Published: August 18, 2025 |

[Click image to enlarge]

Queensland’s premier has ruled out changes to the state’s coal royalties regime, often dubbed the world’s highest, amid pressure from the industry.

David Crisafulli gave his strongest denial yet of any changes at a press conference in Emerald, in central Queensland, ahead of a cabinet meeting on Monday.

“We’re not changing that scheme. We’ve been upfront. I said to you clearly before the election, we aren’t touching the royalty regime,” said Queensland’s premier David Crisafulli.

Introduced in 2022 amid high coal prices, the Labor policy raised more than $10 billion for the state budget in a single year. Royalties revenue has since declined alongside coal prices.

Under the scheme, miners pay a 20 percent royalty for prices above $175 a tonne, 30 percent for prices above $225 a tonne, and 40 percent for prices above $300 a tonne. Royalty rates in other jurisdictions are typically in the single digits; in NSW, coal producers can be charged as little as 8.8 percent depending on the type of mine.

As opposition leader, Crisafulli ruled out any changes to the royalties scheme during the period covered by the forward estimates, raising the possibility of changes after the 2028 election.

The CEO of the Queensland Resources Council, Janette Hewson, said it was “disappointing” that the industry’s concerns “are not being properly considered”.

The state’s resources sector has consistently opposed the policy, arguing that it would deter investment and could lead to mine closures. It reportedly spent $40 million on advertising attacking the previous Labor government.

“Around a quarter of Queensland coal companies are struggling to break even. The world’s highest coal royalty tax rates is a bad policy contributing to that,” said Hewson.

Royalties have been cited as the reason for a series of downturns, including by Bowen Coking Coal after it went into administration last month. Coronado Coal also cited the levy as a reason for a reported $73 million loss last week.

Crisafulli told media in Emerald that he was “very bullish about the future of the coal industry in Queensland”, because the government would grant it “certainty”.

The central Queensland town of about 15,000 is among the country’s most coal-dependent, with about 16.6 percent of the local labor market employed in “coal mining”, according to the Australian Bureau of Statistics.

“We believe in the future of the coal industry. We believe in the future of regional Queensland, and with the confidence that we are giving through the certainty of taxation, regulation and approvals, you are going to see a bright future for the industry,” said Crisafulli.

The government has extended the life of Queensland’s coal power plants, and ordered a review of its emissions reduction targets.

Source: The Guardian

Be in-the-know when you’re on-the-go!