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Category: Budget / State Parliament / Mining Industry

Queensland coffers to suffer $3b mining royalty hit, Treasurer says

Tuesday, 7 Jun 2016 10:23:26 | Nick Wiggins

Australian currency - dollars and cents (ABC News: Gary Rivett)

Lower than expected mining royalties and taxes will deliver a $3 billion hit to revenue in next week's Queensland budget, Treasurer Curtis Pitt says.

Treasurer Curtis Pitt said he expects mining royalties to be $2.7 billion less than had been forecast six months ago.

State taxes are expected to be $350 million lower than in the mid-year budget update.

"Three billion is a significant writedown over the forward estimates and what we've seen is the deterioration since the last budget has been more than $4 billion," Mr Pitt said.

"This is a situation we don't want to see reoccurring each and every year."

Mr Pitt said the results were largely due to the mining downturn.

"Right now the market is fairly stagnant, the outlook for some of global trading partners in terms of their operations and building programs are not strong as well, so they've got a pretty weak outlook," he said.

He would not say whether the writedown would force the Government to abandon its planned budget surplus.

The Government has been forecasting operating surpluses of more than $1 billion for the next four years.

Mr Pitt said any changes to the surplus forecast would be revealed in next week's budget.

He said Queensland was forced to deal with the Federal Government's move to reduce Natural Disaster Relief and Recovery Arrangements (NDRRA) funding.

"What I will say is that the situation that has been put upon us by the Federal Government with regards to NDRRA reprofiling where they've taken more than $1.2 billion out of the 2015–16 year certainly is not helpful," he said.

"Last budget we forecast surpluses across the forward estimates, at mid-year review we also forecast that we would see surpluses across the forward estimates."

Mr Pitt said the Government would not be increasing borrowings in the budget.

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