A third state tax has caused the Queensland Resources Council (QRC) to call on the State Government to rethink the changes.
Following last week’s decision to review how payroll tax is applied to general practice clinics, QRC chief executive Ian Macfarlane said it was time for the State government to rethink the decision to lift Queensland’s coal royalty tax to the highest rates in the world.
The decision has already forced the cancellation of billions of dollars of new resources projects in Queensland, including by major miner BHP, and there are concerns this is just the tip of the iceberg.
Macfarlane said the situation required urgent review by Premier Annastacia Palaszczuk and Treasurer Cameron Dick before more damage is done to Queensland’s reputation as a safe and reliable place to invest in resources projects.
“This short-sighted decision by the Government has placed at risk a $105 billion pipeline of future energy and resources projects in Queensland according to an independent report commissioned by QRC last year,” he said.
Macfarlane said the people of Queensland desperately need the State Government to look at the royalties issue with fresh eyes before more projects are cancelled.
“There is a lot on the line,” he said. “If we lose more projects, that is going to cost more jobs and that means less money flowing through the state economy.
“We need the Government to sit down with our industry, like it has done with the AMAQ (Australian Medical Association Queensland) and RACGP (Royal Australian College of General Practitioners) on the GP payroll tax issue, so it can get a better understanding of why this new tax is causing companies to pull back on investing in Queensland.
“The Government doesn’t seem to understand that imposing the world’s highest royalty tax rates on our coal producers is affecting future investment in all Queensland commodities, not just coal.
“This decision has jeopardised 450,000-plus Queensland jobs, thousands of businesses and the future of regional communities who rely on the continuing prosperity of our sector to survive.”