The Passenger Movement Charge Amendment Bill 2026 seeks to amend the Passenger Movement Charge Act 1978 to increase the rate of the charge imposed on individuals departing Australia for another country. From the explanatory memo:
The Bill amends section 6 of the Passenger Movement Charge Act to increase the rate of the passenger movement charge from $70 to $80 for liable persons who depart Australia on or after 1 January 2027.
To minimize disruption to the aviation and maritime industries, the Bill includes an 18-month transitional period. Under these arrangements, the $80 rate applies to departures on or after 1 January 2027, provided the ticket was sold after the Bill receives Royal Assent. For tickets sold on or before Royal Assent, the existing $70 rate will continue to apply for departures occurring between 1 January 2027 and 30 June 2028. From 1 July 2028, the $80 rate will apply to all departures regardless of when the ticket was purchased.
The government notes that this extension from a six-month to an 18-month transition period was made following consultation with industry:
For aviation carriers, the extension aligned more closely with established International Air Transport Association (IATA) processes and airline booking cycles... For maritime carriers, the extension addressed concerns about long-term advance bookings, where cruise tickets may be sold several years before departure.[Explanatory Memo page 2]. The measure is expected to increase government revenue by approximately $80 million in its first year, rising to $230 million by 2029-30.
The proposed increase to the Passenger Movement Charge (PMC) represents a fiscally responsible measure to bolster the Commonwealth's revenue base. As a "user-pays" contribution, the PMC ensures that those utilizing international travel infrastructure contribute to the costs of border processing, biosecurity, and aviation security. The $10 increase is relatively modest in the context of international travel costs and is unlikely to significantly deter travel, yet it provides substantial cumulative funding—estimated at over $200 million annually by the end of the decade—for essential public services [Judgment].
Furthermore, the Bill addresses administrative inefficiencies by aligning the calculation date of the charge with the actual date of departure rather than the date of ticket sale. This simplifies the remittance process for carriers in the long term. The inclusion of a generous 18-month transitional period demonstrates a pragmatic approach to governance, acknowledging the operational realities of the travel industry and protecting consumers who have made long-term bookings from unexpected retrospective charges.
While a $10 increase may appear minor in isolation, it adds to the cumulative tax burden on travelers and the tourism industry. Australia is already a high-cost destination due to its geographic isolation; increasing the PMC risks marginalizing price-sensitive travelers and could negatively impact the competitiveness of the Australian tourism sector [Judgment]. Any reduction in visitor numbers or length of stay could offset the projected revenue gains through reduced spending in the broader economy.
From the perspective of individual autonomy, the PMC functions as a "departure tax" that penalizes the fundamental freedom of movement. Increasing such charges without a direct, transparent link to improved passenger services can be seen as an arbitrary revenue-raising exercise. Additionally, the complexity of the transitional arrangements—while intended to be helpful—creates a dual-pricing system for over a year, which may lead to consumer confusion and increased administrative overhead for smaller carriers who must manage different rates based on both sale and departure dates.
2026-08-12
House of Representatives
Before House of Representatives
Unspecified
Home Affairs
Taxation, Transport, Infrastructure