Progressive Coal Royalties Protection (Keep Them in the Bank) Bill 2024
Plain English Summary
Overview
This bill locks in Queensland's progressive coal royalty rates by preventing any future government from lowering them through regulation alone. It was introduced after the then Leader of the Opposition signalled at a Queensland Resources Council event that coal royalties could be changed, prompting the government to require that any reduction must be debated and passed as legislation through Parliament.
Who it affects
All Queenslanders have an interest in coal royalty revenue, which funds public services. Coal mining companies and future governments are directly affected, as any royalty reduction now requires a Bill to pass Parliament rather than a simple regulatory change.
Key changes
- Creates a legislative floor on coal royalty rates — they cannot be lowered by regulation
- Any future reduction to coal royalties must be introduced and passed as a Bill through Parliament
- Increases to coal royalty rates can still be made by regulation as before
- Covers all regulatory mechanisms: new regulations, amendments to existing regulations, and repeals of existing regulations
- Commenced on assent with no transitional period
Bill Story
The journey of this bill through Parliament, including debate and recorded votes.
▸Committee23 May 2024View Hansard
Referred to Cost of Living and Economics Committee
The Cost of Living and Economics Committee examined the bill over several months, receiving 8 submissions and holding a public hearing with stakeholders including the Queensland Resources Council, Queensland Conservation Council, and the Australian Institute for Progress. Stakeholder feedback was mixed: unions and conservation groups supported the bill as a way to protect Queenslanders' share of mining profits, while mining industry groups argued the royalty rates were uncompetitive and risked deterring investment. The committee found no issues with human rights compatibility or fundamental legislative principles, and recommended the bill be passed.
Key findings (5)
- Stakeholder views were divided, with unions and environmental groups supporting the bill and mining industry representatives opposing it.
- The Queensland Resources Council and Bowen Coking Coal argued the current royalty rates are uncompetitive and risk deterring investment in Queensland's mining sector.
- Queensland Treasury advised that the bill does not change coal royalty rates but relates only to the legislative process for amending them, and that no industry consultation was needed because the amendments are machinery in nature.
- The committee found the bill compatible with human rights under the Human Rights Act 2019 and consistent with fundamental legislative principles under the Legislative Standards Act 1992.
- Several submitters proposed additional measures beyond the bill's scope, including directing royalties to coal-producing communities and expanding the regime to cover gas royalties.
Recommendations (1)
- The committee recommends the Progressive Coal Royalties Protection (Keep Them in the Bank) Bill 2024 be passed.
Committee report tabled
▸Second Reading11 Sept 2024View Hansard
Said the LNP will support the bill despite calling it a political stunt, noting they have supported progressive coal royalties in every budget and motion since 2022. Strongly criticised the Treasurer's approach to the resources sector as irrational and damaging.
“I hate to disappoint the Treasurer, but we will be supporting this bill. It is a political stunt, pure and simple.”— 2024-09-11View Hansard
Supported the bill to protect progressive coal royalties as essential revenue for Queensland's cost-of-living measures.
“I rise to speak in support of this bill.”— 2024-09-11View Hansard
Supported the bill while criticising the Treasurer's conduct and the political nature of the legislation.
“We have supported it every time it has come before the House.”— 2024-09-11View Hansard
Criticised the bill as a purely political stunt and ego trip for the Treasurer, while noting the LNP has supported progressive coal royalties in the last two budgets. Raised concerns about lack of industry consultation and sovereign risk.
“This bill typifies everything that is wrong about this government and this Treasurer.”— 2024-09-11View Hansard