Coal royalties Qld: New mining lobby offensive to target crucial Labor seats

Queensland’s powerful mining lobby will step up its campaign against the Palaszczuk government’s royalty tax hike, pledging to target four of its must-win regional seats until the next election.

Queensland’s powerful mining lobby will step up its campaign against the Palaszczuk government’s royalty tax hike, pledging to target four of its must-win regional seats until the next election.

Queensland Resources Council will leaflet drop residents living in Townsville, Mackay and Rockhampton warning residents of the “jobs already lost and the threat to future employment and economic opportunities from the royalty tax increase”.

Treasurer Cameron Dick raised the royalty tax rate in the 2022-2023 state budget, with the record coal prices creating a windfall for the state’s coffers.

It prompted the Queensland Resources Council to launch a full-scale public relations war against the government, declaring the state had the “world’s highest coal royalty tax rate”.

The battle is now escalating with the QRC targeting the Labor seats of Mackay, Rockhampton and Townsville – all of which Labor received a swing in at the 2020 election.

Bravus Carmichael coal mine. Supplied – Cameron Laird

Mackay and Rockhampton are held by Labor backbenchers Julianne Gilbert and Barry O’Rourke on margins of 6.7 per cent and 8.6 per cent respectively.

Townsville is held by Resources Minister Scott Stewart on a tighter margin of 3.1 per cent.

QRC chief executive Ian Macfarlane, who will retire at the end of the year, said the organisation would keep fighting the state government over the royalty increase.

“We are taking our message directly to homes in these major regional cities to point out that $2bn of new investment and 2000 jobs have already been lost since the coal royalty tax increase was introduced last year without consultation,” he said.

“Queensland is losing its competitive edge when it comes to attracting investment in major new projects because investors are pulling back due to growing uncertainty about the state government’s heavy taxing policy regime.”

Treasurer Cameron Dick. Picture: Liam Kidston

Coal royalties delivered a $10bn boost to Mr Dick’s Queensland budget in June, helping him report a record $12bn surplus.

Mr Dick accused the mining lobby of attempting to assist the opposition ahead of the 2024 state election.

“The Queensland Resources Council knows David Crisafulli will cut progressive coal royalties, so of course the QRC wants to help the LNP politically,” he said.

An LNP spokesman said Mr Dick’s royalty hike was tied to spending programs across the budget’s four-year forward estimates.

“The LNP has been very clear it will deliver and fund these projects as per the budget as well as release a full tax plan ahead of the next election,” he said.

However, Mr Macfarlane, who will retire as QRC chief executive at the year’s end, said more than $100bn in planned investment in Queensland resources projects was “now at risk”.

“As with any resources downturn, regional Queenslanders will be hardest hit when investments start moving away to other states and countries,” he said.

“The good news is we know that Queenslanders are listening and are growing more concerned about the government’s attitude towards the resources sector.