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QRC urges competitive policies after mid-year budget

The Queensland Resources Council (QRC) is calling for greater policies to maintain competitiveness in the state’s resources sector following the release of the mid-year fiscal and economic review (MYFER).

QRC chief executive officer Janette Hewson said the best way to overcome Queensland’s significant economic challenges is by supporting the resources sector.

“With prices now falling, the best way to increase revenue from the resources sector that will benefit all Queenslanders is to bring more new projects online and encourage sustained investment in existing resources projects,” she said.

“However, the impact of the world’s highest coal royalty tax rate in Queensland remains a significant deterrent to investment.

“As the industry has consistently pointed out, the coal sector is subject to regular commodity cycles and we’re seeing prices return to what are considered more normal levels.”

According to MYFER, falling commodity prices contributed to a decline in royalty revenues, with coal royalties expected to total $7.9 billion for 2024–25, a $4.7 billion drop from the prior financial year.

However, the QRC highlighted that the sector contributed around 26 per cent of state revenue last financial year, with coal producers contributing close to 20 per cent.

“A fair and balanced royalty system and streamlined approvals mean more projects and more money coming into Queensland for the benefit of all Queenslanders,” Hewson said.

“QRC welcomes the new Queensland Government’s establishment of a Productivity Commission and a Resources Cabinet Committee as an industry enabler and to promote the sector’s importance to Queensland.”

The MYFER showed that operating deficits totalled $30.2 billion over the forward estimates, alongside a surge in non-financial public sector borrowing to $217.8 billion by 2027–28.

To counter this course, the state government has introduced a Productivity Commission and a Resources Cabinet Committee, initiatives QRC has welcomed.

“Industry will work with the Queensland Government to strengthen the sector,” Hewson said.

“A healthy pipeline of investment is fundamental to delivering new projects that create jobs and provide ongoing social and economic opportunities, especially in regional areas.”

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