Anglo-American Australian Chief Operating Officer Nick Barlow said the increase in the royalty would hurt the business case for new investments in the state.
“This new tax is inconceivable and will place a huge burden on our industry and the mining regions of Queensland,” he said.
It comes when the NSW government relies on homeowners, foreign investors and betting companies to return state accounts to a surplus in a budget that is based on strong economic growth rather than new taxes. cover a deficit caused by a declining housing market.
The NSW government will spend an additional $ 21.4 billion over the next four years from the December half-yearly budget update, including $ 10 billion in the 2022-23 election year alone.
In a year in which NSW Treasurer Matt Kean has pledged “not to skimp and cut costs,” the government is capitalizing on more tax revenue to increase its spending, with more than $ 7 billion in additional revenue improvements to 2025-26. in spending initiatives.
Qld is spending an additional $ 10.8 billion more than future estimates since the December budget update, but has been helped with additional $ 15 billion in revenue from copyright, other tax revenue and funding. of the GST.
Large spending budgets have been dictated as the Reserve Bank of Australia seeks to ease growing inflationary pressures on the economy, driven by a hot real estate market and rising wages.
Despite an 11-hour Queensland Resources Council campaign to avoid new taxes, Dick said it was time for miners to pay more, as current coal prices were above $ 500 a tonne, well above $ 150 a tonne. dollars a tonne when the existing copyright scheme was created.
The three new levels include a 20 percent gift rate for prices over $ 175 a ton; 30 percent for prices over $ 225 a ton and 40 percent for prices over $ 300 a ton.
The new tax measures are expected to raise an additional $ 1.2 billion a year over the next four years.
“The rise in coal prices has been unexpected and we believe it’s fair for the unexpected boom to benefit not only shareholders but also the owners of the resource – the people of Queensland,” Dick said.
The announcement of the copyright rally at 2 p.m. led to the sale of pure coal miners, Stanmore shares fell 21 percent, Coronado shares fell 10 percent , while aspiring coal mine developer Bowen Coking Coal lost more than 40 percent of its value almost instantly.
BHP President Minerals Australia Edgar Bastoe said he was “deeply concerned” about the negative impact the new tax would have on Central Queensland’s production, jobs and communities.
“The cost of doing business in Queensland is already high and additional cost pressures will discourage investment, operational growth, job creation and local business spending across the state,” he said.
“A new tax is damaging Queensland’s reputation as a stable place to invest and making it difficult for the state to compete with other global jurisdictions to attract significant new investment that would bring long-term value to communities and the state economy.”
Nick Barlow of Anglo American said mining companies needed higher prices to be able to make significant capital investments to maintain mining operations and infrastructure.
Barlow estimated that with the new rise in Queensland gifts, the company is contributing about 60 percent of its profits to the federal and state governments.
Queensland Resources Council CEO Ian MacFarlane said it was a “fuck in the gut” for the industry.
“This is a seriously wrong economic policy that will make Queensland’s number one exporting industry and private sector entrepreneur less competitive internationally,” he said.
But Dick said the new progressive gift scheme will only go into effect during higher prices and return to the existing three-tier gift scheme below $ 150 a tonne once prices inevitably return to normal levels.
“We know that foreign shareholders in coal companies will not like these changes. But they can rest easy,” Dick told the state parliament.
“We are not raising tariffs that apply to existing levels, as the former LNP government did in 2012, during a fall in the sector.”
Large corporation tax, health care spending
Large companies with a payroll of more than $ 10 million will also be affected by a new tax: a 0.25% tax in addition to the existing payroll tax to pay an additional $ 1.6 billion for services mental health for the next five years.
The rate rises to 0.75 percent for companies with more than $ 100 million in annual salaries.
Australian Business Council Executive Jennifer Westacott said any additional tax on payroll tax is a “job tax”.
“It doesn’t make sense to target employers with a payroll tax hike that will hurt their ability to create jobs and boost the economy,” he said.
Dick denied the tax increases were an unfulfilled election promise and said his previous promises were about tax increases for Queensland households, not businesses.
“People in this state know what I was saying at the time,” he said.
Queensland Prime Minister Annastacia Palaszczuk also backed her treasurer, saying most of Queensland would be behind them because there was no additional tax burden on households.
Queensland Prime Minister Annastacia Palaszczuk said households would not face any additional tax burden. Rhett Hammerton
“Coal companies have made record profits, and I understand they may want to run a campaign, but I think the people of Queensland are on our side,” he said.
“Queensland residents will see that some of these companies are making billions of dollars, coal is exported overseas and we can reinvest that money for Queensland residents in hospitals and schools and the Queensland region.”
After facing months of bad headlines on the hospital ramp, the Palaszczuk government has invested $ 23.6 billion in the health portfolio, including an additional 2,500 hospital beds.
Some of the issues are expected to be resolved before the October 2024 elections.
There will also be a $ 59 billion infrastructure budget over the next four years, including $ 15.5 billion in 2022-2023, which is expected to create 48,000 jobs.
An increase in mining royalties and property taxes has helped Mr. Dick turn around the budget and generate an unexpected $ 1.9 billion surplus this year.
But budget deficits will return next year ($ 1,029 million) and 2023-24 ($ 1,083 million) before the smaller surpluses return in 2024-25 ($ 137 million) and 2025-26 (183 million). million dollars).
Coal Copyright has contributed $ 5 billion this fiscal year alone.
LNG copyright is expected to provide $ 4.8 billion over the next four years, but the gas industry has avoided a copyright increase after signing a five-year deal with the Queensland government. last year.
The state’s total debt situation has improved, but total debt is still hovering around $ 130 billion and is projected to reach $ 128.5 billion in 2025-26.
Dick said Queensland’s net debt and gross debt position were much better than the budgets of NSW and Victorians, which also sank in the red during the COVID-19 pandemic.
“We are spending $ 31 billion more, but our gross debt position is lower than expected,” he said.
With record spending on health and education, Mr Dick denied that his spending plans would contribute to inflationary pressures on the economy at a time when the Reserve Bank of Australia was raising interest rates.
“I think we’ve found the right balance to support jobs to provide the jobs that Queenslanders deserve,” he said.
Economic growth is expected to be 3 percent for this year before declining slightly to an average of 2.75 percent annually from future estimates.
Moody’s rating agencies said Queensland’s revenue recovery has “exceeded our initial expectations” by keeping the state’s credit rating at Aa1.
“However, spending consolidation will be difficult to achieve as the state faces underlying cost pressures as a result of rising inflation and interest rates,” he said.
“Despite the underlying strength of the economic recovery, we do not expect the Queensland debt burden to stabilize before the end of fiscal year 2026.”
With Peter Ker