Queensland’s coal royalties reached a record breaking contribution of $3.8 billion for 2017-18 to the State Budget, up from a previous record of $3.4 billion in 2016-17.
The boost in royalties will pay for the Palaszczuk government’s infrastructure and vital services such as health and education.
Along with the increased contribution from minerals and LNG, the overall resources sector experienced a hike in royalties which amounted to $4.3 billion this financial year. With a boost expected from petroleum and minerals, the Budget forecasted further climb in total royalties next financial year up to a total of $4.5 billion.
These exceeded the State Budget’s projection of coal and total royalties of $2.4 billion and $3 billion, respectively.
Queensland Resources Council chief executive Ian Macfarlane said the increased projections were due to the strong international demand for metallurgical coal and the stable prices for both metallurgical and thermal coal from Queensland.
Macfarlane said, “I thank the Treasurer for her commitment to not change royalty rates in this Budget and call on Ms Trad for an ongoing commitment to royalty stability.”
“Every Queenslander – regardless of where they call home – shares in the wealth of the sector through royalties paid to the Government. These royalties go to schools, hospitals and roads in the south-east of Queensland.
“The 280,000 men and women working in the resources sector are delivering for five million Queenslanders.”
Coal royalties were projected to contribute $3.5 billion to the Budget in 2018-19.