Qld Budget shows why State Government policy settings must change to protect future investment and jobs

  • Posted 11 June, 2024
  • Media Releases

The Queensland Resources Council (QRC) says today’s State Budget has again confirmed how important the resources sector is to all Queenslanders and what’s at stake if the government doesn’t get the right policy settings to attract future investment in new projects.

QRC Chief Executive Officer, Janette Hewson, said the Budget also confirms the State Government has again significantly underestimated the impact of its decision to introduce the world’s highest coal tax rates.

“Six months ago, the Government forecast coal royalties would reach $9.2 billion this financial year but that figure has now soared to $10.5 billion. Overall, the resources sector contributed 14 per cent of all State Government revenue, which is more than any other industry.

“The resources sector wants all Queenslanders to benefit from our state’s abundant resources and has always been ready to pay its fair share,” Ms Hewson said.

“Queensland’s resources sector is proud of the contribution it has made to our state that benefits everyday Queenslanders.

“But without a fair and balanced royalty system that encourages new investment, our resources will remain in the ground, and no-one will benefit, and the biggest damage will be to small businesses and jobs in regional Queensland.

“The contribution our industry is able to make to Queensland today is the result of decades of good management, hard work, quality resources combined with stable and consistent policy settings that provided confidence to invest in new projects.

“Sudden changes to policy settings, including the increase in coal royalty taxes, pose a serious threat to investment and the resources sector’s future capacity to underpin Queensland’s economic prosperity.

Ms Hewson said the QRC’s latest TV Advertisement, launched last weekend, highlights the impact of the coal royalty tax increase on everyday Queenslanders, particularly in regional communities.

“These are small business owners, apprentices, trucking operators and publicans who all depend on a strong and confident resources sector to help their local businesses thrive and to secure their local jobs.,” Ms Hewson said.

“We know that everyday Queenslanders understand that unless there’s ongoing investment in new resources projects, the nest egg the resources sector delivers each year to Queenslanders will shrink. We need the Queensland Government to listen to their concerns.

“We continue to invite all sides of politics to sit down with the sector and come up with a fair and sustainable royalties regime, that keeps Queensland competitive and protects and grows jobs and opportunities for everyday Queenslanders.” Ms Hewson said.

“The long-term impacts of declining investment will be felt across all Queensland commodities, not just coal. That includes the critical minerals needed for the renewable energy technology to achieve our lower emissions targets, here in Queensland and among our trading partners.

“The best way for the Queensland Government to secure a long-term royalties stream that benefits everyday Queenslanders, is to get the right policy settings, including a fairer royalty system, that will encourage investment in new projects, and secure the jobs that come with it.”

Media Contact: Matt Dunstan – [email protected]