Qld Budget: Controversial coal royalties to contribute to a $5bn surplus
The Palaszczuk government says it is on track to deliver a $5bn surplus this financial year, in a significant turnaround for the State Budget, amid a coal royalties bonanza.
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The Palaszczuk government is now on track to deliver a $5bn surplus this financial year in a significant turnaround for the State Budget amid a coal royalties bonanza.
Treasurer Cameron Dick delivered the mid-year Budget Update on Wednesday, revealing the new coal royalties regime will generate billions of more dollars than what it was initially meant to make.
EDITOR’S VIEW: Coal profits a win for Treasurer, but at what cost?
The government is now on track to post a $5.18bn surplus in 2022-23 – a massive revision from the $1.029bn deficit that had been forecast in the June Budget.
Spending this financial year is now set to climb about $1.1bn from what was forecast in June to reach $76.047bn, due to extra health spending and the one-off water bill discount for South East Queenslanders.
And over the forward estimates, government spending is set to reach $79.28bn by 2024-25.
Total government debt is expected to climb to $129.3bn by 2024-25 – which is about $800m more than what had been predicted in Mr Dick’s Budget in June.
Revenue meanwhile is set to soar by $7.3bn from the forecast in June – largely due to the huge uplift in royalties.
It was revealed overnight the government’s new coal royalties regime is now set to rake in $2.95bn this financial year alone – up from the roughly $765m that had initially been projected.
Mr Dick used his speech to the Queensland Media Club to announce the government would set aside $3bn from the royalties in a long-term consolidated fund that is dedicated to regional infrastructure.
“These new royalties that were earned in regional Queensland will not leave regional Queensland,” he said.
“Coal royalties are worth fighting for. Queenslanders deserve their fair share. And they will receive it.
“The windfall profits made by coal companies are also a win for the people who own these mineral resources: The people of Queensland.”
Mr Dick credited sustained higher coal prices, including “unprecedented thermal coal prices”, for pushing up royalties revenue well beyond what had been forecast.
“There has been some criticism of Queensland Treasury for not perfectly predicting this,” the Treasurer said.
“As any Treasury official will tell you, forecasting is a complex task at the best of times.”
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