requirements interact with operational realities to produce risk for operators, diving contractors, advisers and the CIPS.

Classification discretion and uncertainty

• The CIPS classifies safety systems post‑period “if the CIPS considers” the operation meets the description in regulation 10(3). The regulation lists factors that must be considered but expressly states they are not limiting (regulation 10(4)). This creates a wide administrative discretion and the potential for variance between assessments. Parties cannot predict classification with certainty from a formula alone; evidence about the operation’s nature, extent, personnel and risk profile will materially affect classification outcomes.

Counting days on which the operation was carried out

• The levy calculation depends on the number of days on which the operation was carried out during the levy period (regulations 9(3) and 11(2)(d)). The regulations do not define “day on which the operation was carried out”. Is a day counted where maintenance or minimal activity occurred? Does a single-hour activity count as a full day? The absence of a statutory definition creates operational ambiguity that can materially affect levy quantum. Recordkeeping procedures must therefore be established, and these records will be front-line evidence in any objection.

Offshore versus onshore differentiation and pipelines

• Offshore operation safety cases attract different complexity ratings (regulation 9(1)), but the definition excludes operations associated with pipelines that are subject to a pipeline licence under the Petroleum (Submerged Lands) Act 1982. Parties operating in adjacent areas must determine whether a given activity is an “offshore operation safety case” or a pipeline-related operation. If the activity is near or becomes subject to a pipeline licence, the levy class and the resulting levy may change, creating potential reclassification risk and retrospective reassessments.

CO2 injection and scope creep

• Regulation 4 prescribes injecting gases consisting predominantly of carbon dioxide into an underground reservoir or other subsurface formation as a prescribed activity for the definition of petroleum operation (Act s 3D(3)(g)). This captures carbon dioxide storage projects and could pull CCS-type activities into the levy regime in ways that operators of such projects might not have anticipated. Advisers should check whether their project is captured and the potential cost impact.

Timing traps: notice issue dates and payment dates

• Assessment and reassessment notices must include an issue date and the levy due date must not be earlier than 30 days after the issue date (regulation 11(3), regulation 13(3), regulation 18(4) and regulation 22). However, CIPS can reassess and increase levies within two years, and reassessments can specify unpaid parts and penalties that then become payable. Parties that wait until after payment to object risk penalty exposure if they lose their objection. The 30-day minimum lead time is statutory, but decisions to pay, dispute or contest require careful cash-flow planning.

Objection and review clocks

• The objection period is 28 days (regulation 15) and the tribunal review window is 42 days from the decision notice (regulation 20(1)). These are relatively short windows in which to prepare forensic submissions, collect records of days worked, and commission expert reports if classification is contested. Missing these windows will require an extension application to the Tribunal, for which reasonable grounds will need to be shown (regulation 20(2)).

Reassessments within two years

• The CIPS may reassess for a broad set of reasons including “there has been an error” or “it is otherwise appropriate to do so” (regulation 12(1)(a)-(d)), but cannot reassess more than two years after the original assessment (regulation 12(4)). This two-year window creates potential lingering audit risk; businesses need to be prepared for reassessments and potential retrospective payments or refunds over that period.

Refund handling and overpayments

• The regulations require refunding of excess payments and penalties related to excess payments (regulation 13(4), regulation 18(5) and regulation 19(2)). However, recovering an overpayment requires an action by the CIPS after reassessment or objection. Parties that have overpaid should follow up promptly and maintain documentation to establish the overpayment.

Ambiguity over the calculation formula

• The regulation identifies the components of the levy calculation,R ($11 000), the number of operational days and the complexity rating,but the formulaic expression in the provided text is not reproduced here. Practitioners must therefore confirm the exact arithmetic by reference to the authoritative version of regulation 9, and take note of the 2024 amendment (SL 2024/97) which altered regulation 9.

Administrative dependency on WHS definitions

• The regulations frequently defer to the WHS petroleum regulations for crucial definitions (safety case, DSMS, operator, diving contractor). Any change in those WHS definitions or in their interpretation will feed directly into levy liability. Parties should therefore monitor WHS legislative amendments and guidance closely.

In summary, the principal gotchas arise from discretionary classification, counting of operational days, interaction with pipeline licensing and offshore definitions, short objection and review windows, reassessment exposure for two years, and dependency on WHS definitions. Each of these can affect levy quantum, timing of payments and exposure to penalties.

Compliance requires a combination of recordkeeping, governance, timing discipline and procedural readiness. The following practical checklist maps the regulatory requirements (with references) to discrete compliance actions.

