Travel industry leaders have praised Labor’s decision to move against a Federal Government proposal to increase the holiday tax on travellers visiting Australia.
Federal Labor Oppositions has requested a Senate inquiry into the proposed nine percent increase in Passenger Movement Charge (PMC) to $60 per person.
According to Tourism & Transport Forum Australia’s (TTF) CEO, Margy Osmond, the current tax already raises some $1 billion per year, $750 million more than the cost required to provide passenger facilitation services at airports.
She said the hike was included by the Federal Government “without any consultation of forewarning” and believes the tourism industry should no longer “be treated as a cash cow to prop up the budget”.
“Millions of Australians and our international visitors scrimp and save their dollars to be able to afford a family getaway, they deserve better than a Government reaching into their travel budgets to take yet more money out of their holiday fund.”
Margy Osmond, TTF CEO
“This is not a ‘cup of coffee’ increase, it’s a $60 holiday tax on every Australian heading overseas and every international visitor coming to Australia.
“For a family of four with two children over 12 years that is $240 that will be taken out of the family holiday budget before they have even set foot on an aeroplane or cruise ship.
“An extra $240 in the pockets of visitors to Australia can pay for another night’s accommodation, a theme park excursion or a couple of days’ car hire – that means jobs and more spending in our visitor economy.
The Australian Federation of Travel Agents (AFTA) concurred, saying it and its members applauded Labor’s decision to ensure the Government provides better reasons for the proposed increase.
According to AFTA, the reasons given for this increase as expressed by the Treasurer is that the travel and tourism industry needs to “wash its face” by providing a further contribution to the budget. He expressed that funding was needed from the PMC to pay for such things as e-gates, a counter terrorism unit and improved passenger facilitation.
AFTA continued, saying that the travel and tourism industry has always said, it will pay its fair share and will continue to contribute greater tax receipts for the government through the growing passenger movements.
“The Government has shown a complete lack of knowledge and understanding about what is reasonable and the impacts of new taxes on an industry.”
Jayson Westbury, AFTA CEO
“Labor is showing that announcing a tax increase with no consultation is not a way to manage the economy especially when the industry has well and truly already “washed their face” by more than $700m per year.
“Labor is showing leadership and confidence in the travel and tourism industry which is very welcomed and the decision to block this tax hike demonstrates Labor’s understanding of the industry and the economic dynamics that exist in this highly volatile market place.
“We support Labor fully on this blocking measure and the tax payers of Australia, we hope, will thank Labor for this decision, especially those families that are saving hard for what might be their first overseas holiday. This is something that has become more affordable as a result of the work of the travel and tourism industry to ensure that Australia remains well serviced by both air and sea and allows every Australian the opportunity to enjoy an overseas trip.”
