Airports demand better use of departure tax and say ‘Bali has a better system’ than Australia

Australia’s international arrivals experience is worse than Bali, say airports, amid calls for better use of the departure tax that slugs passengers and raises $1bn a year for the government.

As federal leaders begin to roll out big-spending election promises in an effort to win votes, the Australian Airports Association has jumped in with a few suggestions of its own, topped by the need for a more seamless travel experience at international gateways.

Representing more than 340 airports and aerodromes, the AAA also wants a commitment that provides incentives to new entrants for the domestic travel market, support for regional air services and a promise no more airports will be saddled with curfews or movement caps.

Association chief executive Simon Westaway said the highest priority should be improving the international airport experience through innovations such as digital passenger cards, biometrics and more Smartgates.

Australia was one of the only countries in the world which requires arrivals to fill out a paper passenger card and Smartgates are in short supply, resulting in long queues at international arrival and departure areas.

Mr Westaway said much-needed upgrades could be funded through the $70 departure tax, known as the passenger movement charge (PMC), which generated more than $1bn of revenue a year for the government.

“Bali has a better seamless travel experience than Australia as do many other parts of the world which we compete against, and we think it’s really important that we invest in the technology for the future and fast track it,” Mr Westaway said.

“We need to digitise the incoming passenger card and create a better travel experience for Australians as well as welcoming more international visitors to our shores.”

Currently only half the revenue from the PMC is spent on border management and the remainder goes into government coffers.

Supplied image of some SmartGates across Australia’s international airports.

“Federal agencies like Australian Border Force aren’t being adequately funded with that money to deliver the most modern global approach for a seamless and safer Australian border,” Mr Westaway said.

“We want more PMC funds put directly towards their actual purpose to cover the costs associated with border processing at airports.”

The AAA also wants new airlines given incentives to enter the domestic market and take on Qantas, Jetstar and Virgin Australia – more successfully than Bonza or Rex.

Mr Westaway said reforming Sydney Airport’s slot management system was a good start but more was needed including the carve-up of government travel.

“It’s about trying to create the very best conditions we can to enable sustainable competition,” Mr Westaway said.

“Areas like government travel and its procurement should be opened up more if we can because that’s an area that can create more stability in the market particularly as airlines are trying to build routes and add capacity.”

More competition was also considered desirable in the international space to help put downward pressure on airfares, and give more overseas markets direct routes to Australia.

The AAA said that meant expanding bilateral air service agreements to encourage more airlines, more flights and more capacity between key countries.

“The federal government’s policy suite should keep incentivising for new entrants and a more

competitive domestic airline market because competition delivers lower airfares,” Mr Westaway said.

“To ensure that passengers are being treated fairly, we’d like to see permanent monitoring of

airline pricing and performance by the Australian Competition and Consumer Commission extended beyond 2026.”

Although it was very early in the federal election campaign, Mr Westaway said the AAA hoped its wishlist would generate more discussion in the public policy space.

“Aviation is back, people are travelling in volumes similar or greater than 2019 and airports are really starting to make their mark again,” he said.

“Now is the time to plan for the future and ensure we keep moving forward, particularly with the 2032 Brisbane Olympics and Paralympics approaching.”

Originally published as Airports demand better use of departure tax and say ‘Bali has a better system’ than Australia