Australian government to hike departure tax to $80 in 2026-27
Among all the major changes touted in the federal budget, the government increased an obscure fee on travelers leaving the country; The war in the Middle East has increased airfares and made international travel even more expensive.
In Tuesday’s federal budget, the Albanian government increased the Passenger Movement Charge for travelers leaving Australia, from the current level of $70 to $80 per person in 2027.
The move has drawn criticism from the airport lobby, which is concerned the government is spending more to slowly modernize Australia’s border system.
Australian Airports Association chief executive Simon Westaway said increasing the PMC would put further pressure on price-sensitive travelers in the cost of living crisis and harm Australia’s tourism competitiveness.
“At a time when household budgets are already stretched, any increase in this passenger tax needs to be carefully considered as it risks making overseas travel more expensive for ordinary families looking to holiday,” Westaway said.
“If travelers are being asked to pay more, it is important that the additional revenue is reinvested in concrete border improvements rather than spent on consolidated revenue,” he said.
Some passengers were also worried about the fare increase. Tokyo-based traveler “Mayu”, who visited Melbourne, said the increase in PMC is not good because flights are already expensive.
“If flights become too expensive, people won’t have as many chances to go abroad,” he said.
The PMC has been gradually increased since its inception in 1978, later known as the “exit tax”. The latest increase will go into effect on January 1.
According to Parliament, this was “initially introduced as a cost recovery measure to offset the cost of clearing customs, immigration and quarantine for travelers entering and exiting Australia, and the cost of issuing short-term visitor visas.” research in 2008.
But the fee has since “become at least partly a general revenue-raising measure.”
The fee, which has been turned into a fundraising tool, has long drawn attention in the industry as airports complain about the country’s cumbersome border process, marked by long queues, multiple checkpoints for passengers and the constant use of paper Arrival Passenger Cards.
AAA is asking the government to digitize the Arrivals Passenger Card, which has long been a source of unhappiness for both passengers and the aviation industry. The airport’s peak body described the digitization of the card as a “modest productivity investment”.
“The paper card is an outdated method of collecting information and gives the impression that Australia is lagging behind when it comes to new technology,” Westaway said.
Qantas is running digital passenger pass testing on its Sydney and Brisbane routes.
The higher Passenger Movement Charge will likely be passed on to passengers as a higher fee on tickets.
But Andrew Gillard of Melbourne-based Darebin Travel said the price increase paled in comparison to flight costs.
“Costs are rising and for a family of five [raised PMC] “It’s an extra expense, but it’s still only $50 more overall,” Gillard said. “And you might have a family paying $10,000 worth of air travel. “They won’t look at $50.”
Gillard notes that even at Australia’s $80 level, wages are still modest compared to wages seen elsewhere. For example, a flight from London to Australia may carry $199 in taxes.
But airlines, grappling with sharply rising fuel costs due to the effects of the Iran war, see the PMC increase as a further drag on international travel.
Peak body Airlines 4 ANZ argues that taxes and duties can make up more than 70 per cent of the total ticket price on some short-haul international routes, leaving little room to absorb further increases in passenger departure fees such as $320 for a family of four.
“This comes at a time when consumers are already facing significant cost pressures, including higher fuel prices,” said A4ANZ CEO Stephen Beckett.
Beckett described the PMC increase as “disappointing” and said it “ultimately means higher travel costs for Australians and visitors to our country.”
However, not everyone sees this increase as a problem. “In the big picture, what is $10 if you have to leave the country?” He said a passenger named Karen Hasset polled about the change.
Another passenger, who did not give his name, said he was “lucky enough” that $10 more wouldn’t make a difference to him.
“But I completely understand that not everyone is in this position.”
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