A guide to reporting and expenditure compliance
Background
Resources Victoria, in the Department of Energy, Environment and Climate Action (DEECA, the department) regulates the mineral and quarrying industries in Victoria.
The Mineral Resources (Sustainable Development) Act 1990 (MRSDA, the Act) and the Mineral Resources (Sustainable Development) (Mineral Industries) Regulations 2019 (MRSDMIR, the Regulations) and Mineral Resources (Sustainable Development) (Extractive Industries) Regulations (MRSDEIR) govern the department’s regulation of mineral and extractive sectors in Victoria.
This guide is intended to implement the Act and Regulations to demonstrate what is expected from Licensees and Authority Holders in relation to legislative requirements for reporting and expenditure.
Licensees and authority holders have a responsibility to always comply with these requirements. The department regularly monitors tenements to ensure they are meeting a satisfactory standard. Failure to comply can, in some instances, result in enforcement action, such as infringement notices, prosecution or the tenement being cancelled.
The submission of statutory returns improves the quality of data collected and enhances the usability of information on the activities and level of work including rehabilitation and safety. The department uses the information as a basis for establishing whether a tenement holder is fulfilling their obligations.
Compliance with Section 15(6) of the Act
Section 15(6) of the MRSDA provides that an applicant for a licence must satisfy the Minister that the applicant:
- is a fit and proper person to hold the licence; and
- intends to comply with this Act; and
- genuinely intends to do work; and
- has an appropriate program of work; and
- is likely to be able to finance the proposed work and rehabilitation of the land.
Otherwise, a licence cannot be granted. Similarly, a renewal application cannot be granted unless the applicant satisfies the Minister as to the matters specified in Section 15(6). Further, the holder of a granted licence may have the licence cancelled if the Minister is not satisfied that the licensee continues to meet section 15(6) of the MRSDA.
Any non-compliance may affect your ability to satisfy future eligibility to be granted licences under the MRSDA.
Annual requirements for mineral licences
Expenditure and activity returns
An expenditure and activities return must be submitted within 28 days after the annual reporting date of the licence. One expenditure and activity return per licence must be submitted.
The reporting date varies for the different licence types.
- Exploration and retention licences can have a reporting date of either 31 March, 30 June, 30 September or 31 December. The reporting date is specified on the licence document.
- All mining and prospecting licences have an annual reporting date of 30 June.
The annual expenditure requirement is stated on the licence instrument and is applicable from the grant of the licence.
In the case where a licence is granted following a tender (Section 27 of the MRSDA) or following a competing application process (Section 23 of the MRSDA), the expenditure proposed on the submitted application will be used as the licence expenditure requirement.
The minimum annual expenditures are listed in the tables below for exploration and mining licences that were not subject to a tender of competing application. Retention licences do not have a minimum expenditure, however, the proposed program of work must include Milestone activities and associated expenditure that form a key part of the licence conditions.
| Year of the licence | Metallic* minerals $ per km2 or $ per GDA94 graticular section | Non-metallic** minerals $ per km2 or $ per GDA94 graticular section | Fixed expenditure |
|---|---|---|---|
| 1 | $150 | $75 | $15,000 |
| 2 | $200 | $120 | $15,000 |
| 3 | $200 | $120 | $15,000 |
| 4 | $200 | $120 | $15,000 |
| 5 | $300 | $150 | $15,000 |
| 6 - 10 | $500 | $250 | $15,000 |
| 11+ | $1,000 | $500 | $15,000 |
| Area of a licence | Metallic* minerals | Non-metallic** minerals | Underground metallic mineral operation |
|---|---|---|---|
| 5 hectares or less | $15,000 | $5,000 | $14,000 |
| Greater than 5 hectares and less than 10 hectares | $20,000 | $10,000 plus $200 per hectare | $19,000 |
| Greater than 10 hectares and less than 25 hectares | $23,000 | $10,000 plus $200 per hectare | $22,000 |
| Greater than 25 hectares | $900 | $10,000 plus $200 per hectare | $850 per hectare |
| Area of a licence | Fixed expenditure | $ per hectare |
|---|---|---|
| 5 hectares or less | $15,000 | - |
| Greater than 5 hectares and up to 260 hectares | $15,000 | $100 |
| Greater than 260 hectares | $20,000 | $150 |
| Area of a licence | Fixed expenditure | $ per hectare |
|---|---|---|
| 5 hectares or less | $15,000 | $5,000 |
Technical report
All exploration and retention licences are required to submit an Annual Technical Report within 28 days after the reporting date for each year.
