On 6 January 2012, the ABC reported that "the New South Wales Government is currently reviewing the royalty holiday for coal seam gas developments."
 
It was further reported that the NSW Government has not released a timeframe for when a decision would be made.
As of 17 January 2012, all onshore petroleum developments in NSW, including coal seam gas developments, enjoy a five year royalty holiday. After this time, royalties are imposed at an initial rate of 6% per annum, rising by 1% every year until reaching the top rate of 10% per annum.
"Petroleum" resources include oil and conventional gas, along with unconventional petroleum resources such as coal seam gas (CSG), tight gas and shale oil. CSG in Australia is regulated by the relevant State or Territory petroleum regulatory regime.
After a summary of the CSG industry in NSW, this e-brief compares petroleum royalty rates in all Australian States and Territories. The e-brief finishes with commentary from the Henry Tax Review on the use of royalties as a form of resource taxation.
Image: Jeremy Buckingham MLC / flickr