The Andrews Labor Government is taking action to ensure Victorians get a fair return for the use of our state’s natural resources.

Victoria’s coal royalty rate has not changed for over a decade, and it’s time to bring Victoria into line with other states, including New South Wales, Queensland and Western Australia.

The 2016/17 Victorian Budget will increase the brown coal royalty rate three-fold from 1 January next year, raising $252 million over the forward estimates.

Power companies can easily absorb this change, and there is no reason for it to be passed onto consumers. The Government will brief the Essential Services Commission accordingly.

Victoria has and will continue to have the lowest cost of energy production in Australia.

Victoria also has the cheapest household electricity prices in Australia according to the Australian Energy Market Commission – and this change will not affect that.

The royalty is paid for access, use and extraction of a resource the mine operator manages on behalf of the community and this increase will ensure Victorians are being paid their fair share.

Quotes attributable to Treasurer Tim Pallas

“We are ensuring Victorians get a fair return for the use of our state’s natural resources.”

“The royalty rate has not changed in a decade, and this will simply bring Victoria into line with the other states.”

“Victoria has and will continue to have the lowest cost of energy production in Australia. “

“Power companies can easily absorb this change, and there is no reason for it to be passed onto consumers. The Government will brief the Essential Services Commission accordingly.”