Survey confirms Qld Govt royalty tax damages resources sector investor confidence

  • Posted 09 May, 2023
  • Media Releases

9 May 2023

The Queensland Resources Council (QRC) says a new international survey has revealed the rising concern held by investors in Queensland’s resources sector as a result of the State Government’s snap decision to introduce the world’s highest coal royalty tax.

QRC Chief Executive Ian Macfarlane said Queensland has dropped seven places in the survey in a key index for international investors.

“In the Fraser Institute Annual Survey of Mining Companies 2022, on the question of Queensland policy perception, the state fell to 28th place just ahead of Brazil and Victoria, and 16 places behind Tasmania,” Mr Macfarlane said.

“The results are not good for long term investment in the Queensland resources sector, not just coal.

“The Queensland government introduced the high royalty increase for coal without consultation and with no regard to any stakeholders.

“Government policies play a significant role in a company or country’s decision to invest billions of dollars of into resources projects, and it’s clear many are now thinking twice about making those significant investment decisions in Queensland,” Mr Macfarlane said.

“The full impact of an investment downturn will be felt in five to ten years when new projects dry up along with thousands of jobs.

“Queensland has abundant reserves of the resources the world needs, from coal through to the critical minerals that will drive a decarbonised future and we should be at top of mind for potential investors.

“Queensland’s overall survey score was saved by the state’s attractive geology.

“On the eve of a Federal Budget that will again confirm the crucial importance of the resources sector to our economic strength, it’s time for the Queensland Government to reconsider its coal royalty tax increase.

“Queensland’s economy, and thousands of future jobs, depend on long term investment in our resources sector and the State Government needs to take serious notice of survey results like these.”