Rental
56M Rental
This section applies in relation to—
a mining lease; and
a retention lease; and
a miscellaneous purposes licence.
A mineral tenement to which this section applies must provide for the payment, by way of rental, of such sum as may be prescribed by the regulations (and different sums may be prescribed according to different classes of tenement).
Subject to this section, the amount by way of rental is payable to the Minister.
Subject to this section, if a mineral tenement to which this section applies is granted over land consisting of, or including, land subject to an estate in fee simple (with the interest of any registered proprietor of such an estate being referred to as a relevant interest) then, except to the extent that subsection (5) applies, the amount paid to the
Minister under this section in relation to the tenement must, after deduction of 5% (with the net amount remaining after the 5% deduction being referred to as the net amount available for distribution) be dealt with in accordance with the following principles:
the proportionate entitlement of each holder of a relevant interest in the land must be worked out by determining what proportion of the total area of the land subject to the tenement is represented by land in relation to which a relevant interest exists (with an appropriate allocation between entitlements if there is more than 1 registered proprietor in relation to any particular piece of land);
a proportion of the net amount available for distribution, equivalent to the registered proprietor's proportionate entitlement, must be paid to each holder of a relevant interest in land subject to the tenement;
if a balance remains after distribution under paragraph (b), the balance is to be retained by the
Minister.
Despite subsection (4), if a tenement holder or any related body corporate is also a registered proprietor of an estate in fee simple of land, the scheme under subsection (4) will not apply in relation to the holder.
Subject to this section, if a mineral tenement to which this section applies is granted over land consisting of, or including, land subject to native title conferring a right to exclusive possession of the land (with the interest of any holder of such native title being referred to as a
relevant interest) then the amount paid to the Minister under this section in relation to the tenement must, after deduction of 5% (with the net amount remaining after the 5% deduction being referred to as the
net amount available for distribution) be dealt with in accordance with the following principles:
the proportionate entitlement of each holder of a relevant interest in the land must be worked out by determining what proportion of the total area of the land subject to the tenement is represented by land in relation to which a relevant interest exists (with an appropriate allocation between entitlements if there is more than 1 holder of native title in relation to any particular piece of land);
a proportion of the net amount available for distribution, equivalent to each person's proportionate entitlement, must be paid to each holder of a relevant interest in land subject to the tenement;
if a balance remains after distribution under paragraph (b), the balance is to be retained by the
Minister.
In addition, if—
the Minister retains an amount paid by way of rental in relation to any land that is not subject to the operation of subsection (4) or
; and
a valid claim for native title conferring a right to exclusive possession is subsequently made in relation to the land, then any such amount that is attributable to rental paid to the
Minister in relation to the prescribed period is, after deduction of 5%, payable to the person or persons to whom native title is granted (and if there is more than 1 such person then their respective shares will be determined by applying the principles set out in subsection (6)).
For the purposes of subsection (7), the prescribed period is the period of 5 years immediately preceding the registration of native title under the law of the State or the Commonwealth (as the case may be).
Subsections (4) to
do not apply in relation to land owned by—
a Minister; or
the Commissioner for Highways; or
any other agency or instrumentality of the Crown prescribed by the regulations.
Subsections (4) to (8) do not apply if application for the mineral tenement to which this section applies was made on or after
1 July 2025.
For the purposes of subsection (4), if a relevant interest in a parcel of land over which a mineral tenement is granted has been transferred (other than by reason of the registered proprietor being deceased or where the Minster is satisfied that a familial relationship exists between the transferor and transferee) on or after 1 July 2026, the net amount available for distribution under that subsection in respect of that parcel of land will be taken to be 50% of the amount remaining after deduction of 5% of the amount payable to the Minister.
For the purposes of subsection (9b), a familial relationship exists between a transferor and a transferee if—
the transferor is an individual, or a trustee for an individual, and the transferee is a relative of, or a trustee for a relative of, that individual; or
the transferor is an individual, or a trustee for an individual, and the transferee is a family company the shareholders of which are relatives of that individual; or
the transferor is a family company and the transferee is a relative of the shareholders of the company, or a trustee for a relative of the shareholders of the company; or
the transferor and the transferee are family companies and the shareholders of the transferor are relatives of the shareholders of the transferee; or
the Minister determines, after considering information provided by the transferor or transferee, that a familial relationship exists between them.
For the purposes of this section, the Minister may, by written notice, require—
that a person provide such information or evidence as the Minister may require for the purposes of considering whether a familial relationship exists; and
that the information or evidence be given on oath or verified by statutory declaration.
An amount paid to the holder of a relevant interest in land under this section will not be taken to be compensation for the purposes of any other section.
In this section—
domestic partner means a person who is a domestic partner within the meaning of the Family Relationships Act 1975, whether declared as such under that Act or not;
family company—a company is a family company if each shareholder of the company is a relative of all other shareholders of the company;
relative, in relation to an individual, means a person who is—
a child or remoter lineal descendant of the individual or of the spouse or domestic partner of the individual; or
a parent or remoter lineal ancestor of the individual or of the spouse or domestic partner of the individual; or
a brother or sister of the individual or of the spouse or domestic partner of the individual; or
a child or remoter lineal descendant of the brother or sister of the individual or of the spouse or domestic partner of the individual;
or
the spouse or domestic partner of the individual or a spouse or domestic partner of any person referred to in paragraph (a), (b) or (c);
spouse—a person is the spouse of another if they are legally married.
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