Industry voices ‘outrage’ at new hike in departure tax

“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,” she said.

“The Government talks constantly about supporting tourism and growing visitation, yet tonight’s Budget makes Australia more expensive to visit and more expensive for Australians to travel.

“For a family of four, that’s $320 they’ll soon have to pay in tax as part of their airfare. Given how much uncertainty the industry is already facing, this could really be the straw that breaks the camel’s back.”

The industry has, for several years, been lobbying the government alongside the Australian Airports Association (AAA) to devote PMC funds to “modernising” the border.

“It’s particularly disappointing when we’ve worked so constructively with Government over the last 12 to18 months on developing a seamless border, which would give every Australian a better, safer, more secure experience,” said Osmond.

“Right now, we have airports around the country that are planning their own improvements and they need a signal in terms of how they spend their money.

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“It is urgent that we escalate the really solid work done over the last year by sections of the government with the industry and deliver a modern seamless border that so many other countries take for granted.”

In a statement, AAA chief executive Simon Westaway again urged the government to invest in the border, including digitising the Incoming Passenger Card, bolstering technology, adding more SmartGate kiosks, and boosting resources for Border Force.

According to Westaway, competing neighbours including New Zealand, Indonesia and Singapore are “already delivering a far better border experience than us”.

“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,” he said.

“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.

“In the first instance, we urge the government to digitise the paper Incoming Passenger Card as an app for overseas arrivals. This is a simple fix to a frustrating administrative process for anyone flying into Australia and would be a modest productivity investment towards a future seamless border.

“The paper card is an outdated method to gather information and gives the impression that Australia is falling behind on new technology.”

The PMC was last increased to $70 in 2023, and the TTF is urging the government to freeze the new rate for at least four years over the forward estimates.