10 May Passenger Movement Charge increase will see an extra $520M lost out of Travel Sector May 10, 2023 By Amanda Rixon Media Release 0 The Federal Government decision to generate an extra $520M over the 5 years from 2022/23 from a $10 hike in the Passenger Movement Charge (PMC) on every person leaving Australia is disappointing given the current state of the Travel Sector. Revenue generated through the lifting of the PMC to $70 on every departure will now hit $1.38B in 2024/25, $420M of which is spent on Border Management. This is a tax introduced to fund Border Security measures and Travel already more than pays its way. With the Travel Sector on the cusp of recovery post-COVID, and consumer and corporate appetite for travel already under pressure due to ongoing cost-of-living pressures, now is not the time for additional taxes especially in a Budget in surplus. Travel is still 30% down on pre-COVID levels. Rather than charging every person leaving Australia more, it makes more sense to support the recovery of the sector so that more people, both Australians and tourists, are travelling. About the Passenger Movement Charge (PMC) The departure tax was first introduced at a rate of $10.00, the PMC now sits at $60.00 which is a 500 per cent increase. At $60.00, it is one of the highest departure taxes in the developed world. Prior to the COVID-19 pandemic, the PMC was generating over $1.2 billion in tax revenue each year, which was considerably greater than the current expenditure on border management by the Department of Home Affairs, and the Department of Agriculture and Water. Our industry is supportive of strong biosecurity measures to protect our natural environment and core industries Quotes attributable to AFTA CEO Dean Long “Today’s decision to increase the PMC by 16% is extremely disappointing and will make it harder for Australians families to stay connected. We know that the PMC does reduce air capacity to Australia and with supply of air seat still tracking 30% to pre COVID levels this will slow down our recovery.” “In the three years prior to the pandemic, the PMC collected on average $811 million more than needed to fund the biosecurity requirements to keep the community and agriculture sector pest free. The Government is now demanding an additional $200m for next year which is unwarranted and not appropriate especially in the current environment.” “AFTA, TTF and AAA will be coordinating the Sector’s response and our efforts through the parliamentary review process to get the best possible outcome for our members, clients and the Sector at large.” [1] NOTE – this is expenditure on Home Affairs; Budget papers do not allow us to estimate spend on Agriculture/BioSecurity measures MEDIA CONTACT: LJ Loch 0488 038 555 lj.loch@afta.com.au Related Articles ATIA Highlights the Critical Role of Travel Advisors This Global Travel Advisor Day The Australian Travel Industry Association (ATIA) is using Global Travel Advisor Day (7 May 2025) to highlight the critical contribution accredited travel businesses and their incredible staff make every day to safer, smarter travel and championing their value as trusted professionals supporting millions of Australians. Travel has a new home – the Australian Travel Industry Association (ATIA) The Australian Travel Industry has a new peak industry body representing travel agents and advisors, tour operators, consolidators and wholesalers replacing the Australian Federation of Travel Agents (AFTA) effective today. ATIA and My First Job Launch “The Travel Gap” to Expand Travel Workforce The Australian Travel Industry Association (ATIA) has joined forces with My First Job, the innovative youth employment platform, to launch The Travel Gap, a new initiative designed to inspire and support school leavers in discovering exciting, real-world careers within Australia’s travel industry. Australians’ travel boom continues, with strong growth in Asia and the US Australians are continuing to embrace international travel, with the latest ATIA Travel Trends report revealing significant growth in outbound travel, particularly to Japan, Indonesia and the United States. ATIA Calls for Stronger Support for Travel Businesses in Federal Election With Australia’s airfares surging — up 13% nationally and as much as 95% on key routes — travellers are paying the price for a market dominated by just two airline groups controlling 98% of domestic passengers. Golden Age of Travel Agents: Industry Hits Back at Misleading KPMG Report The Australian Travel Industry Association (ATIA) has rejected claims in KPMG’s latest research report that the travel agent profession is in decline, describing the findings as misleading and disconnected from both real-time industry activity and government-backed projections. Showing 0 Comment Comments are closed.