{"id":667386,"date":"2026-05-13T03:42:13","date_gmt":"2026-05-13T03:42:13","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/667386\/"},"modified":"2026-05-13T03:42:13","modified_gmt":"2026-05-13T03:42:13","slug":"outbound-tax-rises-tourism-australia-funding-falls-air-travel-protection-grows","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/667386\/","title":{"rendered":"Outbound tax rises, Tourism Australia funding falls & air travel protection grows"},"content":{"rendered":"

Australia\u2019s travel, tourism, aviation and cruise sectors have reacted sharply to the 2026 Federal Budget handed down on Wednesday night, with much of the criticism focused on a $10 increase to the Passenger Movement Charge (PMC) and reduced funding for Tourism Australia.<\/p>\n

From 1 January 2027, the PMC will rise from $70 to $80, with the measure expected to raise $755 million over four years. It comes three years after the government increased the tax from $60 to $70<\/a>.<\/p>\n

\u201cMajor blow\u201d<\/p>\n

Australian Travel Industry Association (ATIA<\/a>) CEO Dean Long warned that \u201cwhile disappointing\u201d, the PMC increase would be acceptable if \u201cthe assurances ATIA has received to modernise the borders\u201d occur.\u00a0<\/p>\n

\u201cIf that doesn\u2019t happen, ATIA will have to hold the government to a blatant revenue grab,\u201d he said.<\/p>\n

\"ATIAATIA CEO Dean Long said the Federal Budget included \u201csome meaningful steps\u201d for travellers (Image Mark Harada)<\/p>\n

Cruise Lines International Association (CLIA) Australasia was more critical, calling the higher levy \u201canother burden on travellers\u201d.<\/p>\n

\u201cAustralia already charges travellers some of the highest fees in the world, increasing the cost of international travel and creating a disincentive for overseas visitors,\u201d CLIA said in a statement.<\/p>\n

The association added the increase was \u201cparticularly disappointing\u201d as cruise operators continued warning Australia was losing cruise business to competing regions.<\/p>\n

Tourism & Transport Forum (TTF) CEO Margy Osmond labelled the PMC rise a \u201cmajor blow\u201d for tourism operators and travellers.<\/p>\n

\u201cThis is an absolute shocker for the tourism industry. We\u2019re outraged that the government has decided to make travel even more expensive,\u201d she stated.<\/p>\n

\u201cThe government talks constantly about supporting tourism and growing visitation, yet tonight\u2019s Budget makes Australia more expensive to visit and more expensive for Australians to travel.\u201d<\/p>\n

\u25bc ADVERTISING \u25bc<\/p>\n<\/p>\n

\"TheThe PMC will grow another $10 from 1 January, the Federal Budget revealed<\/p>\n

She also criticised the lack of consultation before the measure was announced.<\/p>\n

\u201cFor a family of four, that\u2019s $320 they\u2019ll soon have to pay in tax as part of their airfare,\u201d she said.<\/p>\n

The Australian Airports Association (AAA) echoed concerns around affordability and competitiveness.<\/p>\n

AAA CEO Simon Westaway said increasing the PMC during ongoing global uncertainty and Middle East conflict pressures risked hurting price-sensitive travellers.<\/p>\n

\u201cAt a time when household budgets are already stretched, any increase to this passenger tax needs to be carefully considered,\u201d Westaway remarked.<\/p>\n

And if passengers are being asked to pay more, he said it is \u201cessential that the additional revenue is reinvested in tangible border upgrades rather than being absorbed into consolidated revenue\u201d.<\/p>\n

Specifically, the AAA renewed calls for the government to digitise Australia\u2019s paper incoming passenger card and to fast-track the implementation of seamless border technology ahead of the Brisbane 2032 Olympic and Paralympic Games.<\/p>\n

\"AThe Federal Budget was, as usual, a mixed bag for travel.
\nWhat\u2019s welcomed?<\/p>\n

