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COMMITTEE’S REPORT

The committee tabled Report No. 9, 57th Parliament – Progressive Coal Royalties Protection (Keep Them in the Bank) Bill 2024 on 2 August 2024. The Bill was passed in the Legislative Assembly on 12 September 2024.

About the Bill 

On 23 May 2024 the Deputy Premier, Treasurer and Minister for Trade, and Investment Hon Cameron Dick introduced the Progressive Coal Royalties Protection (Keep Them in the Bank) Bill 2024 into the Queensland Parliament. The Bill was referred to the Cost of Living and Economics Committee for detailed consideration.   

View: Explanatory Speech 

View: Bill 
View: Explanatory Notes 
View: Statement of compatibility

The purpose of this Bill is to amend the Mineral Resources Act 1989 and to introduce a coal royalty rate floor, ensuring that regulations cannot prescribe coal royalty rates lower than those periodically prescribed. This requires Parliamentary consideration for any decrease in coal royalty rates, ensuring that progressive coal royalties cannot be removed without the Legislative Assembly's endorsement.

The need for this Bill has emerged due to statements from the Leader of the Opposition and other Members of Parliament suggesting that progressive coal royalties would be modified or removed at a future date if they form Government. Without this change, such changes could occur without adequate public or parliamentary scrutiny. In June 2022, the Government introduced progressive coal royalty tiers as part of the state Budget, the first change after a ten-year royalty rate “freeze” to ensure Queenslanders benefit from the state's natural resources during high coal prices.

Since the introduction of these tiers, some Members have made statements about progressive coal royalty tiers that indicate these tiers no longer have bipartisan support and suggested potential changes by a future government through subordinate legislation. Recently, the Leader of the Opposition, in an address to the Queensland Resources Council, declined to commit to retaining progressive coal royalties, Instead, the Leader of the Opposition told coal companies present at the function that he would provide a royalties policy that they "will be able to take to the bank.

On the current law, significant revenue losses could be imposed on Queensland by a future Government without majority support from the Legislative Assembly. although the Legislative Assembly would have the capacity to disallow such a change under the Statutory Instruments Act 1992, a change followed by disallowance would promote uncertainty in the revenue base and in the resources industry.

Further information

Further information including written briefings, correspondence, response to submissions, transcripts and answers to questions taken on notice are available under the Related Publications tab.

submissions

Submissions closed on Friday 14 June 2024.  

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