Qld coal: Labor government moves to lock in royalties tax hikes

Treasurer Cameron Dick has moved to enshrine coal royalty tax hikes in legislation, to make them harder for future governments to reverse, triggering anger from the state’s peak resources body.

Controversial coal royalty hikes will become even more difficult to dismantle under a state government ploy to politically wedge the Opposition months before the election.

Treasurer Cameron Dick will on Thursday move to enshrine his coal royalty changes — which make Queensland the highest-coal-taxing state in the world — into law.

This ensures any future government wanting to water down the rules must do so in full public view, instead of simply tweaking regulation like the government did in 2022.

The state government has been heaping pressure on the LNP to show its hand on coal royalties, with the Opposition so far committing to keeping the revenue it brings untouched over the four year budget forecasts.

Coal prices have hit historic highs in recent years amid supply constraints sparked by Russia’s war in Ukraine.

Mr Dick in 2022 made changes to coal royalty tiers to tax coal super profits, a move which resulted in the state government raking in $15.3bn in revenue in 2022-23 — five times more than expected.

And the coal “rivers of gold” were expected to flow into 2023-24 with at least $9.2bn in revenue according to the state government’s mid-year budget update.

The state government will argue the new laws will set the tiers as a floor, meaning a future government can’t avoid public scrutiny when making changes.

Treasurer Cameron Dick

Mr Dick’s changes in 2022 sparked outrage from mining companies, the resources peak body and even the Japanese ambassador to Australia amid accusations the government failed to properly consult with the industry.

The Queensland Resources Council has launched two successive advertising campaigns hoping to pressure the government to reverse the changes, warning taxing coal companies more meant they would have less in the bank to invest.

Queensland’s peak resources body on Thursday slammed the state government for treating the critical industry as a political plaything.

Queensland Resources Council chief executive Janette Hewson said the decision to use the state’s most important export industry to “play political games” was disappointing.

She said the laws would sent a very negative message to the international investment community.

“This legislation achieves nothing for Queenslanders, except to make our state even less competitive when it comes to attracting investment in the new resources projects that will drive future jobs and economic benefits,” Ms Hewson said.

“It’s not just coal but all Queensland commodities, including critical minerals.

“Once again, we have seen the Queensland Government make a significant change affecting the resources sector without any notification to, or consultation with, the industry.”

Mining giants BHP and Anglo American have also previously warned the changes had made the state unpredictable and unstable for investors.

Mr Dick said Opposition Leader David Crisafulli had been given ample time to tell Queenslanders his clear position on progressive coal royalties, and with less than 22 weeks until the state election he needed to make his views known.

The Opposition has previously indicated it would not make changes to the three-tier coal royalty regime at least over the forward estimates — or the four financial year period — outlined in the budget.

The state government’s royalties wedge comes just months after a resources sector survey revealed the number of mining and energy companies planning to expand their Queensland operations had halved.

According to the QRC’S State of the Sector quarterly report, 89 per cent of mining sector chief executives believe the state government is not supportive of the resources sector and fails to defend the industry against misinformation.