Departure tax hike set to die in the Senate

“The Passenger Movement Charge Amendment Bill 2026 increases the cost of travelling out of Australia for any reason. So, whether you’re going to see loved ones, responding to a family emergency or just taking a well-earned break, this bill makes your flight more expensive,” said Greens transport spokesperson Elizabeth Watson-Brown.

“In a cost-of-living crisis, should this really be a government priority – taxing your family holiday and, meanwhile, letting the big gas corporations get away with not paying their fair share?

“That tells you so much about this government, which, time and again, chooses the interests of big business and the fossil fuel industry over everyday people. As it stands, this bill simply makes the cost-of-living challenge worse, and the Greens can’t support it in its current form.”

The Coalition, meanwhile, has labelled the bill a “desperate tax grab”, with Shadow Tourism Minister David Littleproud saying it would reduce incoming passengers and hurt the tourism industry.

“There is no why that they can demonstrate as to why they have lifted the passenger movement charge by 33 per cent in three years – that is a tax grab,” he said.

“I just say to this government, the men and women of this country that have had the courage of their own sweat and their own wallet to go and build tourist businesses and to have motels and cafes out here – they’re the human toll of this.

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“They’re the ones that will see 38,000 less people into our border in the short term, and 190,000 in the medium term.

“They are the people that will pay the price of this, all because [the government] have become desperate, have not been able to manage not only our borders but our economy.”

The tourism industry has been vocal about its opposition, with Tourism and Transport Forum (TTF) CEO Margy Osmond saying the planned increase is “without question” a tax on tourism.

“[It] adds yet another cost to international travel at a time when the industry is already facing significant external pressures, including high fuel costs, and rising operating expenses,” she said.

“Our industry has demonstrated extraordinary resilience, but resilience cannot be the policy response to every challenge our sector faces.

“Tourism businesses have worked incredibly hard to rebuild, invest and deliver exceptional experiences for visitors. We now need policy settings that support that work, not additional costs that make Australia less competitive.

“We need to set our industry up for success. Continually adding costs and hurdles to visiting Australia will only make an already long-haul destination less competitive and risk pushing potential visitors towards other countries.”

The Australian Travel Industry Association (ATIA) has also come out against the increase, with CEO Dean Long telling The Australian that both sides of politics have historically seen the PMC as “an easy cash grab that has no impact”.

“The Prime Minister led the charge against the passenger movement charge increase when the Coalition was in power and he was a shadow tourism minister, yet they have increased it when they won government,” he said.

“What we’re seeing now is the parliament itself is saying enough is enough. You can’t just keep increasing this tax because it puts us at a competitive disadvantage.”

The office of Home Affairs Minister Julian Hill has been contacted for comment.