Despite the criticism, parts of the Federal Budget were well received.<\/p>\n

For one, the AAA backed the government\u2019s $14.8 billion fuel security and price relief package, including expanded jet fuel reserves and consultation around a domestic Sustainable Aviation Fuel (SAF) industry.<\/p>\n

Westaway said the package could help strengthen Australia\u2019s aviation resilience during continuing global supply disruptions.<\/p>\n

The group also welcomed $38.1 million for the new Aviation Consumer Protection Authority and $4.5 million to extend the Australian Competition and Consumer Commission\u2019s (ACCC) Domestic Airline Monitoring program.<\/p>\n

\u201cThis extension of the ACCC Domestic Airline Monitoring report is a smart move and helps support a transparent, efficient and competitive aviation system in Australia,\u201d Westaway remarked.<\/p>\n

Mr Long also called the funding for aviation consumer protections and continued ACCC oversight of airline pricing \u201csome meaningful steps for the traveller experience\u201d.<\/p>\n

Tourism in trouble?
\n\"TheSome tourism leaders criticised the Federal Budget for not doing enough in an increasingly competitive market.<\/p>\n

Focusing on inbound travel, the Australian Tourism Export Council (ATEC) warned that reduced Tourism Australia funding would weaken Australia\u2019s position in an increasingly competitive inbound tourism market.<\/p>\n

ATEC managing director Peter Shelley said removing more than $50 million from Tourism Australia over four years sent \u201cthe wrong signal\u201d for a $40 billion export industry.<\/p>\n

\u201cReduced Tourism Australia funding risks Australia\u2019s ability to convert travellers in an increasingly cautious and price-sensitive long-haul travel environment,\u201d he stated.<\/p>\n

One positive outcome for tourism operators, however, is a $2 million, two-year extension of the Quality Tourism Framework (QTF).<\/p>\n

The Australian Tourism Industry Council (ATIC) said the funding would help another 1,000 businesses achieve sustainability, accessibility, and emissions-reduction standards.\u00a0<\/p>\n

ATIC CEO Erin McLeod said the program helped strengthen Australia\u2019s reputation as \u201ca high-quality, sustainable and welcoming destination for all visitors\u201d.<\/p>\n

Boomers abroad
\n\"DoThe Federal Budget had some good news for some older travellers. <\/p>\n

In good news for many older travellers, the government announced it will extend the full rate of the pension supplement from six to 12 weeks for pensioners travelling overseas. The treasury says the change will benefit around 92,000 Australian pensioners who currently travel abroad for more than six weeks each year.<\/p>\n

And the shift matters for the trade. Over-65s remain among Australia\u2019s highest-spending outbound travellers, and the existing six-week cliff has long shaped how advisors structure long-haul European itineraries for retired clients.<\/p>\n

Small business relief<\/p>\n

The Federal Budget also announced that two cornerstone small-business supports have been made permanent.<\/p>\n

As part of a $3.5 billion tax relief package, small businesses with aggregated turnover under $10 million will continue to immediately deduct eligible assets costing less than $20,000.\u00a0<\/p>\n

Treasury put the annual compliance savings at around $32 million. For travel agencies, the measure covers laptops, POS systems, signage, showroom fit-outs and similar capital purchases.<\/p>\n

KARRYON UNPACKS: The Federal Budget feels like a balancing act for travel. Industry welcomes consumer protections and fuel security, but higher departure taxes and reduced Tourism Australia funding risk making Australia harder to sell globally during an already uncertain travel climate for operators.<\/p>\n","protected":false},"excerpt":{"rendered":"Australia\u2019s travel, tourism, aviation and cruise sectors have reacted sharply to the 2026 Federal Budget handed down on…\n","protected":false},"author":2,"featured_media":667387,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[64,63,44],"class_list":["post-667386","post","type-post","status-publish","format-standard","has-post-thumbnail","category-australia","tag-au","tag-australia","tag-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/667386","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=667386"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/667386\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/667387"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=667386"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=667386"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=667386"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}