Queensland Treasurer Jackie Trad says it is time for the gas industry to pay more.

The Government has lifted gas royalties from 10 per cent to 12.5 per cent from July 1 to raise $476 million over four years to plug revenue shortfalls elsewhere.

Mining lobbies say it will make Queensland gas royalties the highest in Australia, putting jobs and future investment at risk.

But Ms Trad says the Labor administration had been hugely supportive of the growing industry, and it is now time to pay up.

“There has been a ten per cent royalty rate on the gas sector for the past ten years. It was a competitive royalty rate because it was a new, fledgling industry,” she said.

“Now it is very much established. It is very much growing at a rapid rate and now is the time for it to pay a bit more to the people of Queensland.”

The industry was given no warning of the hike prior to the 2019/20 budget announcement.