4 days Ago By Savannah Meacham and Fraser Barton
Queensland's hefty coal royalties have been labelled a "sugar hit" by a mining boss but the premier insists he wants to incentivise business investment with fewer regulations. Login or signup to continue reading David Crisafulli says all companies will receive fair regulation and taxation under the Liberal National Party government, while maintaining a legislated progressive coal royalty scheme over the next four years. It comes as BHP Australia President Geraldine Slattery said Queensland's coal royalty scheme was the highest globally - 43 per cent more than other jurisdictions - making the Sunshine State a difficult investment decision.
Queensland is the coal capital of Australia, accounting for 56 per cent of the nation's production. "When we say we're going to do something it'll count for something and we will have stability in taxation and regulation," the premier told reporters on Monday. "You are going to be treated with respect, you're going to be held to a high standards, but you're not going to have constant changes to regulation and taxation.
"We're going to give people the certainty to reinvest in this great state." Progressive coal royalty tiers were legislated by the former Labor government with the LNP committing to the scheme in the four-year forward budget estimates. BHP has five metallurgical coal mines in Queensland with royalties propping up state government coffers since being reintroduced in 2022.
In 2022-23, the coal royalties delivered a $15 billion return to Queensland's budget while in 2023-24 it was $9 billion. Ms Slattery warned the tax scheme would not benefit Queensland in the long term by discouraging investors seeking more cost-effective alternatives. "The sugar hit of revenue won't leave the state better off in the long run if investment is driven elsewhere," she told the Queensland University of Technology's business leaders' forum on Monday.
"In this, I am not advocating for policy critique for the sake of it - rather I am suggesting that a partnership approach between business and policymakers will likely create better outcomes for all. "But it starts with making our views known in a respectful way, rather than grumbling on the sidelines." It is not the first time BHP has come out swinging against the state's coal royalty scheme with the mining giant's chief executive telling the company's annual general meeting last month the tax makes the state unattractive for investment.
Mike Henry said it was driving the company to work overseas in Chile or in other Australian states where it's cheaper but he hoped future governments would reconsider the scheme. The Queensland government has previously confirmed it was committed to progressive coal royalties, which require parliamentary intervention to be changed, over the next four years. Australian Associated Press DAILY Today's top stories curated by our news team.
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