Prosper Australia Urges Modern Resource Tax Reform

A new report suggests Australia could gain $45 billion annually by updating its national resource tax framework.

Updated on Oct. 20, 2026 in Employment

Isometric editorial illustration showing a raw iron ore rock and industrial mining pipe, representing Australian resource extraction policy. — Prosper Australia released a report suggesting that modernizing the national resource tax framework could generate an additional $45 billion annually. AI Illustration. Upload story photo >

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Should governments increase royalty rates on mining companies when commodity prices and profits surge?

Released on 13 October 2026, a report from Prosper Australia argues the nation is losing $45 billion in potential annual revenue due to outdated resource tax structures. The group recommends adopting market-linked royalties to better capture profits during commodity price booms.

Why it matters

The report highlights a failure to collect higher revenues from mining and gas industries during peak price periods. Implementing these changes could significantly boost public funds by targeting the excess profits currently missed by existing tax models.

The report identifies a potential $28 billion annual increase from mining and $16 billion to $18 billion from petroleum. This comes as Queensland coal royalty rates reach 40 percent for prices exceeding $300 per tonne.

The players

Prosper Australia

This is an independent research organisation that focuses on tax reform and economic policy.

The details

Prosper Australia suggests that governments implement market-linked royalties that trigger higher rates when commodity prices exceed long-run norms. This model would combine a minimum royalty floor with a profit-sensitive component to ensure greater public return on resource wealth.

2021-22: Queensland operated 53 active coal mines.
1 July 2022: Queensland implemented its progressive coal royalty scheme.
2024-25: The state recorded 60 active coal mines.
2025: Some coal mine operators began reducing their workforces.
2025-26: The number of active coal mines in Queensland was 58.

Macro View

The proposal follows the framework established by the Queensland progressive coal royalty scheme, which marked a departure from previous 15 percent caps. By advocating for similar market-linked thresholds nationally, the report aims to align Australia with global resource taxation trends.

For the average resident, these tax reforms could influence government funding capacity for essential public services. Furthermore, changes to mining tax structures may impact regional employment security, particularly as Queensland coal employment remains steady at 26,000 workers.

The takeaway

Prosper Australia suggests that restructuring resource royalties to mirror market fluctuations could secure billions in additional annual revenue. Policymakers face the challenge of balancing this increased revenue potential against the volatility of global commodity markets.