Senate debates

Thursday, 29 February 2024

Bills

Passenger Movement Charge Amendment Bill 2024; Second Reading

12:15 pm

Photo of Susan McDonaldSusan McDonald (Queensland, National Party, Shadow Minister for Resources) Share this | | Hansard source

The Passenger Movement Charge Amendment Bill 2024 will amend the Passenger Movement Charge Act 1978 to increase the passenger movement charge from $60 to $70 from 1 July 2024. The passenger movement charge is imposed on persons departing Australia for another country and is usually collected by the carrier, such as an airline, at the time the ticket is sold and, at that time, is remitted by the carrier to the Department of Home Affairs.

The passenger movement charge helps to fund crucial border protection services, including Immigration and Customs. However, I'd like to acknowledge the concerns raised by the tourism industry about the potential impacts of an increase to the charge in the midst of a cost-of-living crisis. The passenger movement charge in Australia is one of the highest departure taxes in the developed world. At a time when we want to be doing everything we can to help and support our tourism industry, it is unfortunate that the government has chosen to increase the passenger movement charge. In 2017 the then shadow tourism minister, Mr Anthony Albanese, said:

… the increase in the Passenger Movement Charge has real consequences for tourism and will have jobs impacts in the tourism industry, which employs a million Australians, is Australia's largest services export and has been nominated as one of Australia's five super growth sectors …

Evidently the Prime Minister has no qualms now about further increasing the charge, in the midst of a cost-of-living crisis. At a time when we want to be doing everything we can to help and support our tourism, it is unfortunate that the government has chosen to increase the passenger movement charge. The passenger movement charge was last increased in 2017, and the coalition government legislated a five-year freeze on further increases. That freeze has now ended and, while the current $10 increase is consistent with the CPI over that time, I encourage the government to be cognisant of the impacts on Australia's tourism industry when considering any further increases to this charge. I'd also like to commend the important work of the men and women in the Australian Border Force in protecting our borders, which the passenger movement charge ultimately supports. The coalition will be supporting this bill without amendment.

12:18 pm

Photo of Carol BrownCarol Brown (Tasmania, Australian Labor Party, Assistant Minister for Infrastructure and Transport) Share this | | Hansard source

The increase to the passenger movement charge is one of several measures that the government announced in the 2023-24 budget as part of our economic and fiscal strategy to make the economy and the budget stronger, more resilient and more sustainable over the medium term. The Passenger Movement Charge Amendment Bill 2024 will amend the Passenger Movement Charge Act 1978 to implement the government's announced budget measure to increase the passenger movement charge from $60 to $70, effective from 1 July this year. The increase of $10 to the passenger movement charge is broadly in line with the increase in inflation since the last time the charge was increased, in 2017. The additional revenue generated from this increase will help advance Australia's economic interest and will bolster the government's capacity to invest in the protection of our international border, including the government's recent investment in strengthening Australia's biosecurity system, as well as supporting the important and expanding work of the Australian Border Force. I thank senators for their contribution to this debate and commend the bill to the Senate.

Question agreed to.

Bill read a second time.