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Five-year freeze on royalty rates for construction, industrial minerals in WA


Building materials producers in Western Australia will be given fixed royalty rates for the next five years which will support the industry as it recovers from COVID-19.

The decision was announced by Western Australia’s Mines and Petroleum Minister Bill Johnston, who said royalty rates will stay where they are today for the next five years, starting from 1 July, 2020.

“The decision not to increase the specific royalty rate follows the McGowan Government’s $24.5 million package to help the building and construction industry maintain a skilled workforce and support apprentices and trainees,” Johnston said.

“Producers of basic raw materials play an important role in Western Australia’s growth as they allow new homes to be built and new roads and railways to be constructed. Leaving the rate royalty at current levels reflects our commitment to helping our economy recover post-COVID-19.”

Despite remaining operational, the construction industry saw record lows in April’s Australian Performance of Construction Index, which have in turn resulted in an economic shrinkage across the supply chain.

It is hoped the freezing of increased royalty rates will support the industry over the coming years.

The current rate royalties are separated into Amount A (73 cents) and Amount B (117 cents).

Materials such as aggregate, clays, dolomite, gravel, gypsum, construction use limestone, rock and salt, and sand are included in Amount A. Building stone, chemical use limestone, metallurgical use silica and talc are specified under Amount B.

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