Queensland Resources Council has $40m dig at coal royalties

Queensland Resources Council chief executive Ian Macfarlane has warned the state’s ‘aggressive’ coal royalty tax threatens the sector’s viability.

Queensland Resources Council chief executive Ian Macfarlane. Picture: Zak Simmonds

Queensland Resources Council chief executive Ian Macfarlane has warned the state’s “aggressive” coal royalty tax threatens the sector’s viability, as he took aim at the prospect of a new federal mining tax as a “misguided” strategy to lower power bills.

In a keynote address to the QRC’s annual lunch, Mr Macfarlane unveiled the sector’s $40m two-year campaign titled Keep Queensland Competitive, which warns that companies are now uncompetitive on the global stage.

The ad, set to run across print, television, radio and digital platforms, says Queensland’s tax rate is now five times the rate of NSW and the highest in the world, placing “investment, projects and jobs” at risk.

“The government should reconsider, and work with industry to keep Queensland competitive,” the ad says.

In his address, Mr Macfarlane attacked the Palaszczuk government for hiking its coal royalty tax to 40 per cent despite its election promise to not introduce any new or increased taxes.

Amid widespread frustration over the government’s lack of industry consultation, Mr Macfarlane said the state’s reputation as a safe place to invest had been “seriously damaged”.

He unveiled a new economic report which found the sector had contributed a record $96bn to the state economy.

“This is up an incredible $10bn on the year before and has been achieved despite the ongoing impact of the global pandemic, and despite ongoing anti-mining activism around the world and in our own backyards,” he said. “Yet instead of governments that nurture and defend our industry from unfair and unfounded attacks, these days we only really see governments talking about us when they want more taxes.”

Tensions between the resources sector and the state government ramped up on Wednesday after Premier Annastacia Palaszczuk, Treasurer Cameron Dick and Resources Minister Scott Stewart boycotted the lunch, with Ms Palaszczuk criticising the resources sector for spending $40m attacking her government.

“I was invited to today’s lunch,” she said. “I have made it very clear that my ministers will not be attending this lunch because of the ... $40m campaign.

“If companies are making $40m to go into a campaign, that money can be very well spent in the leadup to Christmas helping Queenslanders.”

In a virtual address to the lunch, Japanese Ambassador Shingo Yamagami warned billions of dollars of future investment into hydrogen and critical minerals were at risk after the coal tax hike damaged Australia’s trading relationship with the nation.

He said Japanese companies’ eagerness to collaborate with Australian counterparts was underpinned by trust in Australia as a “safe and reliable place to invest” but that businesses were “yet to see any glimmer of hope” that the hike be wound back.

In his keynote address Mr Macfarlane also cautioned against a new federal mining tax after Prime Minister Anthony Albanese confirmed a new tax on gas and thermal coal was under consideration in a bid to quell soaring energy prices.

“The tax has been proposed as part of a misguided government strategy to lower energy prices for families and businesses,” he said.