The Minerals Council of Australia (MCA) has stated that mining investment and regional jobs in Queensland are at risk following the government’s announcement of a royalty hike on coal.
According to the MCA, the 40 percent royalty on revenue together with Australia’s 30 percent tax on profit makes Queensland the highest taxing mining jurisdiction in the world. This tax grab, which has the potential to scare off investors in all commodities, will not only impact thousands of direct mining jobs but also thousands of small businesses and many communities that support mining, the MCA stated.
The MCA has concluded that the industry’s not being consulted on the proposed hike in royalties, which will impact the sector, is disappointing. “While Australia has an established comparative advantage in mining exports, future investment in new mining and minerals processing operations is not guaranteed,” the council said.