Burgeoning coal returns boost Qld revenue outlook

Coal royalties are expected to deliver Queensland a whopping $9.2 billion in revenue in 2023-24, according to latest government forecasts. This is a $3.8 billion lift from what was projected in the June Budget, but a peak mining industry body is tipping that the final bill will be even higher. Treasurer Cameron Dick released an update on the Queensland Government’s 2023-24 Budget today, saying it was the envy of the nation. Queensland Treasurer Cameron Dick. A record 2022–23 net operating surplus, driven largely by high commodity prices and progressive coal royalty tiers, is backing a planned $96.2 billion capital program over the next four years. The 2023-24 Budget update also delivers additional cost-of-living relief, including freezing public transport fares in 2024 and boosting the First Home Owner Grant to $30,000. “The 2023-24 Budget Update reveals our net operating deficit is $138 million, $2 billion smaller than forecast, our General Government Sector net debt is a fraction of other major states and shrinking, and our General Government Sector revenue is estimated to be $3.7 billion more than forecast," Mr Dick said. “This strong budget position allows us to expand on the services Queenslanders rely on, invest in the future, and increase the cost-of-living relief." The update noted that the progressive coal royalty tiers introduced last year were projected to bring an extra $9.4 billion over the five years to 2026-27 compared to previous royalty rates. Queensland Resources Council chief executive Ian Macfarlane said the final royalties’ bill for the 2023-24 financial year would be even higher than today's forecast. “Based on industry predictions, which have been more accurate than Treasury forecasts in the past, we believe total coal royalties collected by the State Government this financial year will climb to about $12.8 billion, more than double the original estimate of $5.3 billion,” he said. "This is why our industry is fighting so hard on this issue. “The impact of over-taxing the resources sector is far greater than the government seems to realise. There’s no such thing as a money tree in Queensland’s back yard. “Less resources investment means a weaker state economy and less jobs and business opportunities in the future, which will affect every Queenslander. That’s where we’re heading unless the State Government is prepared to sit down and reconsider its decision.” Queensland’s coal exports are forecast to grow 5 per cent in 2023–24 and a further 8¼ per cent in 2024–25. Elevated oil prices in recent years have driven the value of LNG exports to record highs, growing by 24 per cent to $24.1 billion in 2022–23, following growth of 104 per cent the previous year. Metals production rebounded in September quarter 2023, with most operations returning to normal production levels following lower production volumes early in the year, the Budget update shows. With several processors also increasing output, including from the Sun Metals zinc refinery expansion, the volume of metals exports is expected to rebound strongly in 2023–24.

Burgeoning coal returns boost Qld revenue outlook

Industry Queensland

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