At a time when coal and gas prices have temporarily risen due to the war in Ukraine, the community should reap benefits from the sale of fossil fuels extracted from our state to invest in clean and affordable energy and help coal dependent communities transition to green industries. But unlike Queensland, coal royalties in NSW don’t rise with the price of coal and the state is failing to profit much from the unexpected coal boom.

Coal royalties in New South Wales have stayed at 2.6 percent of coal revenue since 2008 and will only rise next year to up to 8.2 percent depending on the type of mining. Queensland moved from three bracket royalty rates to six brackets, reaching 40 percent when the price rises to $300 a tonne or more. If New South Wales had adopted these rates last financial year, we would have raised an additional $2.8 billion.

The state’s coal belongs to the people and the rise in coal prices should help us address challenges like climate change, not just line the pockets of multinational mining companies. In Parliament I called on the government to adopt similar coal royalty rates as Queensland > HERE.

Read the Australia Institute report that details the lost revenue and opportunities > HERE.