Gas and petroleum licensing by state — permits, royalties and approvals compared
Onshore petroleum and gas exploration in Australia is state-licensed under separate Acts. Compare regulators, exploration permit terms, production lease terms, royalty rates and environmental approvals across NSW, VIC, QLD, WA, SA and NT.
Onshore petroleum and gas exploration and production in Australia is regulated state by state, with separate statutes setting permit terms, royalty rates, environmental approval pathways and native-title future-act treatment. The Commonwealth's offshore regime (the Offshore Petroleum and Greenhouse Gas Storage Act 2006 administered by NOPSEMA and NOPTA) sits outside this comparison — these cells cover onshore.
Queensland and Western Australia run the deepest onshore oil and gas industries — Queensland's coal seam gas/LNG sector under the Petroleum and Gas (Production and Safety) Act 2004, and WA's onshore conventional gas and shale interest under the Petroleum and Geothermal Energy Resources Act 1967. South Australia's Cooper Basin operations sit under the Petroleum and Geothermal Energy Act 2000. NT, NSW and Vic have smaller but active regimes. Tasmania and the ACT have no current onshore petroleum production framework, and Victoria has banned onshore unconventional gas — flagged in the matrix.
Royalty rates and the methodology (ad valorem vs profit-based) vary materially. Most states use an ad valorem royalty on wellhead value at single-digit percentages, while QLD and WA have moved to value-based royalty regimes for petroleum. Native-title future-act compliance under the Native Title Act 1993 (Cth) overlays every state regime — explorers must comply with right-to-negotiate or alternative state procedures where native title may exist.
For the full plain-English explainer, see our companion guide: Gas and petroleum licensing by state.
Comparison matrix
Click any column header to sort.
Governing Act | Petroleum (Onshore) Act 1991 (NSW) NSW Legislation | Petroleum Act 1998 (Vic) + Gas Industry Act 2001 (Vic) Vic Legislation | Petroleum and Gas (Production and Safety) Act 2004 (Qld) Qld Legislation | Petroleum and Geothermal Energy Resources Act 1967 (WA) WA Legislation | Petroleum and Geothermal Energy Act 2000 (SA) SA Legislation | No current onshore petroleum production framework — fracking moratorium in place MRT | No petroleum/gas exploration framework (ACT not a producing jurisdiction) ACT Environment | Petroleum Act 1984 (NT) NT Legislation |
|---|---|---|---|---|---|---|---|---|
Regulator | NSW Resources (Department of Regional NSW) NSW Resources | Earth Resources Regulation (DEECA) ERR Vic | Department of Resources (Queensland) Qld Resources | Department of Energy, Mines, Industry Regulation and Safety (DEMIRS) DEMIRS | Department for Energy and Mining SA DEM SA | Mineral Resources Tasmania MRT | — ACT Environment | Department of Mining and Energy (NT) NT DME |
Exploration permit term Initial term of a petroleum exploration permit. Most jurisdictions allow renewals subject to relinquishment. | Up to 6 years (renewable) NSW Resources | Up to 5 years (renewable) ERR Vic | Authority to prospect up to 12 years Qld Resources | Up to 5 years (renewable) DEMIRS | Up to 5 years (renewable) DEM SA | — MRT | — ACT Environment | Up to 6 years (renewable) NT DME |
Production lease term Standard term of a petroleum production lease/licence. | Up to 21 years (renewable) NSW Resources | Up to 21 years (renewable) ERR Vic | Up to 30 years (renewable) Qld Resources | Up to 21 years (renewable) DEMIRS | Up to 21 years (renewable) DEM SA | — MRT | — ACT Environment | Up to 25 years (renewable) NT DME |
Royalty rate (headline) Petroleum royalty rates. Verify the current rate and methodology with the cited regulator. | 10% ad valorem of wellhead value — verify with NSW Resources NSW Resources | 10% ad valorem of wellhead value — verify with ERR Vic ERR Vic | Value-based 10-12.5% petroleum royalty — verify with QRO/Qld Resources QRO | 10% wellhead value (onshore conventional) — verify with DEMIRS DEMIRS | 10% ad valorem (Cooper Basin) — verify with DEM SA DEM SA | — MRT | — ACT Environment | Profit-based royalty regime — verify with NT DME/Treasury NT DME |
Native title future-act regime | Right-to-negotiate applies (no alternative state regime) NNTT | Right-to-negotiate applies NNTT | Right-to-negotiate or Qld alternative state procedure (Native Title Determinations Act) Qld Resources | Right-to-negotiate; WA alternative procedure for some titles DEMIRS | SA alternative state procedure or right-to-negotiate DEM SA | — MRT | — ACT Environment | Right-to-negotiate applies NT DME |
Environmental approvals overlay State environmental approvals required in addition to the petroleum licence. | EP&A Act SSD/SSI approval + POEO licence + Aboriginal heritage approvals NSW Resources | EE Act 1978 + EP Act 2017 + onshore unconventional gas banned (Constitution Act amendment) ERR Vic | EP Act 1994 environmental authority + State Development Act co-ordinated project Qld Environment | EP Act 1986 Pt IV referral + Aboriginal Cultural Heritage Act overlay EPA WA | Environmental Impact Report under PGE Act + statement of environmental objectives DEM SA | Onshore hydraulic fracturing moratorium in place since 2014 MRT | — ACT Environment | EP Act 2019 + Aboriginal Land Rights Act + Beetaloo-specific approvals NT EPA |
Hydraulic fracturing status (2026) | Permitted with conditions (subject to gas moratoria past); BSOA review continues NSW Resources | Onshore unconventional fracking permanently banned (s 8AB Petroleum Act) ERR Vic | Permitted with conditions (CSG-dominant industry) Qld Environment | Permitted in defined areas; banned in metropolitan/agricultural regions DEMIRS | Permitted; 10-year moratorium in south-east SA DEM SA | Moratorium in place since 2014 (extended) MRT | — ACT Environment | Permitted (post-Pepper Inquiry framework, Beetaloo Basin) NT DME |
Every cell links to the cited source. Rules Mate links and summarises — it does not reproduce statutory text. Confirm with the cited regulator before relying on any cell.
Frequently asked
Why is the ACT not included in this comparison?
The ACT has no petroleum or gas exploration framework — there is no commercial onshore petroleum industry in the Territory and no licensing regime under ACT legislation. Production decisions for the Territory rely on supply from NSW and Victoria.
Has Victoria really banned onshore fracking?
Yes. The Petroleum Legislation Amendment Act 2020 entrenched a permanent prohibition on onshore unconventional gas exploration and production in Victoria, including hydraulic fracturing and coal seam gas activities, with the ban included in section 8AB of the Petroleum Act 1998 and protected by a Constitution Act amendment.
Is offshore petroleum included here?
No. Offshore petroleum production (outside state waters) is regulated under the Commonwealth Offshore Petroleum and Greenhouse Gas Storage Act 2006, administered by NOPSEMA and NOPTA. This matrix only covers onshore state and territory regimes.
Which state has the longest petroleum production lease term?
Queensland leads with up to 30-year petroleum leases under the Petroleum and Gas (Production and Safety) Act 2004. NT runs 25-year leases. NSW, Vic, WA and SA all sit at 21 years (renewable). All jurisdictions offer renewal subject to compliance and continued commercial viability.
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