Regulation 8 of the Principal Regulations is rescinded and the following regulations are substituted:

8.     Royalty payable

(1)  For the purpose of section 102(1) of the Act, the prescribed rate of royalty payable by a lessee in respect of a mineral specified in Schedule 1 is specified in that Schedule.

(2)  For the purpose of section 102(1A) of the Act, the prescribed rate of royalty payable by a licensee in respect of a mineral specified in Schedule 1 is specified in that Schedule.

(3)  For the purpose of section 102(2)(b) of the Act, royalty is payable for each financial year within 30 days after the end of that financial year.

(4)  For the purpose of section 102(10) of the Act, the prescribed rate of royalty payable by a lessee or a licensee in respect of a mineral not specified in Schedule 1 and sold on or after 1 July 1996 is to be calculated in accordance with the following formula:

where –

R is the royalty;

ADV is the ad valorem percentage rate specified in subregulation (5) ;

N is the yearly net sales of the mineral for the immediately preceding year;

P is the yearly profit, if any, for the immediately preceding year;

C is the product of

where,

E is the exponential rate specified in subregulation (6) .

(5)  For the purpose of subregulation (4) , the ad valorem percentage rate is as follows:

(a) 1.2% for a period of 12 months ending at any time in the period 1 July 1996 to 30 June 1997 inclusive;

(b) 1.4% for a period of 12 months ending at any time in the period 1 July 1997 to 30 June 1998 inclusive;

(c) 1.5% for a period of 12 months ending at any time in the period 1 July 1998 to 30 June 1999 inclusive;

(d) 1.6% for a period of 12 months ending on or at any time after 1 July 1999.

(6)  For the purpose of subregulation (4), the exponential rate is as follows:

(a) 0.30 up to and including 30 June 1998;

(b) 0.35 from 1 July 1998 up to and including 30 June 2000;

(c) 0.40 on and after 1 July 2000.

(7)  For the purpose of section 102(11) of the Act, the prescribed maximum rate of royalty payable for a mineral not specified in Schedule 1 and sold on or after 1 July 1996 is equivalent to 5% of net sales.

(8)  If the value of the net sales of a mineral not specified in Schedule 1 is less than $100 000 for a year, royalty is to be paid on the ad valorem percentage rate only.

(9)  If the value of the net sales of a mineral not specified in Schedule 1 is at least $100 000 and less than $600 000 for a year, royalty, excluding the ad valorem percentage rate specified in subregulation (5), is to be assessed and paid on an annual basis.

8A.     Rebate on royalty payable

(1)  For the purpose of section 102A(2) of the Act, a rebate on royalty payable is 20% for a metal, other than gold dore, produced in Tasmania from a mineral mined in Tasmania.

(2)  Subregulation (1) does not apply to the primary treatment of a mineral to produce a concentrate for sale or transportation.

(3)  For the purpose of section 102A(2) of the Act, a rebate on royalty payable is 10% for gold dore produced in Tasmania from a mineral mined in Tasmania.

(4)  The Minister, after consultation with the Treasurer, may increase a rebate under subregulation (3) to 20% having regard to the following:

(a) the size of a new investment and additional employment arising from the production of gold dore;

(b) any benefit to the Tasmanian economy from the new investment producing gold dore.