Mining investment and regional jobs in Queensland are at risk following the Palaszczuk Government’s announcement of a blatant resources royalty grab on an industry that has for years been paying more than its fair share of tax.
This extraordinary 40 per cent royalty on revenue together with Australia’s 30 per cent tax on profit makes Queensland the highest taxing mining jurisdiction in the world. This is unacceptable.
This tax grab is short-sighted and counterproductive over the long term and has the potential to scare off investors in all commodities.
It will not only impact thousands of direct mining jobs but also thousands of small businesses and many communities that support mining.
Mining investment and jobs should not be put at risk through any move to increase the already high tax burden on the industry.
Mining operations are the backbone of many regional Queensland towns, providing employment, opportunity and a sense of community.
Everyone across Queensland benefits immensely from successful mining operations from jobs right through to paying for services such as hospitals and schools.
Stable and internationally competitive tax regimes are critical to ensuring mining investment continues to grow and deliver further benefits for all Queenslanders.
Australian mining consistently pays amongst the highest tax in the world including company tax, royalty receipts and payroll tax to federal, state and territory governments.
The system works as more royalties and company tax are delivering to the people of Australia – over $39 billion in 2019-20 and will go higher.
In the period 2010-11 to 2019-20, Australian mining paid $106 billion in royalty taxes and $132 billion in company taxes – 30 per cent of all company tax paid in that period.
While Australia has an established comparative advantage in mining exports, future investment in new mining and minerals processing operations is not guaranteed.
The mining industry faces significant competition from emerging mining regions in Africa, as well as traditional mining centres in South America and Canada to attract investors.
The decision by the Queensland Government was made despite assurances prior to the last state election that there would be no new or increased taxes that could undermine investment in the sector.
Equally disappointing was that the industry was not consulted on the proposed hike in royalties; a process that is critical for a change that will impact the sector.