Coal royalties to increase for Hunter Valley mines

September 7, 2023 6:53 am in by
Treasurer Daniel Mookhey announced an increase in coal royalty payments from 1 July 2024. Image: Supplied NSW Government

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.

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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.

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“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.”