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 our global competitors pay in their home jurisdictions.
Many of the taxes that the sector contributes are paid by all businesses – like payroll tax, income tax and stamp duty – but many are specific charges levied only on resources companies – like royalties. Royalties remains one of the largest sources of revenue collected by the Queensland government. Many local Governments will double dip on their rates collection with rates collected on resources tenure as well as on land ownership.
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 advocates for a stable and predictable regime of taxes (including local government rates and royalties paid to the State Government).
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 recover the government’s administrative costs.
On top of fees for the administration of tenure, the Queensland Government collects rent each year during the life of tenure, QRC works with the government and members to deliver an equitable rental regime for all resource projects.
All resource developments operate under an Environmental Authority (EA), which is a set of conditions to protect environmental values. 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.