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Traveller tax reform: How better PMC use could improve Australian airports

The Australian Airports Association (AAA) is urging smarter allocation of the $70 Passenger Movement Charge (PMC) to enhance airport experiences for travellers. The federal levy, collected from international passengers, generates an estimated $1.1 billion annually, but only half funds border management.

The Australian Airports Association (AAA) is urging smarter allocation of the $70 Passenger Movement Charge (PMC) to enhance airport experiences for travellers. The federal levy, collected from international passengers, generates an estimated $1.1 billion annually, but only half funds border management.

The AAA proposes investing more of the PMC into modernising airport infrastructure, including digitising passenger cards, expanding SmartGates, and upgrading terminal kiosks. Such measures would streamline processes for travellers and ease congestion.

Ahead of the 2025 Federal Election, the AAA is calling on political parties to prioritise key aviation issues like seamless travel, competition, sustainability and better government services. 

According to the AAA, reallocating just five per cent of the PMC could deliver significant benefits for international travellers.

Sydney Airport
Sydney Airport.

“The PMC is a little-known charge that international flyers have to fork out when leaving the country,” AAA CEO Simon Westaway said.

“But federal agencies like the ABF aren’t being adequately funded with that money to deliver the most modern global approach for a seamless and safer Australian border.

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

“It makes clear sense given the record return of international travel conditions and the need to efficiently facilitate the significant future passenger projections at Australian airports.”

The AAA is also calling for more regional air travel and mid-sized airport support.

Family passengers Airlines, flying, traveller hack
The AAA says the traveller experience could be greatly improved with a smarter allocation of the $70 Passenger Movement Charge (PMC).

“With the future of Rex Airlines still uncertain, it is vital sustainable regional air services remain. We’re concerned for our regional airports where air connectivity is under threat and which is a lifeline for these communities,” Westaway said.

“The AAA is asking for an ongoing pledge of $50 million a year for the Regional Airports and Remote Airstrip Upgrade Programs to help close the infrastructure gap in our smaller gateways across Australia.

“Some of these airports are operating with inadequate facilities and need major investment to uphold world class safety and efficiency standards.

Travellers walk past Melbourne sign at Melbourne Airport
Travellers walk past Melbourne sign at Melbourne Airport. (Image ChameleonsEye/Shutterstock)

“For example, one of our airport members is still using a World War II-era electrical system that could fail at any time and that’s a big risk for an isolated community.

“Australia’s mid-sized airports also need to be kept in the funding picture and often miss out on government grants simply due to their size and despite their positive growth outlook.

“These airfields should be covered by a federal $25 million Mid-Sized Airport Program to ensure they can better plan and co-participate in essential safety upgrades.”