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Queensland government hikes coal royalties to cash in on record prices
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Report summary
The Queensland government has increased coal royalties after a 10-year freeze. The new royalty structure adds three more pricing-tiers, with a top rate of 40% when prices rise above A$300/t. This compares to the current top rate of 15% above A$150/t. The new royalty has been imposed to allow the state government to share in the super-profits sweeping both the metallurgical and thermal coal sectors. We estimate a US$ 4.3 billion increase in government take for 2022 alone based on the royalty change.
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