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Coal royalties set to change in Queensland after 10-year freeze

Treasurer Cameron Dick says government is talking to industry ahead of ‘announcement’ on royalties

Machinery on a pile of coal in Gladstone, Queensland.
The state’s coal, gas and mineral exports hit a record high of $77bn between March 2021 and 2022, according to the Queensland Resources Council. Photograph: Daniel Munoz/Reuters
The state’s coal, gas and mineral exports hit a record high of $77bn between March 2021 and 2022, according to the Queensland Resources Council. Photograph: Daniel Munoz/Reuters

Queensland is likely to increase coal royalties for the first time in a decade when the state budget is handed down on 21 June.

The state’s treasurer, Cameron Dick, said coalminers had enjoyed a 10-year royalty freeze, but that was set to change.

“We’re working through that detail at the moment. But ultimately we’re talking to the industry about that, and then we’ll make an announcement at an appropriate time,” Dick told reporters on Wednesday.

The state’s coal, gas and mineral exports hit a record high of $77bn between March 2021 and 2022, according to the Queensland Resources Council (QRC).

The QRC chief executive, Ian Macfarlane, said miners would fork out more than $6bn in royalties to the state government in 2021-22.

“Resources royalties go straight into the Queensland budget to pay for doctors, nurses, teachers and other state-funded essential services and infrastructure,” Macfarlane said.

Ahead of the state budget, Queensland doctors have called on the government to fund $2bn towards ambulance ramping, fill gaps in mental health and address unmet needs in palliative care.

The Queensland branch of the Australian Medical Association (AMA) said 1,500 more hospital beds were needed across the state, at a cost of about $1.2bn, to help address ambulance ramping.

“The Omicron outbreak, combined with the reopening of borders and the winding back of public health measures, has led to thousands of healthcare workers being infected or furloughed as close contacts,” the AMA’s state president, Maria Boulton, said.

“Elective surgeries have been further delayed. Patients are waiting longer on ambulance stretchers to be admitted to emergency departments, let alone into overflowing hospital wards.”

As well as more beds, the AMA wants another $700m put towards mental health and more than $120m for palliative care, as well as investments in workplace safety and digital health technology.

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The Chamber of Commerce and Industry Queensland (CCIQ) said businesses want red-tape relief and help reducing their carbon footprint.

The CCIQ’s chief executive, Heidi Cooper, said more than half of businesses surveyed rated red-tape reform among their top state-budget priorities.

“This budget should continue to address the past period of upheaval, while also future-proofing businesses, removing hurdles and enabling our skilled workforce to provide Queensland with a competitive advantage,” she said.

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Photograph: Tim Robberts/Stone RF
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Businesses also want the budget to guarantee to ongoing funding for the EcoBiz program, designed to help businesses reduce their waste, water and energy usage.

Close to 40% of businesses said investment incentives for sustainable practices were among their top priorities.

Meanwhile, the government has also announced that United Airlines will fly three times a week between Brisbane and San Francisco as part of its $200m Attracting Aviation Investment Fund.

The premier, Annastacia Palaszczuk, said the deal would support 385 local jobs and inject $73m into the economy.