Coal royalties grab ‘justified’ after $1.2bn pours into Qld coffers

The Palaszczuk government is tipped to make more than $1bn in coal royalties in just the first two months of its new regime – despite predictions it would take four years.

Deputy Premier Steven Miles says if coal royalties are larger than the Palaszczuk government has forecast, it “strengthens the case” to have such a royalty regime in place.

It comes after the Queensland Resources Council revealed the government looked set to make $1.2bn in royalties within the first two months of its new regime, despite forecasts it would take four years.

“If that number is true, then the profits those companies are making are even more than that, even more than we projected, and so our argument was that they were making incredible profits and that they should contribute more to the value of those resources that they are buying from Queenslanders,” Mr Miles said on Monday.

Deputy Premier Steven Miles at a media conference at Maritime Green, Northshore. Picture: Liam Kidston

“Now they’re saying that their profits are even greater than we projected that they were and that even strengthens the case to have in place a royalty regime that ensures Queenslanders get the value of the resources that they have.”

Since the government announced the royalties hike in June, the resources sector has slammed it, claiming it risked future investment.

But Mr Miles said he believed Queensland would continue to see “very significant investment”.

“If you’re selling any other product as a wholesaler to a retailer and the retailer was making massive increases in profits, well, you’d increase your wholesale price,” he said.

“We are simply making sure that the royalty rate reflects the price that they (companies) are earning.”