Resources Industry Assured by Government that Royalty increase not in State Budget preparations

1 May 2019

Queensland Resources Council has received assurances from the Queensland Government that increases of the rate of coal royalties, which are now at record levels, were not part of the preparations for the 11 June State Budget.

QRC Chief Executive Ian Macfarlane said the industry welcomed Treasurer Jackie Trad’s comments that the Labor Government was “proud to be a resource State here in Queensland,” in response to a question from Katter’s Australian Party (KAP) Member for Hinchinbrook Nick Dametto on coal royalties.

“I understand the Treasurer did not want to disclose Budget details in Parliament, the reality is that the QRC has already sought and received assurances from the Palaszczuk Government that there is no plans to increase royalties,” Mr Macfarlane said.

Queensland coal set an export record last year – every extra tonne we export delivers more dollars for the Treasurer’s budget and predictions are that the Government will receive an extra $1 billion in royalty taxes this year.

Mr Macfarlane said the State Government was on track to receive a record $5.2 billion in royalty taxes from the 316,000 men and women who work in the resources sector. Coal royalties are at record levels with $4.2 billion expected this financial year, compared to $1.6 billion under the last Budget of the previous Government.

“The Treasurer knows that Queenslanders are already seeing a strong return on coal exports and her answer in Parliament also acknowledged the importance of royalty stability to attract and retain investors in developing resources.”

“With the Treasurer’s attack in Parliament today of the previous Government’s decision to increase royalties, it would be totally hypocritical for the Palaszczuk Government to consider an increase.

“It’s important in all Budgets not to kill the goose that lays the golden egg,” Mr Macfarlane said.

Media contact: Anthony Donaghy 0412 450 360