Queensland Resources Council’s Ian Macfarlane says resource communities, such as Gladstone, could suffer if Cameron Dick increases royalty tax
A peak coal group has slammed the Queensland government’s lack of transparency ahead of a likely increase to coal royalties in next week’s state budget. See why resource communities could be impacted.
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Regional jobs and future projects could be in jeopardy if the state government increases its resource royalties tax, Queensland’s peak coal body has warned.
Queensland treasurer, Cameron Dick is likely to increase coal royalties for the first time in a decade when he hands down the state budget next Tuesday night, a move industry groups say will hurt regional communities and bred uncertainty.
Queensland Resources Council (QRC) chief executive, Ian Macfarlane says regions dependent on the coal industry, such as Gladstone, Rockhampton, the Central Highlands and Mackay, have the “most to lose” if the state prices itself out of the market for new projects.
“Projects may not go ahead or won’t be expanded now because of the instability and uncertainty created by the Queensland Government changing its royalty tax regime almost overnight,” Mr Macfarlane said.
The QRC claims the state government’s planned royalties hike is being done without consultation and Mr Macfarlane said the treasurer’s “cavalier attitude” to tax changes raised red flags for investors.
“Queenslanders, particularly people living in regional areas, are entitled to know the full details of the Palaszczuk Government’s resources royalty tax hike, which is being done behind closed doors and without industry consultation,” he said.
“The Government won’t even say how much the new tax will be or how it will apply, this is the opposite of an open and transparent government.”
Treasurer Dick last week said coal miners had enjoyed a decade-long royalty freeze but he was now working with them, amid record coal exports, to implement potential increases.
Gladstone MP, Glenn Butcher said while details of any royalty increase would be announced in the budget, the Treasurer had assured Queenslanders that any changes would be fair.
“There has been a 10 year freeze on coal royalties and right now prices are at record highs … so it’s important Queenslanders get their share of that in the future,” Mr Butcher said.
“Royalties are important as they help fund our police, teachers, health professionals and much more in Queensland, which Gladstone benefits from.”
Prime Minister Anthony Albanese declined to comment on the potential royalties increase during a visit to Gladstone for the first of his ‘regional cabinet’ meetings on Wednesday.
“I have a big job as the Prime Minister of a big country, so I’ll do my job and I’ll let Premier Palaszczuk do her job,” Mr Albanese said.
Gladstone continues to be an epicentre for the resources sector with almost 2700 direct jobs.
All of Queensland’s LNG is exported through Gladstone and a third of the state’s coal exports go via the Port City’s coal terminals, which amounted to 69 million tonnes of coal in 2021.
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