The Queensland government has introduced legislation aimed at keeping the state’s progressive coal royalties and preventing any future tax cuts for multinational coal companies.
The progressive coal royalty system, implemented in the 2022 state budget, means royalty rates increase incrementally as coal prices rise. However, the progressive tiers only apply during periods of high coal prices when producers are reaping “extraordinary returns,” the government said.
Deputy Premier, Treasurer and Minister for Trade and Investment Cameron Dick tabled the Progressive Coal Royalties Protection (Keep Them in the Bank) Bill 2024 in the Queensland Parliament, stating it ensures any proposed changes to lower the progressive coal royalty rates would require Parliamentary approval.
So far, the additional royalty revenue has allowed over $16 billion in investment across the state, including in coal-producing regions.
Opposition Leader David Crisafulli has faced pressure to clarify his stance on the royalties after telling mining companies at a Queensland Resources Council event that “what we take to the election at the end of this year you will be able to take to the bank”.
In a statement, Dick challenged Crisafulli’s ambiguity, saying: “With less than 22 weeks until the State Election, enough is enough. David Crisafulli needs to come clean with Queenslanders and he needs to do it now.”
The royalty public ruling applies to anyone who mines coal, including those with a mining licence and those operating on land without one.
The royalty is a percentage of the value of the coal sold, disposed of, or used during a reporting period.
The royalty rate depends on the average price per tonne of coal sold in that period — the higher the price, the higher the royalty rate.
There are formulas provided to calculate the exact rate based on price ranges and those applicable can deduct certain costs from the value of the coal before calculating the royalty.
