[et_pb_section fb_built=”1″ fullwidth=”on” _builder_version=”4.16″ global_colors_info=”{}”][et_pb_fullwidth_header title=”Rent-Controlled Resources” subhead=”Why are we under-charging Australia’s mining tenants?” button_one_text=”Read the Report” button_one_url=”https://dev.prosper.org.au/wp-content/uploads/2024/11/ProsperRentControlledRoyaltiesReportNov2024.pdf” background_overlay_color=”rgba(0,0,0,0)” admin_label=”Fullwidth Header” _builder_version=”4.27.0″ title_font=”|700||on|||||” title_text_color=”#ffffff” title_font_size=”42px” subhead_font=”||on||||||” subhead_font_size=”26px” background_image=”https://dev.prosper.org.au/wp-content/uploads/2024/11/Red-dirt-banner.png” parallax=”on” background_blend=”darken” custom_button_one=”on” button_one_text_color=”#FFFFFF” button_one_bg_color=”RGBA(255,255,255,0)” button_one_border_color=”#FFFFFF” hover_enabled=”0″ title_text_shadow_style=”preset3″ global_colors_info=”{}” sticky_enabled=”0″][/et_pb_fullwidth_header][/et_pb_section][et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”4.16″ global_colors_info=”{}”][et_pb_row column_structure=”3_4,1_4″ admin_label=”row” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” min_height=”1243px” custom_padding=”0px|||||” global_colors_info=”{}”][et_pb_column type=”3_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Text” _builder_version=”4.27.0″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”]
Prosper Australia’s Rent-Controlled Resources report examines Australia’s resource royalties. Australian states could capture an additional $14.5 billion in revenue each year by moving to a more flexible royalty model with variable rates that adjust to market conditions.
Key Points:
- Mineral rights are Crown property, belonging to all Australians.
- Royalties in their current form are an inflexible and inefficient method of pricing public property rights – like rent control for housing, they protect mining tenants from paying full market value.
- State governments, as resource managers, are giving Australia’s resource companies a cushy deal at the public’s expense.
- If Australia captured resource rents as effectively as Norway, governments could raise up to $66 billion more in revenue each year – enough to fund the abolition of payroll tax and stamp duty.
- A straightforward adjustment to royalty regimes, inspired by Queensland’s recent reforms, could yield an additional $14.5 billion per year by way of more commercially-oriented resource pricing.
Current royalty frameworks, which take a fixed share of the resource price regardless of profitability, fall short of delivering fair returns on Australia’s natural resources. Prosper Australia’s report suggests that a variable royalty approach that includes higher royalty rates during periods of increased market demand would better reflect the true value of resources sold – securing a more substantial revenue stream for states.
This pragmatic alternative to resource rent taxation could be enacted straight away without complex royalty redesign or rate-setting processes.
[/et_pb_text][et_pb_image src=”https://dev.prosper.org.au/wp-content/uploads/2024/11/fig-8.png” alt=”Four charts showing the difference between fixed and variable royalties over the past 20 years for coking coal, thermal coal, iron ore, LNG” title_text=”fig 8″ _builder_version=”4.27.0″ _module_preset=”default” global_colors_info=”{}”][/et_pb_image][et_pb_button button_url=”https://dev.prosper.org.au/wp-content/uploads/2024/11/ProsperRentControlledRoyaltiesReportNov2024.pdf” button_text=”READ THE REPORT” button_alignment=”center” admin_label=”Button” _builder_version=”4.27.0″ _module_preset=”default” custom_button=”on” button_text_color=”#D55C19″ button_on_hover=”off” hover_enabled=”0″ global_colors_info=”{}” button_text_color__hover_enabled=”on|desktop” button_text_color__hover=”#D55C19″ sticky_enabled=”0″][/et_pb_button][et_pb_text admin_label=”Text” _builder_version=”4.27.0″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”]
Properly pricing resources is a core part of the tax shift we need for a prosperous, equitable future. You can read more about our Tax Shift vision here.
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