After section 102 of the Principal Act , the following sections are inserted in Division 5:

102AA.     Agreement to deferral of royalty

(1)  A person may apply to the Treasurer for a deferral of the obligation to pay an amount of royalty that the person would otherwise be liable, or become liable, to pay under this Act to the Crown.

(2)  The Treasurer, after consulting with the Minister in respect of an application made by a person under subsection (1) , may –

(a) agree to defer the person's obligation to pay an amount of royalty that the person would otherwise be liable, or become liable, to pay under this Act; or

(b) refuse to agree to defer the obligation.

(3)  The Treasurer may only agree to defer a person's obligation to pay an amount of royalty under this Act if the relevant criteria for deferral specified in an order under subsection (4) have been satisfied.

(4)  The Treasurer may, by order, specify the criteria for deferral.

(5)  The Treasurer may agree to defer an obligation under subsection (2) unconditionally or on conditions.

(6)  The conditions on which the Treasurer may agree to defer under subsection (2) an obligation of a person to pay an amount of royalty include, but are not limited to including, any one or more of the following conditions:

(a) a condition that the person enter into a payment plan, whereby the amount of the royalty is paid, in instalments, at intervals specified in the plan;

(b) a condition that the person pay, by a date, or dates, specified in the condition, interest, calculated in accordance with the rate specified in the condition, on the amount of royalty;

(c) a condition that the person pay the amount of the royalty by a date specified in the agreement.

(7)  An agreement under subsection (2) is to specify –

(a) the lease or licence to which the agreement relates; and

(b) the royalties to which the agreement relates or is to relate; and

(c) the period for which the agreement is in force; and

(d) any conditions on which the agreement is given.

(8)  Subject to section 102AB(3) , an agreement under subsection (2) remains in force for the period specified in the agreement.

102AB.     Effect of, and revocation of, agreement to defer royalty, &c.

(1)  If the Treasurer agrees under section 102AA(2) to defer an obligation of a person to pay an amount of royalty under this Act, then, despite section 102 , the person is not liable to pay, except in accordance with the conditions of the agreement, the amount of royalty, until –

(a) the end of the period for which the agreement is in force; or

(b) the date specified in a condition of the agreement as the date on which the amount of the royalty is due; or

(c) the agreement is revoked under subsection (3)  –

whichever occurs first.

(2)  If a person fails to comply with the conditions on which an agreement to defer his or her obligation to pay royalty is given under section 102AA(2) , the Treasurer may issue a notice of demand notifying the person of the failure and asking the person to show cause within 14 days after the date on which the notice is given to the person why the Treasurer should not revoke the agreement.

(3)  The Treasurer may, after 14 days after the date on which a notice is given to a person under subsection (2) , revoke an agreement under subsection (1) .