New figures in the mid-year Budget update confirm the Queensland Government has significantly underestimated the impact of its decision to lift the coal royalty tax rate.
Far from the Treasurer's claim that the new coal royalty scheme would generate an extra $765m in 2022-23, new forecasts released in the budget show an increase to almost $3 billion.
Clearly any industry hit with an additional $2bn in taxes - without consultation - will need rethink their business.
Queensland Resources Council (QRC) Chief Executive Ian Macfarlane said “The Government got it wrong about how much its royalty tax increase would collect, and it’s got it wrong about what these changes mean for the future of one of Queensland’s most important industries. We are already seeing major investors like Japan, BHP and Peabody casting doubt on investing in new projects after the Queensland Government introduced increased the royalty without any consultation.”
The government needs to sit down with Industry to help keep Queensland competitive.