Budget gives some investment signals but risks Queensland’s long-term prosperity

Today the Queensland Resources Council (QRC) welcomes the Treasurer’s Budget for critical mineral and oil development but sees the State Budget as short-sighted when it comes to the long-term prosperity of Queensland.

The 2026-27 State Budget again confirms the importance of the resources sector to the Queensland economy, contributing $6.58 billion in royalties.

The Budget includes welcome commitments of $146 million for critical mineral development, including a $100 million fund managed by Queensland Investment Corporation for critical mineral development and $19 million for a fuel security plan including the New Taroom Trough Development Plan.

These Budget initiatives sit alongside announcements to improve investment hurdles including the review of the Financial Provisioning Scheme, confirmation of $300 million for the Mount Isa smelter and $3.2 billion to progress the CopperString project in Northwest Queensland.

However, industry spending and resource exploration for the future are down. To attract new investment, the government must reform the world’s highest coal royalty rates so Queensland does not miss out.

QRC Chief Executive Officer Janette Hewson said: “This Budget backs part of the resources sector but it ignores the single biggest handbrake to Queensland’s economy – Queensland’s coal royalty regime.

“Higher royalties are not delivering a stronger state – they are reducing investment, hurting regional businesses and workers.

“Queenslanders deserve to benefit from the resources we all own, but the fact is our coal royalties are now helping fund other states as a result of a royalty system that has seen Canberra reduce our share of GST.”

The Queensland Government is forecast to collect $4.799 billion in coal royalties this financial year, growing to nearly $7 billion next year. That’s nearly 7 per cent of the state’s revenue coming from a single resource.

The government has missed another opportunity to reform Queensland’s world highest royalty rates of up to 40 per cent which is far above New South Wales’ top rate of 10.8 per cent.

Ms Hewson said this will worsen impacts for regional communities that have been feeling the impact of a nearly $4 billion reduction in spending by coal companies in the last financial year.

QRC’s budget submission to government called for fairer royalty settings for the sector but also fairer royalties to flow back to the regions who generate royalties for public services.

“The industry continues to call on the government to make the right long-term decision for all of Queensland’s future prosperity.”

Media Contact:

Matt Dunstan – [email protected]