Queensland's debate over coal royalties has intensified after Katter's Australian Party (KAP) leader Robbie Katter vowed to campaign for changes to the state's current royalty system, creating fresh political pressure on the Crisafulli Government. The Traeger MP argues that while mining companies should continue paying royalties to Queenslanders, the current royalty rates are too high and risk discouraging future investment in one of the state's most important industries.

Coal mining remains a major contributor to Queensland's economy, particularly in regional areas such as Mackay, Isaac, Central Highlands and the Bowen Basin. The industry supports thousands of direct and indirect jobs while generating billions of dollars in export revenue each year. Royalties collected from mining companies also provide significant funding for public services, infrastructure, hospitals, schools and community projects across Queensland.

Robbie Katter said the royalty structure introduced by the previous Labor Government and retained by the current Liberal National Party Government represents an "extreme overreach." Although he supports the concept of coal royalties, he believes the current system reduces Queensland's competitiveness and discourages companies from committing to new mining developments. He has indicated he will bring proposals before Parliament to encourage broader debate on the issue, although he has not specified what royalty rate he would prefer.

Katter pointed to recent developments within the mining sector, including the sale of Anglo American's Queensland steelmaking coal assets, as evidence that investor confidence is being challenged. He argued that Queensland must remain attractive for long-term mining investment if regional economies are to continue growing and creating employment opportunities.

Industry representatives have echoed some of these concerns. Resource Industry Network General Manager Dean Kirkwood said uncertainty surrounding investment is beginning to affect regional communities. According to industry leaders, reduced investment does not only impact mining companies but also contractors, transport operators, engineering firms, hospitality businesses, sporting clubs, charities and local economies that depend heavily on the resources sector.

Despite the criticism, the Queensland Government has reaffirmed its commitment to maintaining the existing royalty framework. Housing Minister Sam O'Connor said the government remains focused on balancing support for the mining industry with ensuring Queenslanders receive a fair return from the state's natural resources. Natural Resources and Mines Minister Dale Last also stated that Queensland remains "open for business" and confirmed there are currently no plans to change the state's coal royalty system.

Regional leaders continue to emphasise the importance of mining to local economies. Mackay Mayor Greg Williamson has previously noted that approximately half of the Mackay region's economic output is linked to the resources sector. Industry groups have also warned that uncertainty surrounding royalties could contribute to lower business investment and reduced economic activity in mining communities.

The issue is expected to remain a key political and economic debate throughout 2026, with supporters arguing that lower royalties could encourage investment and job creation, while others maintain that current royalty revenues are essential for funding public services across Queensland. As Parliament prepares to consider future policy proposals, coal royalties are likely to remain one of the state's most closely watched economic issues.