The state government’s revenue for the current financial year is estimated to be $40.6 billion, up $918 million from the previous forecast because of a better-than-expected recovery in coal prices and more GST revenue.

As part of the “significant variations” from the 2009-10 budget estimates, the state Treasury said it would receive a $596 million increase in GST revenue.

While coal royalties are estimated to bring in $1.62 billion for 2009-10, well down on the $3.1 billion realised in the previous financial year, the Treasury is forecasting a 71% gain to $2.77 billion in 2010-11.

When including land rents and other resources royalties, the total forecast is for $3.24 billion of this type of revenue for the upcoming financial year, a 63% improvement from 2009-10.

“This says two things,” QRC chief executive Michael Roche said.

“First, that the resources sector is paying its fair share to the real owners of the state’s resources – the people of Queensland.

“Secondly, the royalty regime in Queensland is responsive to price movements.

“In other words, if the price received for a Queensland mineral commodity such as coal or copper rises, so does the royalty paid to taxpayers.

“It’s not a clumsy, tonnage-based system as some in the federal government would suggest.”

He said that, over the next four years, Treasury was forecasting that minerals and energy companies in the state would pay Queensland taxpayers almost $13 billion free and clear of wages, salaries, infrastructure, community support programs and corporate taxes to the federal government.

“Importantly, the people of Queensland get the lion’s share of this dividend, as they are entitled under the Australian constitution.”

With his last comment, Roche touched on the issue of the legality of the proposed RSPT as the constitution limits Commonwealth government taxation over the property of the states, which includes mineral resources.

However, legal experts expect a state government court challenge to be unsuccessful, with only the Western Australian government considering this option.

Despite higher revenue expectations, the Queensland government is still forecasting a net operating deficit of $1.75 billion for 2010-11, but this is an improvement on the $3.14 billion expected for this period back in December.

The state government remains committed to regaining its AAA credit rating through $15 billion of public asset sales, notably including the privatisation of Queensland Rail.