Resource industry executive says coal royalties are a tax on Central Queensland

As relations between the state’s powerful resources sector and the government disintegrate, one resource industry executive claims the new royalties regime is a tax on Central Queensland in favour of Brisbane. But the government is starting to hit back.

As relations between the state’s powerful resources sector and the government disintegrate, Central Queensland is emerging as a key battleground in a duelling persuasion campaign.

A resource industry executive, who did not wish to be named, has claimed the new coal royalties introduced by Treasurer Cameron Dick in June are a tax on Central Queensland to fund Brisbane.

“The government’s royalty tax is raiding the Bowen Basin to fund projects in Brisbane,” he said.

“This is a tax on Mackay, Moranbah, Rockhampton and all Central Queensland communities.

“The industry has tried to engage with government but they are not interested in any alternative ideas.”

At the Queensland Resources Council’s luncheon, which was boycotted by Premier Annastacia Palaszczuk and Resources Minister Scott Stewart, chief executive Ian Macfarlane trumpeted the same view and said his organisation’s $40m ad campaign attacking the new regime would appeal directly to Central Queensland’s mining towns.

Queensland Resources Council chief executive Ian Macfarlane talks at the QRC’s annual forum and lunch at the Brisbane Convention Centre. Picture: Zak Simmonds

“Our campaign, which launches in Queensland tonight, will tell Queenslanders exactly what our state stands to lose from the government’s unreasonable tax grab,” he said.

“It will include TV, radio and online advertising, as well as newspaper and billboard advertisements in Brisbane and regional communities.”

The new royalty regime adds three tiers to the existing tiered structure, with companies now paying 20 per cent on the dollar when coal prices exceed $175 per tonne, 30 per cent on the dollar when prices climb beyond $225 per tonne and 40 per cent when they exceed $300.

This means the state’s resources firms are now paying the highest top rate of tax in the world.

Treasurer Cameron Dick has defended the new regime, arguing Queenslanders should get more from the substantial profits coal firms have reported in recent months.

On Wednesday, Mr Dick toured Moranbah alongside Isaac Mayor Anne Baker and touted the royalties as a new funding stream for projects across Central Queensland.

“The new Moranbah Hospital will be the bricks and mortar proof of our government’s commitment to supporting Queensland resources communities,” he said.

“The towns of the Bowen Basin deliver for the entire Queensland community through the royalties their mines generate.

“It is only right that those royalties are reinvested in our resources communities.”

Resources Minister Scott Stewart talks to the miners at Civeo Camp in Moranbah. Grosvenor Lodge president Steven Hall stands behind him. Picture: Duncan Evans

Resources Minister Scott Stewart has also heralded the progression of new mines in the Basin as a signal of his government’s support for Central Queensland.

In just the past few weeks, the government has approved an expansion to Carborough Downs near Moranbah and two mines near Emerald.

“At their peak, these two mines (near Emerald) will produce more than three million tonnes per year of steelmaking coal, which will be processed then transported by rail to the Port of Gladstone and exported to key international markets,” Mr Stewart said.

“This means from Emerald to Gladstone, regional communities will benefit from job opportunities and the economic flow-on effects of these projects.”