All mining licences (excluding those granted prior to 1 Feb 2012 that cover 5ha or less) are required to submit an Annual Technical Report where exploration expenditure, including Office Studies is reported.
Prospecting licences are not required to submit Annual Technical Reports.
Download the Guide for Exploration, Retention and Mining Licence Holders for Reporting on Exploration Activities below for a more detailed explanation on how to prepare your technical report and all the requirements.
Maintaining expenditure records
Holders of a licence under the Act must report the details of expenditures made on the licence in annual statutory returns.
The purpose of the annual statutory returns is to provide a record of the amount that the licence has expended on the operation. From this information the department can assess whether the annual expenditure commitment is being met.
The department monitors the results of these returns and will closely examine licences that are not meeting their expenditure requirement.
The department may also examine licences that are reporting satisfactory expenditure. This may be undertaken where it appears that the reported expenditure is substantially higher than what would normally be spent for that type of operation, or where the reported expenditure does not appear to be reflected in the actual on-site work.
In cases where a licence has been audited and there is doubt as to the accuracy of the reported expenditure, the department may request that the licensee provide documentation to substantiate the expenditure being reported. Substantiation may include:
- Wages and salaries: group certificates/number of hours worked where claiming own labour
- Equipment plant and machinery: receipts for purchase of equipment, hiring costs, maintenance, contractors
- Administration and consumables: receipts for payment of rent, purchase of consumables
- Rehabilitation: receipts for purchase of seedlings or plants, etc.
- Exploration: receipts for contractors that have conducted exploration activities, analysis work, testing, etc.
All licensees should keep a record of the exploration and mining activities undertaken under the licence, for the purpose of verifying the claims made, in case an audit is required (Regulation 52). Failure to verify expenditure claims may result in the department's records being adjusted to reduce the claimed amount.
What can be claimed?
Claimable expenditure is the cost of mining or exploration work that directly relates to a licence. Licence holders must understand which costs they can claim. They need to record each cost against the correct exploration or mining activity.
Licence holders must attribute costs to the activity that incurred them. This ensures the total cost of that activity is accurately reported. Claimable costs include wages and salaries, plant and equipment, and administration and consumables.
- For example, claim personnel salaries, drill rig hire and sample bags used in a drilling campaign under drilling and related activities.
Licence holders must support all claims with appropriate documentation, such as receipts and invoices.
The information below explain how to categorise expenses.
General expenses
Salaries and wages
- Allocate salaries and wages for employees or contractors to the type of work performed, e.g. office-based, administration or onsite activities.
- If employees or contractors work across multiple licences, split the cost fairly to clearly reflect the work done under each licence.
Plant and equipment
- Claim the cost of equipment, plant or machinery when you cannot link it to a specific activity. This includes purchase and hire costs.
- If you use equipment across multiple licences, split the cost proportionately to clearly reflect the work done under each licence.
- Claim equipment purchase costs in the year you buy them. You cannot claim depreciation.
Administration and consumables
- These support onsite operations, including goods necessary for fieldwork or project delivery that cannot be attributed to a specific activity e.g. drilling
- Community engagement activities including those with:
- the local community
- Traditional Owners
- local landowners regarding land access agreements.
