Labor enshrines coal royalty super tax in law ahead of Queensland election
The controversial super profit tax on coal mining companies comes into law ahead of the October state election, in a move designed to wedge Opposition Leader David Crisafulli.
Queensland Labor has enshrined its super-profit tax on coalmining companies into law ahead of the October state election in a move designed to ramp up pressure on Opposition Leader David Crisafulli to guarantee he would retain the scheme for a full four-year term of government.
Treasurer Cameron Dick hiked coal royalty rates in his 2022 budget following a decade-long freeze, after promising no new or increased taxes during the 2020 state election campaign.
The three-tier coal royalty scheme, which includes the highest taxing rates in the world, funnelled $15bn into government coffers last financial year and delivered Mr Dick the biggest state budget surplus in history.
But the royalty regime, with a top tier of 40 per cent for prices above $300 a tonne, drew strong criticism from the resource industry, particularly BHP, which claims it is threatening future investment and jobs, and may lead to the closure of mines.
Under legislation introduced to state parliament by Mr Dick on Thursday, the existing three tiers will be locked in and lowering the tax rate will require a vote in parliament. Previously, coal royalty rates were set through regulation.
Premier Steven Miles said the laws would safeguard one of the state’s biggest revenue streams. “Our plan will ensure the royalties we receive from multinational mining companies cannot be lowered by the government of the day,” he said.
“This means any reduction in what is owed to Queenslanders would be subject to the public and parliamentary scrutiny it deserves.”
The government used the coal windfall last year to bankroll energy rebates, a new hospital in Moranbah and the CopperString electricity transmission line.
Mr Crisafulli has previously vowed not make changes to royalty rates for at least four years because revenue has already been committed across the budget’s forward estimates, but he has refused to rule out axing the regime after mid-2027.
An LNP spokeswoman on Thursday said the opposition had twice voted to support the coal royalties scheme “and publicly supported the regime and measures they fund across the forward years of the budget”.
“The LNP will follow its long-standing practice of considering this legislation, clearly another political game, but wouldn’t it be a lump of coal for Labor’s farcical scare campaign if the LNP does support the legislation?” she said.
Queensland Resources Council chief Janette Hewson said the draft laws, expected to pass before the election, sent a negative message to the international investment community but the Greens, which hold two seats in the Queensland parliament, want the base royalty rate on all resources lifted from 7 per cent to 35 per cent.
Greens MP Michael Berkman said royalty revenue was about to plummet because coal prices had fallen.
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