{"id":669182,"date":"2026-05-13T23:11:15","date_gmt":"2026-05-13T23:11:15","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/669182\/"},"modified":"2026-05-13T23:11:15","modified_gmt":"2026-05-13T23:11:15","slug":"outrage-over-hike-to-overseas-travel-taxes-set-to-hit-australian-tourism-operators-and-holidaymakers","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/669182\/","title":{"rendered":"Outrage over hike to overseas travel taxes set to hit Australian tourism operators and holidaymakers"},"content":{"rendered":"

People travelling out of Australia are set to be slugged with a new tax hike<\/a> announced in last night\u2019s federal budget, making overseas holidays even more expensive.<\/p>\n

It will also increase return travel costs for tourists travelling to Australia.<\/p>\n

The Tourism<\/a> and Transport Forum said the federal government had \u201cblindsided\u201d Australia\u2019s travel and tourism industry with the decision to increase to the passenger movement charge (PMC) in the budget.<\/p>\n

Know the news with the 7NEWS app: Download today Arrow<\/a><\/p>\n

The PMC is a fee charged to anyone departing Australia by plane or cruise ship<\/a> and is usually added to and included in the fare.<\/p>\n

TTF CEO Margy Osmond slammed the decision to increase the PMC from $70 to $80 per person as a \u201cmajor blow\u201d to the tourism sector.<\/p>\n

\u201cThis is an absolute shocker for the tourism industry,\u201d Osmond said.<\/p>\n

\u201cWe\u2019re outraged the government has decided to make travel even more expensive<\/a>, when operators are already under enormous pressure from the ongoing fuel crisis and surging operating costs.<\/p>\n

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

Osmond said the increased fee means a family of four will soon need to pay $320 just in tax as part of their airfare from Australia.<\/p>\n

\u201cGiven how much uncertainty the industry is already facing, this could really be the straw that breaks the camel\u2019s back,\u201d she said.<\/p>\n

\"PeoplePeople travelling out of Australia are set to be slugged with a new tax hike. Credit: AAP<\/p>\n

The increase, due to take effect from January 1, 2027, is said to have caused \u201cdeep frustration\u201d with tourism industry bodies who say there were not consulted before it was announced.<\/p>\n

The last time the fee was charged was in 2024, when it rose from $60 \u2014 which it had risen to in 2017.<\/p>\n

Osmond said the six-month transition period reflected the government\u2019s recognition of how seriously the increase will impact the industry \u2014 without any indication the increase in revenue would be used to benefit the industry.<\/p>\n

\u201cIt\u2019s inconceivable that none of the extra revenue that\u2019s going to be collected from this tax hike looks set to fund the urgent border modernisation we have been calling for,\u201d she said.<\/p>\n

\u201cIt\u2019s particularly disappointing when we\u2019ve worked so constructively with government over the past 12 months to 18 months on developing a seamless border, which would give every Australian a better, safer, more secure experience.\u201d<\/p>\n

Osmond is calling for the new tax rate to be frozen for at least four years, claiming the PMC tax had increasingly become a \u201crevenue grab for Treasury\u201d with little evidence the billions of dollars collected from travellers was being reinvested back into tourism, aviation or border infrastructure.<\/p>\n

\u201cRight 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,\u201d she said.<\/p>\n

\u201cIt 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.\u201d<\/p>\n

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