Where do the royalties go?

From resources to real-world services.

In 2024–25, resource companies paid more than $7.9 billion to the Queensland Government in royalties and taxes. These funds form a crucial part of the Queensland budget and significant revenue. Royalties support the delivery of frontline services such as healthcare, education, law enforcement, roads, and public transport.

Royalties also support cost-of-living measures, housing programs and community services that would otherwise have to be funded through higher taxes, more debt, or cuts elsewhere. The flow-on effect is enormous: royalty stability helps governments plan long-term, invest in upgrades, and maintain essential services across the whole state.

Put simply, without the resources sector, Queensland’s budget would be significantly smaller, its services weaker, and its capacity to invest in communities far more limited. These contributions don’t just add to the budget - they help keep the entire state running.

Royalties help pay for the things Queenslanders use every day.

  • Hospitals and Health.

    more staff, more clinics, better medical equipment

  • Schools and Skills.

    stronger classrooms, TAFE upgrades, more training programs

  • Roads and Infrastructure.

    safer, more reliable roads and public transport

  • Law Enforcement and Emergency Services.

    enhanced police, fire, and SES capability

Myth busters.

Myth:

“Big mining companies don’t pay tax.”

Fact:

Mining companies pay corporate taxes as well as royalties to the Queensland Government. For the 2023–24 financial year, the mining and resources sector paid $59.4 billion in tax and royalties and was noted by the ATO as the nation's biggest taxpayer. For example, one of Australia’s largest mining companies, BHP, reported that its Queensland coal operations faced an adjusted effective tax rate (income tax plus royalties) of about 62% in FY24. That means for every $100 of profit (after adjusting for exceptions), roughly $62 is paid as tax/royalties in Queensland alone.

Myth:

“Royalties can't be that much of an issue if companies are still investing in Queensland mines.”

Fact:

We want Queensland to be the first place to invest in resources in Australia and the region. But our royalty rates are unsustainable and harming the coal sector and investor confidence in Queensland. The sector shrank by $9.6 billion last financial year, with coal jobs down 24% between 2022 and May 2025 and more than 1000 coal worker jobs lost since. Last year, spending with local businesses and the community fell $3.2 billion in the Mackay and Fitzroy regions alone. Coal companies will continue having to make tough decisions while unfair royalty rates are in place. Investment decisions for mines operating today were made decades ago and less investment decisions today means fewer jobs and opportunities for Queensland’s future.

Myth:

“Coal companies aren't giving Queenslanders a fair return on their resources and need to step up and pay their way.”

Fact:

The industry has always supported and paid its fair share of royalties, but the current rates are just too high and out of step with global competitors. There won’t be fair returns flowing back to the state in the future if the industry continues to struggle. A more balanced system with fairer rates and fairer returns for regions, would still deliver strong returns while supporting long-term industry viability and community benefits. We want to work with the Government to strike a balance that delivers strong returns for Queenslanders and keeps Queensland’s resources sector competitive.

Myth:

"Resources companies avoid paying royalties."

Fact:

Resources companies have always acknowledged that Queensland’s natural resources belong to its people and are committed to sharing the benefits through a fair and balanced royalties system.

Myth:

“Companies pay more when coal prices are high and less when the coal price drops – that sounds like a fair system?”

Fact:

The industry supports paying fair royalty rates, which it has done for decades, but current rates are simply too high compared to other states and countries. The tiered system also does not consider the currency exchange rate between $U.S. and $AU dollars as coal is usually sold in U.S. dollars. Producers have been regularly triggering maximum royalty rates of 40% since December 2025. The current system also does not take into account rising inflation. For Queensland to be competitive and truly open for business, we need a royalties policy that reflects market conditions and shifting geo-political risks. If we don’t have viable operations and new investments, royalties for public services could run dry without a healthy sector and new investment.

Myth:

“Coal royalties alone can’t be solely to blame for all the coal sector’s challenges because there’s a lot of factors at play.”

Fact:

Many factors do impact the investability, longevity and profitability of operations. Things like coal prices, exchange rates to capital availability, business costs, regulations, weather, global commodity demands and geopolitical risks. At a time when the industry is facing severe inflationary pressures to production costs, punitive royalty rates only reduce investment and do nothing to boost supply needed to support Australia’s energy security and export potential. Current rates significantly reduce our competitiveness and the appeal of our coal and resources sector. 

Myth:

“Coal royalties have always been this way, there's no reason to change them now.”

Fact:

Now more than ever, Queensland resources and coal is crucial to the resiliency of our state for energy security and export potential. The industry supports paying its fair share of royalties, but believes the current rates are too high and out of step with global competitors. Excessively high royalties have damaged our global investment reputation are harming future coal and broader resource investment, reducing jobs and weakening regional economies over time. These rates are risking the future of the sector, reliable royalty streams for public services, good jobs and local businesses, futures in regional towns and the prosperity of future generations. A more balanced system with fairer rates and fairer returns for regions, would still deliver strong returns while supporting long-term industry viability and community benefits.

 

Learn more.

Figures use total and direct contributions for 2024-25, based on economic modelling by Lawrence Consulting. Learn more about the methodology here.

Royalties stated on this website are from the Queensland Government Office of State Revenue for the 2024-25 financial year.