State pledges regions $5.7bn from coal royalties windfall

The Labor state government has revealed a $27bn windfall from coal and petroleum royalties over the next four years.

The Labor state government has pledged more than $5.7bn for regional Queensland from a projected $27bn windfall in coal and petroleum royalties over the next four years.

Treasurer Cameron Dick outlined the commitments in a budget update on Wednesday showing the $5.5bn gains being made from its controversial new coal royalties regime.

Meanwhile, the LNP says the government is lining its pockets while Queenslanders suffer a cost of living crisis and Katter’s Australian Party says the regions are being robbed.

The new coal royalties, introduced from July 1, provided new thresholds of up to 40 per cent on prices above $300 a tonne.

The budget update reveals coal and petroleum royalties are estimated to generate $12.9bn this year — $5.8bn more than expected just six months ago.

For the following three years, gains of another $800m are expected.

Previously, the government pledged $1.2bn for a new hospital in Moranbah and upgrades to the Townsville and Mackay hospitals.

On Wednesday, it announced a $4.7bn in regional commitments including a $3bn fund, dedicated to future infrastructure in regional Queensland.

Treasurer Cameron Dick delivers the 2022-23 budget update. Picture: Dan Peled

Other regional commitments included:

$1bn in equity invested in government-owned corporations to support priority regional infrastructure projects;

$150m to support workers in publicly owned coal-fired power stations and $200m for a Regional Economic Futures Fund as part of the Queensland Energy and Jobs Plan;

$150m for Common User Infrastructure to support development, extraction and production of critical minerals;

$120m to enlarge a Resources Community Infrastructure Fund focused on coal producing regions; and

A $100m Queensland Critical Minerals Investment Fund for equity investments in critical minerals companies.

Mr Dick said the commitments showed the coal royalties were worth fighting for, delivering a fair share for Queenslanders.

“We’ve secured a big win for Queensland by securing a share of the windfall profits made by coal companies,” Mr Dick said.

LNP treasury spokesman David Janetzki said while Queenslanders struggled with a cost of living crisis and crumbling services, Mr Dick crowed about how much money he has.

“The Treasurer is lining the Palaszczuk Government’s pockets at a time our health system has deteriorated, our infrastructure hasn’t kept pace with growth and we have fewer police officers than two years ago,” Mr Janetzki said.

KAP Leader Robbie Katter said the promise of a $3bn regional fund to be held by the government’s Consolidated Fund was small change compared with what the government was set to make in coal royalties over the coming years.

“The $3bn fund is an insult,” Mr Katter said.

Originally published as State pledges regions $5.7bn from coal royalties windfall