- Payments related to compensation agreements with local landowners, Land Use Activity Agreements and Native Title agreements
- Occupational health and safety (OH&S) activities
- General expenses that cannot be attributed to a specific activity of the licence
Exploration expenses
All expenses should be related to exploration activities on the licence.
Office-based activities
Expenses under this classification include:
- Literature reviews and general research activities
- Data reviews, compilations and reprocessing
- Computer modelling (2D and 3D geological and/or geophysical data modelling)
- Geological and geophysical interpretations
- Resource and reserve estimations
- Assessments and reports, including those for work plans, such as:
- Aboriginal heritage surveys
- flora and fauna surveys
- water studies
- radiation studies.
- Reporting expenses (e.g. preparation of annual reports)
Airborne surveys and remote sensing
Expenses under this classification include:
- Airborne aeromagnetic, radiometric, electromagnetic, gravity, DTM, LiDAR
- Aerial photography, satellite imagery and multi spectral scanning
On-ground activities
Expenses under this classification include:
- Field reconnaissance and geological mapping
- On-ground geophysical surveys
- Surface sampling and analysis (e.g. geochemistry, mineralogical and petrology)
Sub-surface activities
Expenses under this classification include:
- Purchase or hire of drilling equipment
- Drilling activities and related consumables
- Assaying and other laboratory analysis (e.g. geochemistry, mineralogical and petrology)
- Costeaning/ditch witching
- Bulk sampling
- Shaft or underground development or restoration
- Subsurface geophysical surveys
- Onsite facilities directly related to exploration activities
Technical and economic studies (retention licences only)
Expenses under this classification include:
- Economic viability assessments
- Technical and economic studies
- Environmental effects statement (EES), including self-referral and any associated fees for completing an EES
Note: Claim resource and reserve estimations under office-based activities.
Rehabilitation
Expenses under this classification include
- Plugging of drill holes and backfilling of excavated areas
- Track maintenance and rehabilitation
- General landscaping of the disturbed area
- Waste disposal fees for removal of material, including infrastructure used onsite
- Monitoring of completed rehabilitation
Not claimable
General costs associated with running the business cannot be claimed, including:
- Accountancy fees and income tax expenses
- Banking fees and charges, including merchant fees
- Insurance (e.g. Workcover)
- Legal fees and filing fees (e.g. ASIC)
- Employee superannuation payments
- Salaries for directors, office bearers and general office personnel
- Company advertising
- Sponsorship or donations to third parties (e.g. local community groups)
Other costs related to the licence but not to undertaking work, including:
- Rehabilitation bonds
- Annual licence rent
- Fees for licence variations (e.g. renewals, transfers, etc.)
General expenses
All expenses should be related to mining activities.
Wages and salaries
Expenses under this classification include:
- Wages and salaries related to mining activities
Office-based activities
Expenses under this classification include:
- Literature and data reviews
- Geological and geophysical interpretations
- Computer modelling
- Resource and reserve estimations
- Stakeholder engagement plans and community engagement activities including those with:
- the local community
- Traditional Owners
- local landowners (regarding land access agreements). This includes any related fees for carrying out these activities.
- Payments related to compensation agreements with local landowners, Land Use Activity Agreements and Native Title agreements
- Occupational health and safety (OH&S) activities
- Reporting expenses (e.g. preparation of annual reports)
- General expenses that cannot be attributed to a specific activity on the licence
Exploration expenses
All expenses should be related to exploration activities on the licence.
Exploration work (as distinct from mining)
Expenses under this classification include:
- Office-based exploration activities, including but not limited to:
- literature and data reviews
- geological and geophysical interpretations
- computer modelling
- resource and reserve estimations.
- Assessments and reports related to permitting and undertaking exploration activity, including those for work plans, such as:
- Aboriginal heritage surveys
- flora and fauna surveys
- water studies
- radiation studies.
