‘Broken promise’: New mine tax will cost jobs

An open letter from some of the nation’s biggest mining companies accuses the Palaszczuk government of a broken election promise if it increases royalties.

Mining companies are stepping up their war against a government plan to boost the state’s coffers with an increase in mining royalties.

Some of Australia’s largest mining companies, including BHP, Glencore and Bravus, have released an open letter to Premier Annastacia Palaszczuk warning her an increased resources royalty tax would risk regional jobs and put more pressure on electricity prices.

The letter, published in this weekend’s Sunday-Mail, also claims retirees relying on investment returns would be put at risk, while Canberra’s GST rules meant 80 per cent of the increased tax would go to the commonwealth.

“The people who should benefit most from Queensland’s resources will actually receive less,” the letter said.

“Higher resources taxes risk regional jobs.”

The co-signed letter also argues an increase to the royalty tax by the Palaszczuk government would be a broken promise.

“At the last election you promised Queenslanders that your government would have no new or increased taxes,” it said.

Queensland Resources Council chief executive Ian Macfarlane has promised a sustained campaign against any increase to the resources royalty tax. Picture: Mark Calleja

Ms Palaszczuk said it was “only just” discussions about a royalties tax occur amid record coal prices.

It was revealed last week Treasurer Cameron Dick was considering an increase to the royalties tax in the June 21 budget.

The revelations sparked a strong rebuke from Queensland Resources Council (QRC) chief executive Ian Macfarlane, who has now pledged a sustained campaign against any increase to the tax.

He said the government would not reveal how much it would be or how it would apply.

“Resources regions are in the dark too, even though they have the most to lose if Queensland prices itself out of the market for new projects,” he said.

“The Palaszczuk government is risking the state’s future by planning a new tax hike for one of Queensland’s most important industries.

“We think Queenslanders have a right to know the government’s plans and why it is breaking an election promise.”

The QRC boss noted companies in Queensland were already paying “double the royalties” of NSW.

“The government is planning to increase resources royalties taxes, and it’s doing so behind closed doors and without consultation with industry,” Mr Macfarlane said.