QLD Treasurer Cameron Dick rejects QRC push for coal royalty rethink

Coal titans and the powerful Queensland Resources Council have sought fresh talks with Queensland’s Treasurer as they warn of major job losses, comparing the row to the revolt over the GPs payroll tax.

Fury over new coal royalties has failed to disrupt the controversial policy, with the state government stating bluntly this week there will be “no change” to its new revenue collection regime, despite months of concentrated industry pushback.

Coal titans like BHP and Anglo American, and the Queensland Resources Council have been throwing haymakers at the government, warning of an impending investment breakdown in the sector, but the aggressive persuasion campaign looks only to have hardened the position of Treasurer Cameron Dick.

“As the Treasurer made clear last year, every dollar of the new royalty tiers will be reinvested in regional Queensland,” a spokesman said.

“We will continue to meet with the mining lobby when requested, but there will be no change to progressive coal royalties.”

Treasurer Cameron Dick is committed to maintaining the new royalty structure, despite months of concerted industry pushback against the policy. Picture: Lyndon Mechielsen

Mr Dick met with senior QRC representatives in December and it is understood the government informed the QRC beforehand that a change to the policy, which introduced a top royalty rate of 40 per cent when coal prices go above $300 a tonne, was off the table.

QRC chief executive Ian Macfarlane said the meeting failed to resolve industry concerns.

“After the meeting, the QRC wrote to the Treasurer to request a follow-up meeting in February with coal producing CEOs so he could hear first-hand how the new royalty regime has dramatically changed their outlook on future jobs and investment in Queensland’s resources sector,” he said.

“So far, we have not heard back from the Treasurer, but we remain hopeful our industry will be provided with this opportunity.”

The Treasurer’s spokesman confirmed Mr Dick’s office had received the letter and a follow-up meeting would be scheduled in, though an exact date is unclear.

The QRC this week called for a rethink of the policy, referencing the shelved land tax and the government’s review of the GP payroll tax.

“We need the government to sit down with our industry, like it has done with the AMAQ and RACGP on the GP payroll tax issue, so it can get a better understanding of why this new tax is causing companies to pull back on investing in Queensland,” Mr Macfarlane said.

“The government does not seem to understand that imposing the world’s highest royalty tax rates on our coal producers is affecting future investment in all Queensland commodities, not just coal.”

Queensland Resources Council chief executive Ian Macfarlane speaks at the peak body’s annual State of the Sector luncheon in Brisbane. Picture: Dan Peled

The government claims the new royalties enjoy broad community support and the coal industry continues to prosper.

“It is pleasing to see the coal industry going from strength to strength, with record high prices and continuing investment,” the Treasurer’s spokesman said.

“It is also pleasing to see the continuing strong community support for progressive coal royalties.”

The December budget update revealed $2.95bn in additional revenue drawn from the new royalty tiers, far above the initial $765m projection.