- Occupational health and safety (OH&S) activities
- Airborne surveys and remote sensing activities
- On-ground activities, including:
- geophysical surveys
- geological mapping
- surface sampling and related analysis.
- Sub-surface activities, including:
- drilling
- sampling and assaying
- costeaning and bulk sampling
- underground development for exploration, e.g. drill cuddies.
Mining expenses
All expenses should be related to mining activities.
Mining work
Expenses under this classification include:
- Assessments and reports required to permit mining activity, including those for work plans and statements of economic significance, such as:
- Aboriginal heritage surveys
- flora and fauna surveys
- water studies
- radiation studies.
- Expenses related to undertaking mining activities, including
- production
- processing or treatment costs.
Rehabilitation
Expenses under this classification include:
- Stabilising slopes and backfilling pits or excavated areas
- Landscaping the disturbed area
- Reseeding
- Track maintenance and rehabilitation
- Waste disposal fees for removal of material, including infrastructure used onsite
- Monitoring of rehabilitation
Not claimable
General costs associated with running the business cannot be claimed, including:
- Accountancy fees and income tax expenses
- Banking fees and charges, including merchant fees
- Insurance (e.g. Workcover)
- Legal fees and filing fees (e.g. ASIC)
- Employee superannuation payments
- Salaries for directors, office bearers and general office personnel
- Company advertising
- Sponsorship or donations to third parties (e.g. local community groups)
Other costs related to the licence but not to undertaking work, including:
- Rehabilitation bonds
- Annual licence rent
- Fees for licence variations (e.g. renewals, transfers, etc.)
General expenses
All expenses should be related to mining activities.
Wages and salaries
Expenses under this classification include:
- Wages and salaries for employees or contractors
Plant and equipment
- Claim the cost of equipment, plant or machinery when you cannot link it to a specific activity. This includes purchase and hire costs.
- If you use equipment across multiple licences, split the cost proportionately to clearly reflect the work done under each licence.
- Claim equipment purchase costs in the year you buy them. You cannot claim depreciation.
Administration and consumables
Expenses under this classification include:
- Administrative costs incurred while carrying out mining activities
- Costs to purchase consumables used in mining activities
- Stakeholder engagement plans and community engagement activities, including those with:
- the local community
- Traditional Owners, and local landowners regarding land access agreements. This includes any related fees for carrying out these activities.
- Payments related to compensation agreements with local landowners, Land Use Activity Agreements and Native Title agreements
- General costs that cannot be attributed to a specific activity on the licence
Mining expenses
All expenses should be related to mining activities.
Mining work
Expenses under this classification include:
- Assessments and reports required to permit mining activity, including those for work plans and statements of economic significance, such as
- Aboriginal heritage surveys
- flora and fauna surveys
- water studies
- radiation studies.
- Expenses related to undertaking mining activities, including:
- production
- processing or treatment costs.
Rehabilitation
Expenses under this classification include:
- Stabilising slopes and backfilling pits or excavated areas
- General landscaping of disturbed areas
- Reseeding
- Track maintenance and rehabilitation
- Waste disposal fees for removal of material, including infrastructure used onsite
- Monitoring of rehabilitation
Exploration expenses
All expenses should be related to exploration activities on the licence.
Exploration work (as distinct from mining)
Expenses under this classification include:
- Office-based exploration activities, including but not limited to:
- literature and data reviews
- geological and geophysical interpretations
- computer modelling
- resource and reserve estimations.
- Assessments and reports related to permitting and undertaking exploration activity, including those for work plans, such as:
- Aboriginal heritage surveys
- flora and fauna surveys
- water studies
- radiation studies.
- Occupational health and safety (OH&S) activities
- Airborne surveys and remote sensing activities
- On-ground activities, including:
- geophysical surveys
- geological mapping,
- surface sampling and related analysis.
- Sub-surface activities, including:
- drilling
- sampling and assaying
- costeaning and bulk sampling
- underground development for exploration, e.g. drill cuddies.
