Coal mining super tax may be here to stay as govt enshrines levies into law
A super tax on coal profits will be enshrined in Queensland law, making it harder for future governments to change the divisive royalty hike.
The government has enshrined its coal mining super profits taxes into law. (AAP image)
Deputy Premier and Treasurer Cameron Dick said on Thursday he would table a bill that would require legislative changes for any future modifications to the state’s coal royalties.
Lobby groups and even a Japanese ambassador have taken aim at the tax which has pumped billions of dollars into the state’s economy since its introduction almost two years ago.
The Liberal National Party opposition has indicated it will not make changes as the tax is baked into the budget forward estimates.
But the state government is not taking any chances ahead of the October election, saying the tax will be legislated to protect royalties for the benefit of Queenslanders.
“There would be no quiet Friday afternoon regulatory changes under any future Queensland government,” Mr Dick told parliament on Thursday.
“Any reduction to the coal royalties will be subject to the scrutiny of the people of Queensland through their parliament – as it should be.”
The royalties were introduced in July 2022 after a 10-year freeze, ensuring miners pay a larger proportion of tax for coal sold for more than $175 per tonne.
Coal royalties have supported Queensland’s post-pandemic boom with forecast revenue expected at $9.4 billion over five years.
Households in the Sunshine State are set to receive $1000 energy rebates from July 1 as a result of the super tax.
The government said the $2.5 billion rebate package would be funded by its royalties.
Coal lobby groups have actively campaigned against it since its introduction, claiming it puts investment in Queensland and jobs at risk.
In 2022, Japanese ambassador to Australia Yamagami Shingo warned the hike could affect Japanese firms’ investment plans in Australia.
Multinational mining giant Anglo American has also recently announced it will sell its five Queensland steelmaking coal interests in the Bowen Basin.
But Mr Dick said investor confidence in Queensland coal has never been higher.
“That confidence has seen BHP reverse a two-decade policy to now seek new growth in Queensland through the prized mines of Anglo American that they want to purchase,” he said.
