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ARTICLE · 06 SEPTEMBER 2017

New South Wales Introduces Coal Mine Subsidence Compensation Scheme

Jones Day
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New South Wales is one of Australia's states with extensive underground coal mining operations.

AustraliaEnergy and Natural Resources
Tony Wassaf
Tony Wassaf
James Parker
James Parker
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In Short

The Situation: New South Wales is one of Australia's states with extensive underground coal mining operations. Recently, the NSW Department of Finance Services and Innovation undertook a review of the 1961 Mine Subsidence Compensation Act and concluded that it needed to be replaced.

The Result: NSW introduced a new coal mine subsidence compensation scheme that makes coal miners directly liable for damage arising from subsidence from their underground coal mines. They will still pay a reduced levy to fund subsidence damage from inactive mines.

Looking Ahead: The new scheme is expected to take effect from 2018. Underground coal miners should consider whether they need to make provisions in their financial statements for this new direct liability for subsidence damage.

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