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Australia’s peak airports body has renewed calls for more revenue from passenger charges to be invested in “modernising” the border.
The Australian Airports Association (AAA), in a pre-budget submission, said that allocating an extra five per cent of revenue per year from the $70 Passenger Movement Charge (PMC), which raises more than $1.35 billion annually, could boost border and airport processing infrastructure.
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“The funding would come from an estimated $380 million a year in extra revenue by FY2030, generated through international passenger growth alone, with no increase to the PMC for passengers,” the AAA said.
“This would help cover the cost of vital government upgrades, such as additional SmartGate kiosks and digitising the incoming passenger card.”
It comes after the AAA released a survey last month which CEO Simon Westaway says showed 71 per cent of Australian travellers support digitising the IPC, while 78 per cent back “passportless” border processing.
“After a long international flight, passengers expect to clear the border efficiently, not spend an hour standing in queues wondering why systems cannot keep up,” he said.
“Many Australians are travelling through places like Bali or Singapore and getting a faster, more seamless border experience than they do at home. When our neighbours are offering a smoother arrival than Australia, it’s a clear signal we need to lift our game.
“Passengers are already paying this charge, and it is reasonable to expect that growth in this revenue is reinvested into the border experience to improve efficiency and productivity, rather than absorbed into consolidated revenue.”
Australia in December 2025 marked its busiest holiday travel peak in five years, with overall passenger numbers up 4.5 per cent year-on-year.
“The sheer volume of passengers moving through airports over December and January shows just how quickly international travel has rebounded and how much pressure that puts on border systems,” said Westaway.
“That’s why more investment now in modern, efficient border processing is so important. With millions of additional visitors expected ahead of the Brisbane 2032 Olympic and Paralympic Games, Australia’s borders must operate efficiently and reliably.”
The AAA has also joined the ACCC’s call to extend the competition watchdog’s airline monitoring scheme beyond its scheduled expiry this year, saying it would “reduce transparency across the aviation system at a time of ongoing capacity and reliability challenges”.
“It’s clear that airline monitoring has improved visibility of competition and consumer outcomes, and that transparency should not simply switch off in 2026,” said Westaway.
