Charges and Taxes

The Queensland resources sector makes a substantial contribution of taxes and charges to all three levels of government – local, state and federal

Queensland is acknowledged as being a high-tax jurisdiction.  The combination of payments to local governments, the state government and the federal government are typically much larger in Queensland than in other global resource jurisdictions.

 

Many of the taxes that the sector contributes are paid by all businesses – like payroll tax, income tax, stamp duty and council rates – but many are specific charges levied only on resources companies – like royalties.  Royalties remains one of the largest sources of revenue collected by the state government.

 

The total tax burden on resources projects has a very important influence on making investment decisions.  Resources projects tend to be capital intensive with the capital invested up front and then recovered over long operating lives.  This means that the economics of resource projects are very sensitive to changes in taxes (or charges) over the life of the project.

 

QRC is working on a reform program that addresses inequitable increases in local government rates, royalty reform and other cost impediments to future development in Queensland.

 

Tenure Fees

To develop a resources project in Queensland, whether it is in the early exploration stages, development or production, there are a number of fees for holding the tenure. These costs based on the government’s administrative costs.

 

On top of fees for the administration of tenure, the Queensland Government collects annual rent during the life of tenure, QRC works with the government and members to deliver an equitable rental regime for all resource projects.

 

Environmental Fees

All resource developments operate under an Environmental Authority (EA), which is a set of conditions resource companies pay an annual fee on this Environmental Authority, which is calculated based on environmental risk associated with the development.

 

Resources developments sit at the top of the scoring scale and have the highest annual fee compared to any other environmental relevant activity (e.g. aquaculture, intensive animal farming, and commercial industries). Over recent years, government has significantly increased the annual fee for resource developments. QRC is working with member companies and government to ensure the fees are is fair and justified.