Queensland’s royalty revenue a factor in the Commonwealth Grants Commission Proposal 2025-26

Click here for photo of QRC Chief Executive Officer Janette Hewson.

The Queensland Resources Council (QRC) agrees with the Crisafulli government when it says the Commonwealth Grants Commission proposal to reduce GST revenue to Queensland is penalising the state due to the strength of our resources sector.

The QRC warned about the potential of losing a share of GST revenue and putting Queensland’s long term prosperity at risk when the outgoing government introduced the World’s highest coal royalty regime in 2022.

The proposal to reduce Queensland’s GST revenue by more than $5 billion comes at a time when coal prices have dropped, and resources companies are facing skyrocketing operating costs.

QRC Chief Executive Officer, Janette Hewson, said the State Government is at a critical juncture and must consider how to protect Queensland’s economic prosperity while maintaining its competitiveness for global investment.

“We are seeing the realities of poor policy decisions made by the outgoing government play out for Queenslanders,” said Ms Hewson.

“The World’s highest coal royalty regime is not delivering for Queensland, putting jobs and businesses at risk.”

“Other Australian states do not enjoy the same stability as Queensland due to our strong resources sector.”

“Our state is at risk of losing future revenue and investment if we can’t retain our productivity and global competitiveness.”

Last financial year, the resources sector generated around 26 per cent of all government revenue raised in Queensland with coal producers alone responsible for close to 20 per cent, and contributing $85.3 billion to the state economy.