1. Establish whether the operation is captured

• Confirm whether the operation has a safety system that is “in force” as defined in the Work Health and Safety (Petroleum and Geothermal Energy Operations) Regulations 2022 (regulation 6 refers to WHS regs r 26 and r 68). Determine whether the document is a safety case or a DSMS and whether the activity is a petroleum or geothermal operation as the Act and regulations prescribe.
• Specifically check whether injecting gases predominantly carbon dioxide into an underground reservoir is part of your activities; regulation 4 prescribes that activity for the definition of petroleum operation.

2. Identify the person responsible

• Determine who is the “person responsible” for the safety system. For safety cases, the person responsible is the operator of the facility referenced in the WHS petroleum regulations; for diving operations with a DSMS, the person responsible is the diving contractor (regulation 7). Preserve contractual and statutory records establishing operatorship or contractor status.

3. Maintain day-count records

• Keep contemporaneous, auditable records of the number of days the operation was carried out in each levy period. The levy calculation uses the number of operational days (regulation 9(3)-(4), 11(2)(d)). Because the regulations do not define “day on which the operation was carried out”, record operational logs, maintenance logs, inspection records and any hourly timesheets that can substantiate whether a day should be counted.

4. Prepare material relevant to classification

• The CIPS will classify safety systems based on a non-exhaustive list of factors, including nature and extent of operation, workforce size, level of health and safety risk and whether inspection, maintenance or repair activities were undertaken (regulation 10(4)). Compile documentation that evidences these factors: operations descriptions, workforce rosters, risk assessments, incident reports, inspection and maintenance logs.

5. Anticipate the levy period and assessment cycle

• Note the quarterly levy periods (regulation 8) and the first levy period transitional arrangement (regulation 23). Expect the CIPS to assess after the end of each levy period (regulation 11(1)). Assign responsibility within the organisation to monitor for assessment notices and ensure timely action.

6. Review assessment notices immediately

• When the CIPS issues an assessment notice, check that it contains the required information under regulation 11(2): issue date, levy period, identifying number, number of days, classification(s) and advice about the right to object within 28 days. Ensure the payment date is not earlier than 30 days after issue (regulations 11(3) and 22(2)).

7. Object properly if necessary

• If you contest classification or any other grounds provided in the Act and regulations, prepare and lodge an objection within 28 days of the assessment notice (regulation 15). Ensure the objection includes a copy of the assessment notice as required (regulation 16) and sets out grounds, particularly where regulation 14 allows an objection on the basis of error in classification.

8. Track time limits for CIPS and Tribunal review

• The CIPS must determine objections and provide reasons within 28 days or provide a proposed extended period to the objector (regulation 17(3)-(4)). If dissatisfied with the CIPS decision, be ready to apply to the State Administrative Tribunal within 42 days of the decision notice (regulation 20(1)). Put diary reminders and escalation procedures in place.

9. Manage payment versus dispute risks

• Because reassessments may be made irrespective of whether amounts have been paid (regulation 12(3)), and because penalties at 20% p.a. apply to unpaid amounts (regulation 21), weigh the commercial and legal costs of paying pending an objection versus potential penalty exposure. Seek tax and accounting advice about treatment where payment is made but subsequently refunded under regulation 13(4), 18(5) or 19(2).

10. Respond to reassessments and adjusted notices

• If CIPS issues a reassessment or an adjusted notice following an objection, check that the notice contains the required details (regulation 13(2) and regulation 18(3)), in particular the recalculated levy amount, any unpaid prior amounts, and the date the additional amount is payable (not earlier than 30 days after issue; regulation 13(3) and regulation 18(4)). Where reassessments increase liability, consider immediate action to avoid additional penalty accrual.

11. Seek Tribunal review promptly where necessary

• If the CIPS decision is adverse, consider State Administrative Tribunal review within the 42-day period. The Tribunal may extend time where reasonable grounds exist, but extensions are discretionary (regulation 20(2)).

12. Ensure financial and accounting systems can handle refunds and adjustments

• If overpayments or payments in error occur, the regulations require refunds of excess levy and associated penalty amounts (regulation 13(4) and regulation 18(5)). Ensure internal finance processes can claim and reconcile refunds and that accounting entries reflect potential future reassessment risk for up to two years (regulation 12(4)).

13. Monitor legislative and regulatory changes

• Regulation 9 was amended by SL 2024/97 (see compilation table). Maintain a process to monitor subordinate instrument registers and the WHS petroleum regulations for definition or numerical changes that will affect levy quantum or coverage.

14. Seek early legal or compliance advice

• Given the CIPS discretion on classification, the short objection windows and the two-year reassessment exposure, obtain early legal or compliance guidance when complex facts arise (for example, offshore operations near pipeline thresholds, CO2 injection projects, or periods with partial operational activity).

Following this checklist aligns internal processes with the prescriptive elements of the regulations and reduces the risk of late payment penalties, missed objections, or unfavourable classification outcomes.