Government proposal to hike departure tax slammed by Australian tourism
The tourism and airline industry in Australia has slammed the latest proposal to increase departure tax by up to $270 for first class travellers.
The proposal is included in a wide ranging government review which also outlines a potential increase in tax to $200 for business travellers, while departure tax would be lowered to $42 for economy travellers to New Zealand.
The government says any changes will be revenue neutral.
The proposal has been strongly condemned by the Tourism and Transport Forum.
"At a time when other countries are reducing or removing their departure taxes altogether, any rise in the passenger movement charge would act as a deterrent for potential visitors to Australia," said TTF chief executive Margy Osmond.
"The tourism industry rejects the assertion that any change to the passenger movement charge must be revenue-neutral, because reducing the PMC and improving our visa processing will help attract more visitors to Australia who will spend money throughout the country, supporting jobs and businesses nationwide."
The travel agent industry has also been critical of the proposal.
"The Australian Federation of Travel Agents does not support any changes to the passenger movement charge other than a reduction in the cost by way of the removal of the disparity between the actual cost recovery for the service provided to passengers and the amount charged," said Jayson Westbury, chief executive of AFTA.
Immigration Minister Scott Morrison, who sanctioned the review, said it is was published in order to consult with the industry and does not necessary reflect government policy.
This year the government expects to receive $908 million from the tax.
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