“Without the change proposed in this Bill, modification or removal of progressive coal royalties could occur without adequate public or parliamentary scrutiny,” the explanatory notes read. The bill will force any future decrease in coal royalty taxes to be legislated, making it harder for future governments that wish to make changes.
The Queensland Resources Council said the state has the highest coal royalty tax rate in the world, a situation that is damaging companies’ ability to explore for the energy fuel and bring new mines online.
“The people of Queensland would have instead benefited from Government working with our industry to strike more balanced royalties to provide a positive economic future for our state,” said Janette Hewson, CEO of the group.
Progressive coal royalty tiers were first introduced in June 2022 as part of the state’s budget.
According to the government, they are “designed to ensure Queenslanders receive a fair return on the use of the State’s valuable and limited natural resources during periods of high coal prices.”
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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