The Palaszczuk Government’s 25 per cent gas royalty hike will translate into a slug of more than $13 million a year on Queensland industry and households through higher energy costs, the Queensland Resources Council (QRC) said today.
QRC Chief Executive Ian Macfarlane said it was likely the cost of the tax hike would be passed on directly to consumers.
“When you put up taxes someone has to pay, and in this case unfortunately that means that domestic gas users will have to reach further into their pockets,” Mr Macfarlane said.
“Domestic industry and manufacturers have been struggling under the weight of higher gas bills, which can run into the millions of dollars already. An extra tax hit of more than $13 million a year will make Queensland manufacturers less competitive and it will have a bigger flow-on effect for other Australian businesses that rely on Queensland gas.
“Up until now the Palaszczuk Government has been taking sensible measures to supply domestic industry with affordable and reliable gas, including through domestic gas only acreage releases.
“A 25 per cent gas royalty tax increase could prove to be self-inflicted economic damage.
“QRC has urged the Queensland Government to exclude domestic gas from the royalty tax increase and to delay the introduction of any gas royalty increase until January 1 2020 to address confusion about the legislation.
“Under the new legislation, the tax increase is applied retrospectively to January 2019.
“Queensland’s resources sector pays its fair share of tax and we are ready to work in close consultation with the State Government on its plan for a longer term gas royalty review.
“We are also seeking a meeting with the Treasurer to discuss a longer term freeze on coal and mineral royalty taxes.
Queensland’s reputation as a safe place to invest depends upon stable and transparent laws and regulations and a commitment to open and good faith consultation.”
Queensland’s oil and gas industry supports more than 39,000 full time jobs, both directly and in supporting industries.