The Federal Government’s proposed increase to Australia’s Passenger Movement Charge appears set to be defeated after the Greens joined the Coalition and One Nation in opposing the measure.
The charge was due to rise from $70 to $80 per passenger from 1 January 2027, applying to travellers aged 12 and over departing Australia by air or sea.
However, the Government is now expected to fall short of the support required to pass the legislation through the Senate.
Greens MP Elizabeth Watson-Brown told Parliament the party could not support the bill in its current form, arguing the increase would make international travel more expensive during a continuing cost-of-living squeeze.
“As it stands, this bill simply makes the cost-of-living challenge worse,” Ms Watson-Brown said.
The Greens’ position aligns with the Coalition, which announced in August that it would oppose the increase, citing insufficient justification and inadequate consultation.
Shadow Tourism Minister David Littleproud argued the increase would place further pressure on Australia’s $82 billion tourism industry.
According to The Australian, Mr Littleproud cited Treasury aviation analysis indicating a one per cent rise in airfares could reduce passenger movements into Australia by 0.5 per cent in the short term and 2.5 per cent over the medium term.
He said that could translate into 38,000 fewer passengers in the short term and 190,000 fewer passengers over the medium term.
One Nation is also expected to vote against the legislation, leaving the Government without the numbers required in the Senate.
The development follows weeks of opposition from tourism and aviation organisations. As Traveltalk previously reported, Airlines for Australia & New Zealand, the Tourism & Transport Forum and Accommodation Australia jointly warned the increase would make Australia less competitive and place further pressure on travellers and tourism businesses.
Industry organisations also criticised the Government for not committing the additional revenue to improvements in border infrastructure, technology and passenger processing.
The proposed increase has not yet been formally defeated. Unless the legislation passes Parliament, however, the Passenger Movement Charge will remain at $70.
