You may have heard about the State Government’s progressive coal royalties that were introduced in the 2022-2023 state budget.
Certainly, there has been a deep pocketed campaign by the mining companies across a
range of media platforms to infer that the sky is falling, and that the mining industry will be in ruins following the introduction of the new rate structure.
And yet, they prosper.
Mining output and profits have increased since the introduction of the progressive royalties scheme.
It is structured so that when global coal prices are high and the profits of those companies are high, the royalty rate rises.
Likewise, when the market returns to its more stable prices, the royalty rate reduces; much like our progressive income tax structure.
The people who benefit from progressive royalties are Queenslanders.
Royalties on Queensland resources are paid because those resources belong to Queenslanders, so it follows when the value of those resources are high, the return to Queenslanders should be higher.
Since the progressive rate commenced on 1 July 2022, $16 billion has been paid
back to Queenslanders.
This in turn has been invested in critical economic and social infrastructure and essential services across Queensland, including in the regions that directly support the coal industry.
The progressive coal royalties rate now forms an integral part of the Queensland budget, and future spending and the commitments we make to Queenslanders on infrastructure and service delivery is dependent on the forecasts that are made about our resource income.
In order for the government to improve services and deliver cost of living measures like
the $1000 household electricity rebate, the 50c flat fare and the registration discounts, our resource income is vital.
While Queenslanders are doing it tough it is only fair that those that are making super profits, and paying a fraction of the tax rates that we pay, contribute their share.
This money would otherwise be going to shareholders, the bulk of which are overseas. These are your resources after all.
