Australians and international visitors will pay more to leave the country after the Federal Labor government announced an increase to the Passenger Movement Charge (PMC).
The tax, which is charged on people departing the country and collected through airline tickets, will spike by $10 from $70 to $80 from Jan 1, 2027.
“The government will increase the Passenger Movement Charge from Jan. 1, 2027 by $10 from $70 to $80 per passenger,” Budget Paper No. 2 states (pdf).
The increase has drawn criticism from tourism and airport industry groups, which say it will add further pressure to travellers already facing higher airfare costs.
Tourism and Transport Forum Chief Executive Margy Osmond described the increase as an damaging for the tourism industry.
“We’re outraged that the government has decided to make travel even more expensive when operators are already under enormous pressure from the ongoing fuel crisis and surging operating costs,” Osmond said.
“The government talks constantly about supporting tourism and growing visitation, yet tonight’s Budget makes Australia more expensive to visit and to travel.”
$320 Cost for A Family of Four
Osmond said a family of four would pay $320 in departure taxes as part of the cost of overseas travel.
“Given how much uncertainty the industry is already facing, this could really be the straw that breaks the camel’s back,” she said.
She also questioned whether revenue raised through the charge was being reinvested into tourism.
“It’s inconceivable that none of the extra revenue that’s going to be collected from this tax hike looks set to fund the urgent border modernisation we have been calling for,” she said.
Industry Raises Border Upgrade Concerns
The Australian Airports Association also criticised the increase, arguing passengers were being asked to pay more without significant improvements to border processing systems.
Chief Executive Simon Westaway said the higher charge would put further pressure on price sensitive travellers during a difficult economic period.
“At a time when household budgets are already stretched, any increase to this passenger tax needs to be carefully considered because it risks making overseas travel more expensive for regular families wanting to take a holiday,” Westaway said (pdf).
“If passengers are being asked to pay more, it is essential that the additional revenue is reinvested in tangible border upgrades rather than being absorbed into consolidated revenue.”
He urged the government to digitalise the incoming passenger card for overseas arrivals.
“The paper card is an outdated method to gather information and gives the impression that Australia is falling behind on new technology,” he said.
The change comes at a time rising jet fuel prices continue to push up the cost of flights.
Qantas announced in April that they had taken action to mitigate the impact of the conflict in the Middle East, including fare increases.
