Resources and gambling companies have been told to “pull their head in” and not expect public sympathy after taking high-profile actions to resist recent tax increases by the Queensland government.
BHP’s chief executive, Mike Henry, last week said the mining giant would pause plans for its Blackwater South coalmine because of the state’s new royalty regime, unveiled as part of the June budget.
Henry said the royalty changes “didn’t involve any engagement with industry” and increased risk for the company in Queensland.
The move came amid windfall profits for BHP and despite the fact the company sought environmental approval from the federal government for the mine on 8 June, after the Queensland government had already flagged it was on the verge of increasing royalties. The mine is not expected to open before 2029.
Ian Macfarlane, the chief executive of the Queensland Resources Council, met with the state treasurer, Cameron Dick, on 26 May to discuss the likelihood of coal royalties being increased after the expiry of a 10-year freeze.
Queensland Conservation Council’s director, Dave Copeman, said it was only fair mining companies paid a reasonable amount of taxes after a decade without rises to coal royalties.
“I think the resources companies need to pull their head in,” he said.
“They can’t be out in the community spruiking all of the benefits [of mining], and then when it comes to actually paying their fair share of tax, go to war.
“That hypocrisy is the reason why I don’t see the Queensland government backing down on this.”
The state has also faced intense pressure from online wagering companies in recent weeks over an increase in the betting tax.
Ladbrokes deprioritised Queensland horse races from its mobile apps and axed a $7.5m Brisbane Broncos sponsorship in response to the government’s plan to raise an additional $80m for the state’s racing industry via increased betting taxes. Sportsbet also pushed down the state’s races on its app – a move it has since reversed after making a deal with Racing Queensland.
John Quiggin, a laureate fellow in economics at the University of Queensland, said he did not expect the mining or gambling industries to receive a great deal of public sympathy over the taxes.
“The answer really is someone has to pay,” Quiggin said.
“What you have is, on the one hand the mining industry that’s doing spectacularly well … and on the other hand the gambling industry which largely relies on government toleration to get the money it does.”
Tim Costello, an advocate from the Alliance for Gambling Reform, said it was not surprising to see bookmakers push back against the tax increases.
“We’ve been very blind to the political muscle and state capture by gambling interests here in Australia,” Costello said. “They have transformed their wealth into political power.”
A spokesperson for the treasurer said the state government would proceed with the revenue changes, which were “made in the interest of all Queenslanders”.
The spokesperson noted changes to the royalties were passed in state parliament with no opposition.
“They are designed to ensure companies operating in Queensland pay their fair share and that Queenslanders get their fair share,” the spokesperson said.
Macfarlane said on Sunday the hike in coal royalties was an “astronomical increase” and that companies were only given a few weeks’ notice of the plan.
Guardian Australia has contacted BHP, Sportsbet and Ladbrokes for comment.
• In Australia, the crisis support service Lifeline is 13 11 14. Gambling Help Online is available on 1800 858 858 and the National Debt Helpline is at 1800 007 007
