Qld election 2024: Crisafulli responds to Labor warning LNP will decrease coal royalties

The Opposition has brushed off claims by Labor that if elected it will make changes that could cost the state nearly $10bn in revenue.

Treasurer Cameron Dick. Picture: Lyndon Mechielsen

• Mundine: Taxed to death

The LNP will not make any changes to revenue-raising coal royalties in the first term of government Opposition Leader, David Crisafulli has declared, skewering the government for ratcheting up a “ridiculous scare campaign”.

The Opposition, on track to form government after next month’s election according to polling, has previously ruled out changes to the high coal royalty tax rate across the budget’s forward estimates which currently go out to July 2028.

It was a pledge that prompted the state government to argue the LNP would change the moneymaking rates at its third state budget should they win the election.

Higher coal royalty rates have netted $9.4bn in additional revenue since they were raised without consultation in 2022 – prompting a major backlash from the mining industry.

They have been used in part to fund Labor’s significant but temporary cost-of-living relief, including electricity bill credits.

Mr Crisafulli on Monday shot down Treasurer Cameron Dicks assertions the LNP would change royalty rates as a “ridiculous scare campaign”.

“They’re baked into the forwards and there won’t be change in the forwards,” Mr Crisafulli said.

“I’ve also said that I want to give the industry certainty for the term of the parliament … it tells you what (Mr Dick’s) saying is fundamentally not true.

“When we say something, it matters. So what I’m saying is there is no change in the forwards in that term.”

Mr Crisafulli declined to say what his plans were for coal royalties should the LNP get a second term.

“We’ve won one of the last 12 general elections, I’m kind of busy at the moment,” he said.

Mr Crisafulli had earlier declined to say whether an LNP government would tinker with the royalty tiers come 2028, and accused the government of whipping up fear.

“I want Queenslanders to know, despite the Labor Party scare campaign, that money is in the forwards and it’s important that we do a couple of things; one is that we get back to delivering projects on time and on budget, and the second is to make sure that we give stability,” he said.

“The best way to fix that is to give people stability. So we’ve been very upfront, despite what’s been the bizarre scare campaign from the treasurer.”

Shadow treasurer David Janetzki used a Queensland resources lunch last month to promise an LNP government would give miners certainty about tax changes.

“I want to send a clear message to our trading partners that when we say something we will follow through on it,” he said.

Opposition Leader David Crisafulli. Picture: Lachie Millard

The state government plans to ram through legislation in the final week of parliament next month to enshrine the higher royalty tiers into law.

It is designed to wedge the LNP on a vote and force any future government to amend laws if it wants to change royalty tiers.

Treasurer Cameron Dick said: “This would be catastrophic to the state’s budget and would result in disastrous cuts to cost of living relief, our infrastructure program and reductions in services like health, housing, police and education.

“It’s like a reverse Robin Hood, taking from the needy and giving it to the rich.

“Before the next election, David Crisafulli needs to be honest to Queenslanders about his tax cuts for mining companies and outline which services and projects he would cut to pay for it.”

Former Labor national president Warren Mundine, who quit the party in 2012, accused the state government of betraying Queensland regions with its surprise coal royalty hike undermining the state’s economy.

Mr Mundine said the royalty hike was dreamt up by city elites without consideration about how it would affect long-term investment.

“The immediate effect of the royalty hike was a stunning surplus and a government spending spree,” he said.

“The long-term effects will be to drive the coal sector out of the state and damage the Queensland economy and regions.”

Mr Dick noted BHP and eight other major miners remained committed to investing in Queensland.

“That includes BHP, who were highly critical of those new progressive coal royalties and of course (CEO) Mike Henry then ultimately turned around and said the coal mines that BHP operate in Queensland were high-value assets and they would continue to invest $1bn each and every year into their operations in Queensland.

Mr Dick said additional revenue generated for the state was being reinvested, particularly in regional Queensland.

Originally published as Qld election 2024: Crisafulli responds to Labor warning LNP will decrease coal royalties