Green light for coal royalty tiers

Progressive coal royalties in Queensland will commence on July 1, 2022, following passage of enabling legislation through Parliament without opposition.

Treasurer Cameron Dick said no member of parliament voted against the move, nor did any party express opposition to the substance of new progressive coal royalty tiers.

He said there were no votes cast against the royalty tiers from members representing the Liberal National Party, Katters Australian Party, One Nation, nor the Greens political party.

“This can be contrasted to the 2019 budget revenue bill, when the LNP voted against higher gas royalties,” he said.

“This demonstrated support for progressive coal royalties from across the political spectrum is good news for coal producers, promising policy stability as these arrangements will not be politicised either now or in an election environment.

“With royalty arrangements now settled with support across the political spectrum, Queensland’s partnership with industry will be renewed through the new Queensland Resources Industry Development Plan.”

Dick said new progressive coal royalties ensure a fair return to the people of Queensland when profits are extraordinary, but will protect coal producers and coal jobs should prices decline.

“We have not jacked up coal royalties on low prices in the middle of a downturn, and we’re pleased all parties have seen the good sense of Labor’s approach,” he said.

“Financial markets also agree, with continued strong investment interest in Queensland resources, including coal.

“Share prices for our coal producers continue to perform strongly, demonstrating our royalty changes are good for Queensland and good for business.”

However, the Queensland Resources Council has been scathing in its condemnation of the royalty, with chief executive officer Ian Macfarlane saying the Queensland Government’s plan for the resources sector was to increase taxes, short-change resources communities and drive away jobs and investment.

“The resources industry is Queensland’s economic backbone, supporting the jobs of more than 422,000 people, and last financial year contributing $84.3 billion to the state economy,” he said.

“This foolish decision to over-tax our sector will lead to projects being cancelled, put on hold or reduced and lead to job losses, particularly in regional areas.

“The resources industry completely opposes the astronomical coal royalty increase announcement and calls on the Government to end its assault on the Queensland resources sector’s future viability, which threatens the viability of regional Queensland.”

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Editor of industrial titles and mastheads with Prime Creative Media. Publications include Rail Express and Australian Mining (web content).
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