Queensland budget handed over by treasurer Cameron Dick, health the big winner with rising coal royalties

Record coal prices will see mining companies face an increase in royalty rates as the Queensland government announces major spending on the health system in the state budget.

By submitting his third budget today, Treasurer Cameron Dick also revealed that large companies would be hit by a mental health tax on payroll tax, while funds have been set aside to build new, previously announced, hospitals in Bundaberg, Toowoomba and Coomera.

“Every year the health budget grows,” Mr Dick said.

“But this year the increase is much more than just the usual.”

A profit will also be delivered at the end of this month, thanks to the temporary rise in coal and oil prices and a booming housing market.

The unexpected net operating profit – $ 1.9 billion for 2021/22 – is a big reversal from the deficit forecast six months ago in the December half-yearly budget update.

Sir. Dick announced that the state would be the first of four governments to run a deficit amid the COVID pandemic – the federal government, NSW, Victoria and Queensland – to deliver a profit.

But as the “factors settle,” profits are expected to fall to a $ 1 billion deficit over the next two years before returning to a modest $ 137 million profit in 2024-25 and $ 183 million in 2025-26.

Net debt – the target of what the government owes, minus its financial assets – is expected to double over the next four years, from $ 19.7 billion in 2022-23 to $ 39.2 billion in 2025-26.

But that figure is still $ 11 billion lower than what the 2020-21 budget had anticipated for 2023-24, with budget papers calling it a “significantly improved net debt position.”

Cameron Dick talks to Annastacia Palaszczuk next door.
Treasurer Cameron Dick and Premier Annastacia Palaszczuk are holding a media conference to discuss the budget. (ABC News: Edward Gill)

New progressive royalty scheme for coal mining companies

With a 10-year freeze on coal royalties expiring at the end of the month, Mr Dick said it was time for new schemes to be introduced, amid record prices.

From July, three new progressive royalty levels will be introduced:

  • 20 percent for prices over $ 175 per person. ton
  • 30 percent for prices over $ 225 per. ton
  • 40 percent for prices over $ 300 per person. ton

These changes are expected to provide “an additional $ 1.2 billion in royalties over future estimates,” Mr Dick said.

“All the $ 1.2 billion and more will go to the Queensland region,” he said.

There will also be a mental health charge – a move expected to generate $ 425 million each year by 2026 – to “provide a sustainable and sustainable source of funding to help Queenslanders in need”.

Tax for large companies

From January, large corporations with national salaries of more than $ 10 million will have to pay a tax of 2.5 cents for every $ 10 in taxable wages they pay over $ 10 million from January 2023.

Companies with national salaries of more than $ 100 million – like large supermarkets – will pay an additional five cents tax for every $ 10 in taxable wages they pay over $ 100 million.

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