Coal and government revenue

New Gen Coal

Coal in Australia

 

Coal and government revenue

The coal industry is a key contributor to the welfare of all Australians. Every year, it pays billions to Commonwealth and State governments in the form of corporate taxes and royalties. As one of Australia’s largest industries, coal mining also contributes billions through GST payments and the income taxes paid by workers directly and indirectly employed by the industry.

 
 

Support for all Australians

In 2007, The Minerals Council of Australia estimated that the Australian mining industry accounted for 9.1% of all Commonwealth company tax, or $5.2 billion, with a significant portion related to coal mining.2

$1.3 billion+: NSW forecast for 08/09 coal royalties [4]. $3.2 billion: QLD forecast for 08/09 coal royalties [5].

Coal royalties are also a critical source of revenue for the governments of Queensland and New South Wales, Australia’s principle black coal producing regions.

In recent years, State Governments have significantly increased coal royalty rates. This has added unexpected new costs to Australian coal miners, and greater uncertainty in an industry where new projects involve long-term commitments and multi-billion dollar investments. Adding to this uncertainty, the Commonwealth Government’s proposed emissions trading scheme is likely to reduce the industry’s ability to compete internationally. Few if any of the Australian coal industry’s market competitors are expected to have similar emissions taxes in the next 15 years.

1 Sydney Morning Herald, 12/11/2008
2 Survey for 2006-07, Minerals Council of Australia
3 QLD Dept. of Treasury, Sept 08, from Queensland Budget Strategy and Outlook

 

 
 

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