Progressive coal royalties will commence on 1 July 2022 following passage of enabling legislation through the parliament without opposition.
Treasurer Cameron Dick said no member of parliament voted against progressive coal royalties, nor did any party express opposition to the substance of new progressive coal royalty tiers.
He said: “I am pleased there were no votes cast against progressive coal royalty tiers from members representing the Liberal National Party (LNP), Katters Australian Party (KAP), One Nation, or the Greens political party.
“This can be contrasted to the 2019 budget revenue bill, when the LNP voted against higher gas royalties.
“This demonstrated support for progressive coal royalties from across the political spectrum is good news for coal producers, promising policy stability as these arrangements will not be politicised either now or in an election environment.
“With royalty arrangements now settled with support across the political spectrum, Queensland’s partnership with industry will be renewed through the new Queensland Resources Industry Development Plan.”
Dick said new progressive coal royalties ensured a fair return to the people of Queensland when profits were extraordinary, but would protect coal producers and coal jobs should prices decline.
He continued: “Unlike the LNP Government’s actions in 2012, we have not jacked up coal royalties on low prices in the middle of a downturn, and we’re pleased all parties have seen the good sense of Labor’s approach.
“Financial markets also agree, with continued strong investment interest in Queensland resources, including coal.
“Share prices for our coal producers continue to perform strongly, demonstrating our royalty changes are good for Queensland and good for business.”
The Revenue Legislation Amendment Bill 2022 passed the Legislative Assembly on Friday 24 June 2022 without opposition.
The Revenue Bill is distinct from the Appropriation Bills, which are voted after completion of the estimates process.
Minerals Council of Australia chief executive Tania Constable noted in a statement that Australian mining consistently paid among the highest tax rates in the world, including company tax, royalty receipts, and payroll tax to federal, state, and territory governments.
Constable said: “Mining operations are the backbone of many regional Queensland towns, providing employment, opportunity and a sense of community.
“Everyone across Queensland benefits immensely from successful mining operations from jobs right through to paying for services such as hospitals and schools.
“While Australia has an established comparative advantage in mining exports, future investment in new mining and minerals processing operations is not guaranteed.
“The mining industry faces significant competition from emerging mining regions in Africa, as well as traditional mining centres in South America and Canada to attract investors.
“The decision by the Queensland Government was made despite assurances prior to the last state election that there would be no new or increased taxes that could undermine investment in the sector.
“Equally disappointing was that the industry was not consulted on the proposed hike in royalties; a process that is critical for a change that will impact the sector.”