LNG royalties to advance education
The Queensland Government is planning to implement nest egg legislation that will see Queensland children born after July 1, 2012 earn a trust fund valued between $7800 and $9500 by the time they turn 18.
The State Government released its From Mines to Minds: A proposal to establish a Queensland Education Trust report paper, in which the government proposes a multi-billion dollar Queensland Education Trust (QET). The trust plans to use 50 per cent of future LNG royalties, projected to worth over $1.8 billion over the next decade.
The Government’s proposed trust could be invested in different ways including;
- Individual Trust Accounts for Education – an individual endowment that would mean every newborn child would have a nest egg valued between $7800 and $9500 when they turn 18 or;
- Dedicated Education Fund: an investment fund where the proceeds are reinvested by Government in education and training initiatives beyond the basics throughout the schooling years and potentially beyond.
Premier Anna Bligh said under the Trust account model every Queensland child born on or after July 1, 2012 would receive a savings endowment at birth that could be accessed at age 18.
“This would consist of an initial deposit of $500 at birth followed by a further contribution of around $3,200 in the year they enter Prep when the first royalties from the LNG industry will begin to flow,” said the Premier.
Under the planned QET model would set aside funds for specific initiatives such as;
- TAFE and university scholarships for rural, regional and disadvantaged students
- International exchange programs
- Language programs