Queensland coal royalties haul tops $10.5bn

Coal royalties contributed $10.541 billion to Queensland's coffers in 2023-24, but are forecast to play a smaller role moving forward as prices decline. Budget documents indicate the new tiers of the progressive coal royalties, introduced in 2022, are expected to account for about $3.6 billion of that 2023-24 total. Treasurer Cameron Dick hails this as returning a fair share of coal super-profits to Queenslanders. But the Queensland Resources Council says the large contribution from the mining sector shows what’s at stake if the government doesn’t get the right policy settings to attract future investment in new projects. QRC chief executive officer Janette Hewson said the Budget also confirmed the State Government had again significantly underestimated the impact of its decision to introduce the world’s highest coal tax rates. “Six months ago, the Government forecast coal royalties would reach $9.2 billion this financial year but that figure has now soared to $10.5 billion," she said. "Overall, the resources sector contributed 14 per cent of all State Government revenue, which is more than any other industry. " Ms Hewson said the QRC’s latest TV advertisement, launched at the weekend, highlighted the impact of the coal royalty tax increase on everyday Queenslanders, particularly in regional communities. "We continue to invite all sides of politics to sit down with the sector and come up with a fair and sustainable royalties regime, that keeps Queensland competitive and protects and grows jobs and opportunities for everyday Queenslanders,” Ms Hewson said. “ "The long-term impacts of declining investment will be felt across all Queensland commodities, not just coal." The Budget papers note Queensland’s coal industry benefited from an additional $88 billion in export revenues across the period from July 2021 to March 2024 compared with the same period just three years earlier (i.e. July 2018 to March 2021). 'Queensland’s new progressive royalty tiers, announced in the 2022–23 Queensland Budget, are ensuring that Queenslanders are receiving a fair share of this windfall, reflecting an appropriate return on their valuable and non-renewable resources,' the Budget papers from Treasury state. The premium hard coking coal spot price fell sharply in March 2024, from $US314 per tonne at the end of February to $US243 per tonne at the end of April. 'Looking forward, as supply conditions continue to normalise, the hard coking coal spot price is expected to continue to moderate towards medium‑term fundamentals,' the Budget papers state. 'Accordingly, the revenue raised from the new tiers — which only take effect during periods of high prices — will decline over time. However, their continuing operation will ensure Queenslanders share appropriately in the prosperity from any unforeseen spikes in coal prices into the future.' The State Government said the 2024–25 Budget continued its commitment to reinvest the additional revenue received from the high global prices for the state’s resources directly back into Queensland communities. More specifically, the increased fiscal capacity provided by the new progressive royalty tiers had enabled the government to continue to address the immediate cost-of-living challenges facing Queenslanders and invest in the necessary foundations for long-term economic growth and prosperity, such as the Queensland Energy and Jobs Plan (QEJP), it said. The Budget includes a commitment to $3.739 billion in new and expanded measures in 2024–25 to support Queenslanders in tackling cost-of-living challenges including $1000 rebate on electricity bills (in addition to a $300 rebate from the Australian Government).

Queensland coal royalties haul tops $10.5bn

Industry Queensland

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