Time for Albo to intervene as Qld coal tax controversy goes national: Dutton

Queensland’s coal royalties hike has escalated to a national issue, Peter Dutton says, calling for the Prime Minister to intervene.

Queensland’s controversial coal royalties hike has escalated from a state to a national issue and needs the Federal Government to step in, Opposition Leader Peter Dutton says.

It follows Japan’s ambassador to Australia Shingo Yamagami this week unleashing blunt criticism of the Queensland Government’s royalty hike.

Mr Yamagami said the coal royalties increase had affected trust with Japanese businesses and would have flow on impacts outside Queensland and coal.

Japanese ambassador Shingo Yamagami

Mr Dutton seized on the comments, saying he feared it would have widespread impacts on Japanese investment in Australia.

“He’s been very clear about his assessment, his analysis of what this means back in Tokyo,” the Opposition leader said.

“Japanese companies are involved he says not only with minerals, but hydrogen, infrastructure and a variety of cutting edge technologies.

“The coal royalties scheme warrants much greater interest from the federal government given this state based issue has national implications,” he said.

“Are closest partners are watching with interest, they worried themselves … about sovereign risk.

“Getting our settings wrong could jeopardise future investment from overseas companies, which are looking for new opportunities.”

He made the comments at the Mineral Council of Australia’s Minerals Week in Canberra on Wednesday.

Opposition Leader Peter Dutton

Federal Resources Minister Madeleine King was contacted for comment.
She has previously said coal royalties were not set by the federal government and were a matter for the Queensland Government.

Under the new royalties scheme, the top royalty tax rate rose from 15 per cent to 40 per cent.

Companies now pay 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.

Coal prices have been reaching record highs of more than $400 per tonne, as a range of global factors including Russia’s invasion of Ukraine sees prices skyrocket.

Queensland Treasurer Cameron Dick has previous argued that given the elevated price of coal, any additional royalties paid by mining companies would be a fraction of the profits made.

The Queensland Resources Council and Mr Yamagami have been critical of the lack of consultation that took place before the royalty regime was changed.