Queensland’s latest coal tax increase is anticipated to boost state revenue by $6.5 billion in two years but has raised concerns within the mining sector.
The Queensland Resources Council (QRC) is set to publish a report this week highlighting the industry's substantial $116.8 billion contribution to the state's economy last financial year.
According to the economic assessment conducted by Lawrence Consulting and commissioned by the QRC, the mining sector supported 532,918 jobs in the past year, with 45,065 being direct and 484,078 indirect roles.
Three new tiers of rates
Following a decade-long freeze on coal royalty, Treasurer Cameron Dick introduced three new tiers of rates as coal prices surged in 2022.
In its first year, the scheme delivered the state’s biggest budget surplus on record and allowed the government to fund $550 energy rebates for every household, a new hospital in Moranbah and the CopperString electricity transmission line.
The QRC though was not impressed and funded a $40 million advertising campaign, which it plans to run until the election in October next year, saying the royalty scheme has made companies uncompetitive on the global stage.
Queensland taxpayers have launched two campaigns at a cost of $2.6 million to counter the QRC attacks and support the government’s decision to raise taxes on mining companies.
“We shouldn’t be giving companies a reason not to invest here”
QRC chief Ian Macfarlane said “conservative” Treasury estimates predict coal royalty revenue will be about $20 billion in the first two years of the new scheme, which is about $6.5 billion more than what would have been paid under the old regime.
He added: “Suddenly ripping this amount of money out of a cyclic, commodity-based industry like the coal sector in just two years is a big mistake and has been poorly received by the market.
“Queensland’s current prosperity is the result of decades of past investment by mining and energy companies from all around the world, as well as by companies based right here.
“Unless that level of large-scale, long-term investment continues, Queensland’s economy is going to look very different in the future. We shouldn’t be giving companies a reason not to invest here.”