Mining companies have been warned to expect pain in next month's Queensland budget, as the government addresses a drop off in mining royalties.
State Treasurer Tim Nicholls says Queensland has limited options to increase revenue from taxes and charges, as it strives to save $4 billion over the next three years.
"One of those obviously is state royalties, the price we get paid for coal or gas pulled out of the ground. That is one area," he told ABC radio today.
Mr Nicholls said royalty returns had fallen and the government was going to have to decide what to do about it.
"It's likely that the royalty return to the state will be less than otherwise would have been anticipated," he said.
"We're going to have to make some decisions about it.
"The fiscal repair task requires contributions from all parts of the economy and all parts of the community."
Mr Nicholls also named gambling taxes as another area the government will consider to increase its tax take.
He said he was looking forward to handing down the budget because it would help Queenslanders understand the need for public sector job cuts, and other savings drives.
He said incorrect and speculative leaks from within the public service had frustrated the government, and the budget would help present the true picture.
"The budget will outline in total what our plan is," he said.
"And then we'll be in a position to be able to go out and explain to people, on the back of that budget, why it is we're doing what we're doing and clearly, what the benefits will be in the future."
He said the government's fiscal repair program was about being able to employ more people in 18 months' time, and deliver affordable services into the future.
Mr Nicholls later told reporters public sector job cuts were necessary, but an increase in revenue would help limit them.
"The more revenue we raise obviously the fewer people that are likely needed to be let go," he said.
The government argues Queensland has 20,000 more public servants than it can afford.
BHP Billiton has warned it may have to cut jobs at its Australian coal mines as the company faces a deteriorating market, including slowing industrial activity in China.