Feds under pressure to cut $1B tax on travellers
THE tax travellers pay simply to leave Australia is now pouring $1 billion each year into government coffers. Now tourism operators say it’s time to give it the chop.
THE $55 tax everyone pays when they leave Australia will generate more than $1 billion next year but tourism operators say it’s nothing more than a holiday tax that should be scrapped.
In its 2016-17 Federal Budget submission, the Tourism and Transport Forum complains that the sum collected from the Passenger Movement Charge (PMC) outstrips the $250 million cost of providing Customs and Border Protection, and not enough is being spent on marketing.
In fact since 2008, Tourism Australia’s marketing budget has fallen the equivalent of $10 million while other countries such as New Zealand spend more on promoting key attractions.
TTF CEO Margy Osmond said the submission called on the government to freeze the PMC ahead of a phased reduction in the cost.
“The PMC was introduced as a cost recovery measure for providing customs and federal security services at our international gateways, but it’s now morphed into a holiday tax on Australians travelling overseas and international visitors,” said Ms Osmond.
“If nothing is done this holiday tax will be a $1 billion slug on Australians heading overseas to destinations like Bali and any overseas visitors coming to our country who spend their hard-earned money in our economy.”
Federal Minister for Tourism and International Education Richard Colbeck said the PMC had been frozen for this term of parliament, but he would not say what might happen beyond the election due later this year.
The TTF is also seeking to have visa fees reduced to make Australia more attractive to countries like China, India, Brazil and Indonesia whose residents pay $135 each to come here.
Despite larger numbers heading down under, Tourism Economics data shows Australia’s share of outbound travellers from key markets has actually fallen or remained static over the last decade.
The TTF budget submission noted other countries were slashing visa fees to attract more visitors but Australia was moving in the opposite direction.
“High visa costs can deter price conscious travellers,” read the submission.
“They can also make Australia uncompetitive as a destination for business events, with organisers of large meetings and corporate conventions unwilling to pay a multi-million dollar visa bill for their delegates.”
Minister Colbeck said the government was “constantly looking at ways to improve the visa system to attract more visitors”.
“For example, the recent introduction of a multiple-entry, three-year visa for Indonesian visitors effectively reduced the cost of attaining a visa and also sent a positive message to close neighbour and growth market,” he said.
The Federal Budget will be delivered on May 10.
#backpackertax is a false economy @ScottMorrisonMP @Bowenchris @NationalFarmers @AlboMP @richardmcolbeck pic.twitter.com/jLL2RV3JOM
— TTF (@TTFAus) February 23, 2016
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