New South Wales Premier Barry O’Farrell has hinted that he may consider a royalties hike, similar to that of Western Australia.

 

Mr O’Farrell has refused to rule out making adjustments to the state royalty scheme, which would see the Federal Government forced to compensate mining companies affected by any increase in royalty payments.

 

The NSW Government currently expects to reap $6.8 billion over the next four years according to an article published in The Australian, with the rate currently set at between 6.2 and 8.2 per cent depending on the size of the operation. 

 

Currently 95% of NSW's mining royalties come from the state’s coal operations.

 

The move, which would emulate WA’s hike, could result in the Federal Government reducing the state’s GST stake.