Today’s Mid-Year Budget Update figures confirm the Queensland Government has again substantially underestimated the impact of last year’s royalty tax increase on the resources sector, the Queensland Resources Council (QRC) said today.
Estimates released by Treasurer Cameron Dick show total coal royalties this financial year are $3.8 billion higher than forecast in June this year and will climb to $9.2 billion by June 30 next year.
The figure includes an extra $2.8 billion collected from Queensland’s new royalty tax tiers, suddenly introduced last year by the Treasurer without industry consultation.
Last year, the State Government’s new royalty taxes cost the industry an extra $5.8 billion, more than six times the original forecast of $800 million.
QRC Chief Executive Ian Macfarlane said the industry’s final royalties’ bill for the 2023-24 financial year will 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,” he said.
“We hope Queensland’s new Premier is open to having a discussion and understands the government can’t suddenly impose the world’s highest royalty taxes on an export industry like the resources sector and not expect it to have an impact on new investment.
“Our industry has to stay competitive or that new investment will go elsewhere, which we’re already seeing happen with companies like BHP and Glencore.”
