The current Passenger Movement Charge (PMC) is $47. According to the Australian government, PMC was introduced in July 1995 (replacing Departure Tax) and is imposed in respect of the departure of a person from Australia for another country, whether or not the person intends to return to Australia.
The new PMC will rise by $8 with a new charge of $55 for each Australian traveller leaving the country.
Though the Australian Tourism Export Council (ATEC) was unable to sway the government in maintaining the current PMC, ATEC along with other business partners, were able to persuade the administration to bury a campaign to increase the CPI.
The Consumer Price Index (CPI) measures the price of a selection of goods and services for a typical consumer. It is the most commonly used index to calculate the inflation rate around the world.
According to Felicia Mariani, ATEC’s managing director, the hike in CPI could have “damaged” the industry as a whole.
“The industry isn’t excited about the prospect of an increase to the PMC, which comes on top of the carbon tax, the high Australian dollar and all the other external pressures faced by tourism businesses right now.”
“[However], this decision was a direct result of a coordinated and sustained campaign against this indexation that finally went beyond the halls of Canberra.”
“Industry’s objection to this latest grab for cash was vocal, public and solid in its commitment by ALL industry associations.”
Mariani went on to say, hikes in fees should be judged on travellers who visit Australia and the industry. Australian’s should not have to bear the burden of the government’s revenue issues.