Australia’s Labor government is widely expected to lift the passenger movement charge from $70 to $80 per departing traveller in Tuesday’s federal budget. Aviation industry sources say airlines are preparing to pass the extra $10 straight onto customers through higher ticket prices.
The charge applies to passengers leaving Australia on international flights, so it hits both outbound tourists and returning residents. Industry bodies argue the timing of the increase is especially harsh, given travel costs have already surged post-pandemic.
Tourism and Transport Forum leadership says it will count itself lucky if a more aggressive rise does not appear on budget night. The organisation has slammed the flagged increase as unreasonable, pointing out the government has not committed to funnel the extra revenue into improving border infrastructure.
That absence of targeted investment worries tourism operators, who say travellers are being asked to pay more without seeing better facilities or faster processing. Airlines, already dealing with fuel costs and capacity constraints, see the higher charge as yet another headwind.
Sector groups warn the higher passenger movement charge risks dulling Australia’s competitiveness as a long-haul destination, particularly for cost-sensitive tourists and families. Some in the tourism and aviation sectors argue the government is using outbound travellers as an easy revenue source, rather than as partners in rebuilding the visitor economy.
The possibility of further increases in future budgets also hangs over airlines’ long-term pricing strategies and route planning. Many operators now watch Tuesday’s budget closely, hoping the final decision is less severe than feared.
