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Miners claim royalties scheme will hit investment, regional jobs

The plan to hike coal royalties would have an immediate impact on foreign investment and also create long term consequences for regional jobs and business, according to the Queensland Resources Council.

Jun 09, 2022, updated Jun 09, 2022
QRC chief executive Ian Macfarlane 
(Photo: QRC)

QRC chief executive Ian Macfarlane (Photo: QRC)

The Government has confirmed it is devising a new royalties scheme for the mining sector but has not specified how it would work or what level of royalties it would earn from it, but the industry claims it is already paying the highest level of royalties in the world and double that of NSW.

Higher taxes for the resources sector has been dangerous path for Governments in the past. The Rudd Government imposed a short-lived super profits tax on the resources sector during the mining boom of a decade ago and it became a huge political problem for it after a spirited campaign by the industry.

The proposed changes follow a bumper year for the coal industry in Queensland which was likely to mean resources companies would pay a record $6 billion in royalties to the State Government, about $2 billion more than was expected, according to QRC chief executive Ian Macfarlane.

The industry expects that the Government will add extra tiers to a system which charges differing rates depending on the price received.

“Resources companies are more than prepared to contribute substantially to the Queensland community. Last financial year our sector contributed a total of $84.3 billion to the State economy, which set a new record,” he said.

“The imposition of higher royalty taxes on the resources sector right now is poor economic policy and a bitter pill to swallow at a time when producers are finally looking at a sustained period of investment which was set to benefit generations of Queenslanders.”

He said it was disingenuous for Treasurer Cameron Dick to frame the royalty increase as a tool to support health spending.

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“The resources sector is already paying more than double the coal royalty taxes it paid last year due to higher commodity prices, so every Queenslander benefits when our sector is doing well.”

The State Government has been contacted for comment.

 

 

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