The Palaszczuk Government could expect almost an extra $1 billion over above their record projections in the Budget last year from coal royalties paid by the mining industry.
The Queensland Resources Council has forecast that royalties on both thermal and metallurgical coals were due to set a new record of $4.46 billion this financial year (2018-19) – or the equivalent of $12 million a day.
“At the time of the State Budget last year, the Government forecast coal royalties to deliver $3.52 billion. Compare that to five years ago (in 2013-14) when coal royalties paid to the then Newman Government were less than $2 billion,” QRC Chief Executive Ian Macfarlane said.
“Demand for Queensland coal is very strong. Overseas demand means we are expected to once again sell more than 200 million tonnes of coal. Prices are strong, particularly for metallurgical coal with indicator prices above US$200 per tonne.”
Mr Macfarlane said to put the coal royalties into context, the $4.46 billion pays for almost half of the Education budget for 2018-19 ($9.37 billion) or the equivalent of the budgets of 14 government departments and agencies, including the Departments of Premier and Cabinet, Environment and Science and Aboriginal and Torres Strait Islander Partnerships as well as the Parliament, the Electoral Commission and the Queensland Audit Office.
• Aboriginal and Torres Strait Islander Partnerships $86.8 million
• Agriculture and Fisheries $481.7 million
• Child Safety, Youth and Women $1,625.3 million
• Communities, Disability Services and Seniors $868.8 million
• Electoral Commission of Queensland $48 million
• Environment and Science $813.8 million
• Innovation and Tourism Industry Development $222.8 million
• Inspector General Emergency Management $4.8 million
• Legislative Assembly $98.1 million
• Office of the Governor $7.1 million
• Office of the Ombudsman $9.2 million
• Premier and Cabinet $116.3 million
• Public Service Commission $14.5 million
• Queensland Audit Office $43.8 million
Mr Macfarlane said coal’s contribution to Queensland is worth more than the record royalties windfall to the State Government. Coal directly provides $43.4 billion to the State’s economy representing 13% of Queensland’s gross regional product and supports more than 215,000 full-time equivalent jobs or 9% of the State’s workforce.