Australia is set to increase exit fees for anyone leaving the country in 2027. The announcement, made as part of the new federal budget, has sparked anger among travel and tourism stakeholders.
The Passenger Movement Charge is a flat fee bundled into air fares. It is levied on nearly all departing passengers over the age of 11, whether nationals or visitors in Australia. Only airline staff, foreign servicepeople, and unintentional arrivals in Australia are exempt.
The cost currently stands at AUD $70 (around €43) but will go up by AUD $10 to hit AUD $80 in January 2026. The over 14% increase comes amid concerns over fuel costs in the aviation sector, which many fear will be passed onto customers, adding to a chilling effect on the international travel market.
Graeme Hughes, an Adjunct Associate Professor at Griffith University, remarked on the impact of the per-person increase on larger families, and told Explore that the speed of price increases “stings.” He noted: “We only just saw the rate climb from $60 to $70 in July 2024, so we are looking at a 33 per cent jump in the cost of leaving the country in under three years.”
Australia’s tourism sector has not welcomed the move, noting that, though budget papers predict an injection of AUD $755 million over the next five years thanks to the tax, the federal government has not yet revealed how those additional funds will be used. The country’s ongoing use of increasingly old-fashioned incoming passenger arrival cards and airport upgrades are two areas that critics say require investment.
Australian Tourism Export Council (ATEC) said the budget as a whole “reduces support for an industry that is still stabilising post pandemic, and facing growing pressure around traveller affordability, aviation costs and booking conversion as a result of the Middle East conflict.” ATEC managing director Peter Shelley pointed out that planned cuts to Tourism Australia funding put at jeopardy “Australia’s ability to convert travellers in an increasingly cautious and price-sensitive long-haul travel environment.”
Cruise Lines International Association (CLIA) Australasia has issued a statement slamming the price hike as “yet another burden on travellers at a time when the tourism community is working hard to overcome challenges at home and overseas.”
Meanwhile, the move has “blindsided” the national Tourism and Transport Forum (TTF), which pointed out there had been no prior industry consultation and no transparency over the benefits a tax increase would bring. TTF CEO Margy Osmond told SBS News: “It is not good enough to just slap an additional tax on the travelling public and the tourism industry without improving the conditions that those travellers will be experiencing when they cross the border.”
However, Trade and Tourism Ministry spokesperson Don Farrell dismissed concerns over the impact on consumers. “Australia’s experience has been that relatively small increases to the PMC do not have a measurable effect on international visitation,” he said, adding: “Following the last $10 increase in the PMC, short-term international arrivals increased by 5 percent year-on-year, rising from 7.97 million to 8.40 million visitors.” Although no precise use for the money was given, Farrell also said the government “remains committed to ongoing modernisation of the border.”