Not claimable
General costs associated with running the business cannot be claimed, including:
- Accountancy fees and income tax expenses
- Banking fees and charges, including merchant fees
- Insurances (e.g. Workcover)
- Legal fees and filing fees (e.g. ASIC)
- Employee superannuation payments
- Salaries for directors, office bearers and general office personnel
- Company advertising
- Sponsorship or donations to third parties (e.g. local community groups)
Other costs related to the licence but not to undertaking work, including:
- Rehabilitation bonds
- Annual licence rent
- Fees for licence variations (e.g. renewals, transfers, etc.)
If you have questions about claimable items, please email returns.err@deeca.vic.gov.au.
Combine conditions (Section 35)
Two or more licences of the same type, held by the same person may be treated as a single licence over the combined areas for the purpose of determining whether the expenditure conditions have been met. It is preferred that the areas being combined adjoin but is not necessary.
Combining conditions can be initiated by the licensee or by the Minister, after consultation with the licensee.
Royalty report
All mining and prospecting licence holders must submit a Production and Royalty Return by 30 July annually.
Production figures stated in the Production and Royalty Return, should match the production figures in the activities and expenditure return. Information provided from licensee returns is used to monitor compliance obligations, including expenditure and the status of the site.
| Mineral | Royalty |
|---|---|
| Lignite (brown coal) | The determined amount per gigajoule unit of coal produced |
| Tailings from Crown land disposed under section 14(2)(b) of the Act | $1.43 per cubic metre |
| All minerals (excluding gold) | 2.75% of the net market value |
| Gold | 2.75% of the net market value for production over 2,500 ounces. |
Rent
The holder of a mineral licence is required to pay rent annually for the land covered by the licence as at 30 June. Rent is payable by 28 July annually.
Failure to pay rent may result in licence cancellation processes being implemented.
Work Authorities
Annual Reports
All work authority holders are required to complete an Annual Report within the RRAM portal by 31 July each year. The annual report must advise of production and sales during the period 1 July to 30 June. Even if no production or sales has taken place during the reporting period, a report must still be completed.
Failure to submit an Annual Report by the due date may result in an infringement notice being issued and/or further action under S110 of the MRSDA.
Failure to submit an Annual Report by the due date may result in an infringement notice being issued and/or further action under S110 of the MRSDA.
Royalty Return
A Royalty Return is a separate return to an Annual Report.
A Royalty Return is required to be completed via RRAM when a Work Authority includes Crown land. Crown land includes road and road reserves, Crown land parcels, and where the private land has a depth limit (usually 15.24m).
If no extraction has occurred from the Crown land you must still complete a royalty return in RRAM.
For the purpose of paying royalty, it is a requirement to report the quantities in the loose measurement of material in either tonnes or m3.
The holder of an extractive industry work authority must retain copies of records of sales and extractions for 6 years as stated in Regulation 27(1) of the Mineral Resources (Sustainable Development)(Extractive Industries) Regulations 2019.
| Type of stone | Rate per cubic metre | Rate per tonne |
|---|---|---|
| All stone (except dimension stone and marble) | $1.43 | $0.87 |
| Dimension stone and marble | $8.07 | $3.23 |
Reports
The Mineral Resources (Sustainable Development) (Extractive Industries) Regulations 2019 also prescribes for submission of the following reports where applicable:
- Regulation 20: Information relating to reportable events at quarries, required as soon as practicable after the event has occurred.
- Regulation 22: Report relating to declared quarries. This is required for an extractive industry work authority that relates to a declared quarry. The report covers matters described in Regulation 22 and should be submitted for each period of six months ending on 30 June or 31 December (or other dates as nominated by the Minister).
Please note
The expenditure and royalty rates contained within this guide were correct at the time of posting. Rates may change from time to time, please contact Resources Victoria to check the current rates.
Page last updated: 16 Apr 2026