DROP-OFF: A fall in coal royalties is expected .
DROP-OFF: A fall in coal royalties is expected . small smiles

QLD BUDGET: QRC accuses government of breaking promises

THE Government is expecting to take a billion-dollar hit on coal royalties but is increasing fees on LNG production.

Queensland Treasurer Jackie Trad announced in Tuesday's Budget that royalties on LNG and petroleum would increase to 12.5per cent, the sector's first increase in a decade.

Ms Trad said the pricing remained competitive, comparing it to royalties of about 30per cent internationally.

"To get that industry up and running there were a number of arrangements in place to stimulate investment in the industry - it's time for us to review them," Ms Trad said.

"We think it's time for that industry to do a bit more."

The Budget also estimated the Government would get $4.3billion from coal royalties this financial year, expected to drop to $3.4billion in 2020-21.

Queensland Resources Council CEO Ian Macfarlane said the royalty increase was a broken promise.

"Regional Queenslanders will be at a loss to understand how they can trust a Government that says one thing one week, and something completely different the next," he said.

"In Townsville two weeks ago the Premier said 'there will be no royalty increase in this year's budget'. Today we discover that's not the case."