The Queensland Resources Council (QRC) has criticised the state’s 2025/26 Budget as a missed opportunity to implement long-term economic reform and restore investor confidence in the state’s critical resources sector.

QRC CEO Janette Hewson said while the resources industry had once again underpinned the government’s ability to fund public services and cost-of-living relief, the budget lacked meaningful policy changes to support the industry’s long-term contribution to the economy.

“The resources sector has underpinned Queensland’s economic prosperity and could continue to do so for decades to come,” said Hewson.

“Global demand for our resources remains strong, but only if the government can deliver a long-term plan for the state that encourages capital investment rather than simply using the sector to fund its debt short term.”

Royalties from the resources sector have fallen from A$12.8-billion last year to A$7.9-billion this year, reflecting lower coal prices and subdued investor sentiment — which the QRC says is “at an all-time low”. Despite the drop in revenue, the government confirmed it would maintain its current coal royalty structure through to 2028/29.

“It’s concerning to see the government extend current royalty rates in the forward estimates to 2028/29,” said Hewson. “This is a continuation of a bad policy that started with the previous Labor government and is being adopted by the new LNP government to the detriment of all Queenslanders.”

Queensland currently imposes the highest coal royalty rates in the world, which, combined with rising operational costs and global commodity price volatility, has placed pressure on miners operating in the state.

Hewson acknowledged recent efforts to streamline approvals and promote Queensland as “open for business”, but said supportive policies and a fairer tax regime were critical to regaining investor trust.

“Moves to streamline approvals and recent comments from the Queensland government about opening our state up for business have been welcomed by industry, but the groundwork must be laid with supporting policies and fairer taxation to regain investor confidence,” she said.

The QRC did, however, welcome several ongoing funding commitments in the budget, including support for the Queensland Minerals and Energy Academy to build a future skills pipeline, investment in the Common User Facility, the CopperString transmission project, and the Transforming Queensland Manufacturing Programme.

The Electricity Maintenance Guarantee and measures to boost critical minerals exploration were also viewed as positive steps, but insufficient in the absence of deeper structural reform.

“The budget reveals the extent of the economic challenges facing Queensland and the urgent need for a long-term economic plan,” said Hewson.

Queensland’s resources industry remains one of the largest contributors to the state’s economy, with coal, gas and critical minerals playing a central role in both domestic energy security and global decarbonisation supply chains.