State govt spends $1.5m in coal royalties counteroffensive against Queensland Resources Council

The state government is launching an ad campaign pitching the benefits of coal royalties to Queensland communities as the resources sector continues to fight tougher taxes.

A coal royalties advertising counteroffensive will be launched by the state government as it moves to convince regional Queenslanders riches gleaned from smacking the mining industry with tougher tax has been worth it.

Treasurer Cameron Dick, launching the $1.5m advertising campaign, defended the “modest” spend amid a cost-of-living crunch and said it was necessary to pitch to Queenslanders the “importance of the benefits of coal royalties”.

The spend pales in comparison to the ongoing campaign against progressive coal royalties being run by the Queensland Resources Council, which has argued the need for “balance” between taxation and profits companies can keep to put toward further investment in the state.

QRC chief executive Ian Macfarlane said the full impact of the government’s coal royalty change wouldn’t be known for five years to a decade when major new resource projects go to other countries and jurisdictions such as NSW.

Treasurer Cameron Dick. Picture: Steve Pohlner

A whopping $15.3bn coal royalties windfall – three times what the government had expected – helped pay for relief measures in the latest state budget, including at least $550 in energy rebates for every Queenslander.

Mr Dick, in a move that triggered a rare lashing from Japan’s ambassador to Australia at the time, introduced a new coal royalty tier in the 2022 state budget in a bid to take advantage of record high prices.

The new tier was meant to rake in $765m in the 2022-23 financial year, but sustained high coal prices resulted in an estimated $5.7bn in revenue uplift.

Overall, the coal royalties changes will rake in $7.2bn for the state between 2022-23 until mid-2027, up from the $1.2bn Treasury had initially forecast in last year’s budget.

The 30-second advertisement, produced by CHEP Network for the government at a cost of about $700,000, depicts people in communities in regional towns, including Moranbah, making use of state-sponsored facilities such as sport fields, dams, and a hospital.

The ad outlines how coal royalties “support” local sporting groups, helped pay for the Moranbah Hospital and “inland energy” – meaning the state government’s pumped hydro schemes outside of Mackay and Gympie.

Mr Dick said his “primary focus” for the campaign was ensuring the “sustainability” of the coal industry going forward, and that Queenslanders “need to know it’s going back to them”.

The government’s latest campaign brings the total spend on spruiking its coal royalty tax changes to $2.6m since 2022.

The QRC’s campaign has been running across TV, radio, online platforms, newspaper and billboards, with Mr Macfarlane vowing to keep it going until the day of the election if needed.

Originally published as State govt spends $1.5m in coal royalties counteroffensive against Queensland Resources Council