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Legislative Update: Mining Amendment (Transfer of Royalty Administration) Bill 2025
By Riaan Piek, Managing Associate.
Introduction
The Western Australian Government is in the process of stepping up enacting important legislative reform through the Mining Amendment (Transfer of Royalty Administration) Bill 2025 (the Bill).
The Bill is currently progressing through Parliament and proposes to amend not only the Mining Act 1978 and the Taxation Administration Act 2003 by transferring the administration of mining royalties from the Department of Energy, Mines, Industry Regulation and Safety (DMIRS) to the Department of Finance’s Revenue WA.
While largely administrative on its face, the change has potential ripple effects across the civil construction sector, particularly for contractors engaged in mining and infrastructure projects.
Royalty Collection and Purpose of the Bill
In Western Australia, mineral royalties are administered under the Mining Act 1978, the Mining Regulations 1981, and around 30 state agreement acts.
This framework involves royalty administration and collection functions being undertaken by the Minister for Mines and Petroleum and public service officers at DMIRS.
The Bill seeks to modernise and streamline the management of royalty revenue by altering the machinery-of-government by transferring administration of the Mining Act as it relates to royalty administration and collection functions from the Minister for Mines and Petroleum to the Minister for Finance.
Most notably:
- the Department of Finance will assume full responsibility for royalty assessments, audits, and collections (i.e. for royalty matters);
- DMIRS will retain its technical and operational regulatory functions, including approvals and compliance (i.e. for mining operations and titles); and
- transitional provisions will apply to ensure continuity of existing royalty agreements and records.
The WA Government has justified this reform on the basis of improving fiscal oversight, inter-agency coordination, and ensuring consistency with other revenue collection processes.
Implications for Civil Contractors
While the Bill does not directly target the civil construction industry, its effects may be felt in several ways:
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- Contractual Adjustments: Contractors with agreements linked to mining royalties (e.g. those engaged in mine site infrastructure or royalty-linked incentive arrangements) may need to review existing contract clauses, particularly around payment triggers and compliance responsibilities.
- Project Finance and Risk: The Department of Finance’s tighter oversight of royalties may influence how mining proponents assess project viability and structure their finances which could, in turn, affect project timelines and capital allocation for associated works.
- Regulatory Interactions: Civil contractors interacting with DMIRS on site approvals, land disturbance, or environmental compliance may see a clearer delineation of responsibilities post-transition. This could improve processing efficiency but also introduce new layers of reporting or audit risk under the Department of Finance if irregularities occur when accounting for mineral royalties.
- Audit and Compliance Scrutiny: If the Department of Finance imposes stricter financial controls, contractors may be required to provide more supporting and detailed documentation or participate in audits where their work influences royalty calculations (e.g. in ore haulage or site development).
Looking ahead and Industry Outlook
The Bill is expected to have minimal disruption during its implementation phase, with transitional arrangements in place to ensure continuity.
Civil contractors may wish to monitor this development closely. Proactive contract review, internal audit preparedness, and ongoing dialogue with mining clients will be key strategies in adapting to the new royalty administration framework.
As Western Australia continues to refine its resource governance, the Bill represents a step toward a more streamlined and modern regulatory environment, one that could ultimately benefit all stakeholders in the mining and construction value chain.
Conclusion
Although administrative in scope, the Mining Amendment (Transfer of Royalty Administration) Bill 2025 signals a shift in how government departments interface with industry on financial matters. For WA’s civil contractors, particularly those embedded in the mining value chain, understanding the implications of this reform will help ensure continued commercial certainty and regulatory compliance.
*This information serves as a general guide and does not constitute legal advice. It is based on our research and experience at the time of publication. Please consult our knowledgeable legal team for any specific inquiries or advice relevant to your circumstances, as the content may not have been updated subsequently.