Lifting coal royalties to generate billions of {dollars} in additional income will not do a lot to ease family energy payments, the NSW authorities has been suggested.
NSW nonetheless depends on coal for 60 per cent of its energy technology and Treasurer Daniel Mookhey says he’ll seek the advice of with business about the way forward for coal royalties past the expiry of a brief coal worth cap in July 2024.
An Australia Institute report exhibits NSW may have raised an additional $7 billion to $9 billion previously two years by adopting Queensland’s progressive coal royalty system.
Mr Mookhey mentioned the nation’s largest coal exporter needed to contemplate whether or not its flat-rate royalty system was fit-for-purpose.
“My view is that the people in NSW are entitled to a fair return for their resources,” he advised reporters on Thursday.
NSW expenses 8.2 per cent on the worth of open-cut coal, with barely decrease charges for underground mining and deductions allowed.
Queensland’s price-based system levies seven per cent when costs are as much as $100 per tonne, rising to 40 per cent when costs exceed $300 per tonne.
The NSW mining business, energy stations and unions can be requested in coming months about whether or not Queensland’s new tiered system was working as supposed.
The evaluate will even check preliminary recommendation that advised coal royalty fee modifications would have a “negligible to nil” impression on energy costs, the treasurer mentioned.
But Mr Mookhey drew a distinction with the Sunshine State, saying session with business and different events in NSW was important as a result of its 4 coal-fired energy stations have been in personal palms.
“We are having to undertake this comprehensive consultation process because the previous government privatised our power assets and told people that wouldn’t have any implications for power prices,” he mentioned
“Because we have privatised power, we have higher prices.”
The NSW mining foyer rapidly warned in opposition to altering a system that delivered document royalties to the state coffers final monetary yr.
“Going down the Queensland path … would be a massive economic mistake from NSW,” NSW Minerals Council chief government Stephen Galilee advised reporters on Thursday.
“They have introduced rates that are the highest in the world.
“It has resulted in a capital strike by the coal business … and it doubtlessly has resulted in 1000’s of job losses as effectively.”
Both NSW and Queensland capped coal at $125 a tonne for domestic use in December 2022.
It got here after the Russian invasion of Ukraine induced the value to surge past $500 a tonne.
Source: www.perthnow.com.au
