The Government will raise the rates up to 10% with the release of the state budget tomorrow. The hike will raise the state an extra $A578 million next financial year.
Treasurer Andrew Fraser said the Government would introduce a new two-tier royalty regime where mining companies would pay 10% on every tonne of coal sold at $100 or more. Coal sold below the figure would be hit with the existing rate of 7%.
But QRC chief Michael Roche said the 43% hike in coal royalties was a raid for short-term cash at the expense of long-term economic security.
“What we are seeing under the disguise of higher financial returns to Queenslanders is an assault on the state's capacity to benefit from the coal industry's long-term momentum that the premier openly acknowledges is underpinning the economy," Roche said.
“This new super tax on coal fails to take into account that every single cost associated with production – from labour to energy and housing – is escalating; and for an industry that has never shirked from paying its way, this cash raid by the State Government will only dilute Queensland's ability to stay internationally competitive."
But Fraser says the hike is "about getting a fair return for the people of Queensland on their minerals".
He said the royalty regime was last overhauled in 1974, with a discount rate of 5% instated and raised to 7% in 1994.
“Our royalty regime does not need to set discounts to promote industry development,” Fraser said.
“Times have changed, this is not an industry that needs discount rates to stimulate investment."
The Australian Coal Association Low Emissions Technology levy will be deductible from royalty payments.
Fraser said the deductibility will be backdated to the start of the agreement in July last year.
The treasurer also committed the Government to increased infrastructure spending in the long term of $5.4 billion for its Coal Transport Infrastructure Program.