NSW budget rakes in growing coal royalties

THE New South Wales government took an extra $111 million in coal mining royalties in 2018-19, bringing the total to $1.77 billion, the state budget revealed.
NSW budget rakes in growing coal royalties NSW budget rakes in growing coal royalties NSW budget rakes in growing coal royalties NSW budget rakes in growing coal royalties NSW budget rakes in growing coal royalties

NSW Minerals Council CEO Stephen Galilee.

NSW Minerals Council CEO Stephen Galilee said the budget demonstrated the importance of a strong mining sector to the NSW economy, with mining royalties at record levels and forecast to deliver the revenue needed to keep the NSW budget in surplus over the forward estimates to 2022-23.

 

He said while budget surpluses were expected to average $1.7 billion over the next four years, mining royalties were forecast to deliver nearly $8 billion, or an annual average of $1.97 billion over the same period, keeping the budget in surplus while helping to pay for record investment in infrastructure and services.

 

"Mining in NSW provides over 40,000 direct jobs, mostly in the regions, and the record royalty revenue being generated by a strong mining sector is making a big contribution to the NSW budget too," Galilee said.

 

Galilee said mining communities across NSW should also warmly welcome confirmation in the budget that Treasurer Dominic Perrottet kept the government's pre-election commitment to not increase royalty rates.

 

"Strong royalty revenue is being delivered without increasing royalty rates, unlike other states where royalty increases have been proposed," he said.

 

"Keeping this pre-election commitment will help to protect mining jobs across regional NSW and make NSW a more attractive destination for global mining investment."

 

The approval of more mining projects across the state will likely lead to increased royalty revenue, which will also deliver more long-term mining jobs for regional NSW.

 

"There are around 25 mining projects currently in the NSW planning system with the potential to create or protect thousands of jobs and generate billions more in royalty revenue for the people of NSW," Galilee said.

 

"Approving these projects would deliver significant benefits for mining communities, for the NSW budget and for the NSW economy more generally."