The State Government has announced an overhaul of the coal royalties scheme that Hunter Valley mine operators have to pay.
From July 1 next year the amount of the tax charged will increase by two-point-six percent….resulting in an extra two-point-eight billion dollars in revenue into the state’s coffers.
It will replace the emergency domestic coal cap and reservation measures the previous government introduced in December 2022.
Treasurer Daniel Mookhey said coal royalties have not increased since January 2009.
“Since then, international prices have surged, peaking well above $500 per tonne in late 2022 as a result of Russia’s invasion of Ukraine,” he said.
International prices have since remained above average, trading consistently above $200 per tonne.
Existing discounts for underground and deep underground mining (deeper than 400 metres) will continue.
“The decision also mitigates a $1.3 billion write-down in royalties revenue in the forthcoming Budget,” Mr Mookhey added.
“The Government will use the funds raised rebuilding the state’s essential services, as well as providing families with cost-of-living relief,” he said.
“Rebuilding the state’s essential services means turning around the challenges left by the previous Liberal Government, including:
$7 billion of unfunded programs, including 1112 nursing positions and a shortfall in the state’s out-of-home-care program for state wards and foster children;
– A housing supply and affordability crisis;
– Ensuring there are sufficient teachers in schools and health services professionals in hospitals; and
– Reversing the damaging effects of the previous Liberal government’s destructive wages cap, which has led to chronic staff shortages in key public services.”