Hi WW
Not sure what you mean - State royalties still go to the States. It's just that the Feds rebate the miners for the cost, so in effect the Feds are paying the State royalties, courtesy of the new RSPT funds gleaned from the miners. So nothing changes for the States, other than a significantly diminished outlook for new projects
What's the bet the portion that goes to the States will be progressively eroded, just like gst distributions.
The last great direct revenue source for the states, will then be stamp duty and land tax.
This will be another major step towards centralized govt. Whether that's a good thing or not, will depend on whether absolute power corrupts moreso.