Jun 14, 2019

QRC welcomes royalty freeze pledge from LNP

QRC welcomes royalty freeze pledge from LNP

The Queensland Resources Council (QRC) has welcomed a commitment from the LNP State Opposition for a 10-year royalties freeze.

It said the LNP had also promised added certainty in the approvals process, which will support future investment and jobs in the resources sector, particularly in regional Queensland.

QRC chief executive Ian Macfarlane said the pledge sent an important signal to investors, and he urged the Palaszczuk Government to make the same commitment.

“This week’s budget showed once again how important our resources sector is for all Queenslanders.  The Government will collect $5.2 billion in royalty taxes from resources this year alone and another $5.45 billion next year,” Mr Macfarlane said.

“These tax returns are higher than ever and are bankrolling the Queensland budget.  Without resources royalty taxes, the Palaszczuk Government’s $841 million surplus this year would be a $4.36 billion deficit.  

“With export gas prices falling sharply over the past 12 months, there is no case for making changes to the system of collecting royalty taxes, least of all on gas.

“At current market prices, Queensland already has the highest rates of coal royalty taxes of any state in Australia. This means that when prices are high all Queenslanders benefit from greater returns.

“A 10-year royalties freeze for all commodities means investors can make their decisions for the next tranche of projects with a clear and stable set of rules.”

The QRC urged both sides of the Queensland Parliament to work with the resources sector to deliver the best outcomes for the state.

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