Royalties explained

Queenslanders own the state’s mineral resources, including coal. Coal royalties are the monies paid by mining companies to the people of Queensland in exchange for the right to mine their coal. This ensures Queenslanders are compensated fairly from the earnings mining companies make from this valuable and limited resource.

The royalty rate for coal is determined based on the average price per tonne of coal sold, disposed of or used in a royalty return period.

Since mid-2021, the price of coal has risen greatly. In times of boom, we want to share the boom. It’s fair. It’s a return for all Queenslanders.

To ensure Queenslanders receive a fair return in periods of high prices, the government introduced three new tiers to the coal royalty structure for coal sold, disposed of or used on or after 1 July 2022.

The increased return to Queenslanders received during future periods of high prices will help enable the provision of essential infrastructure and services to meet the needs of Queenslanders across all regions of the state.

The addition of the new tiers is not expected to have any material impacts on the coal industry or viability of producers, given the increases are applied only at relatively high prices.

Visit the Queensland Revenue Office for more information about how royalties are calculated.

Last updated: 14 February 2024