Julian Leeser (Berowra, Liberal Party) Share this | Link to this | Hansard source

Travel agents have been hit particularly hard by the COVID-19 pandemic. International border closures have prevented travel agents from recovering in the same way as other businesses. In July, I attended a breakfast forum in my electorate with travel agents, hosted by Darren Rudd, the CEO of the Australian Federation of Travel Agents, to discuss the unique challenges travel agents face. There are over 3,000 travel agent businesses across Australia, contributing over $28 billion to the Australian economy annually. The industry employs around 40,000 Australians, predominantly women. This is an industry that has enabled Australians to have great international and domestic travel experiences.

I think about some of the travel agents in my electorate who have shared their stories with me: Stephanie Savage from the Impulse Travel Group, a power advocate and a wonderful entrepreneur who has operated her multisite business for decades; Monique Monsees and Elizabeth Ellis at Cherrybrook Travel, who recently won the Hornsby Ku-ring-ai Local Business Award; Chris and Sandy of Travel Africa Your Way, who know Africa better than anyone; Lynn Bradley from Compass Travel & Cruising, who runs a 35-year-old business; Graham and Kent Ross from Ross Garden Tours, the most celebrated gardening tourism business in Australia; Lori and Derek Kirk from Hornsby Travel and Cruise, whose business operates from the Hornsby Mall; Paul Lechner of Addicted to Maldives, a specialist agent for one of the most beautiful places in the world; and Louise McCarthy, Michelle Desmarchelier and Penny Toon, travel managers who organise travel for busy corporates and families.

Travel agents face particular difficulties because of the commission structures under which they operate. The commission structures have made travel agents particularly vulnerable to the pandemic's impact. While travel agents experienced dramatic falls in revenue, they also had to refund commissions received from the previous year of operating. Despite seven consecutive months of almost no income, travel agents have been key to facilitating refunds for Australians who haven't been able to travel. The repatriation of approximately $10 billion is an ongoing process, with an estimated $4 billion in refunds still outstanding. It is a complicated process which has no doubt been difficult for every travel agent. I want to acknowledge the fortitude travel agents have shown in undertaking this task, despite having no certainty about the future.

While JobKeeper has helped get the travel industry through the pandemic, many travel agents have missed out on government support available to other businesses. Most do not benefit from the most recent loss carry-back measure announced in the budget. Many travel agents are not corporate tax entities, which is a requirement to qualify for the loss carry-back measure. Most travel agents are set up as family trusts, unit trusts, partnerships or sole traders. In fact, AFTA has over 1,300 sole traders operating a travel agency business, none of whom qualify. The unique characteristics of the industry warrant industry-specific support from government. I commend the efforts of the Minister for Trade, Tourism and Investment, who is actively considering further support for the industry. I raise these issues on behalf of my constituents and add my voice to the colleagues who have also raised these issues publicly.