Australia will increase its Passenger Movement Charge for travellers departing the country by air or sea from January 1st, 2027, lifting the fee from AU$ 70 to AU$ 80 as part of the federal budget measures announced by the government. The revised charge will apply regardless of when tickets were purchased and is expected to generate an additional AU$ 755 million over 5 years.
The Passenger Movement Charge, collected through airline and cruise fares, applies to most international departures from Australia and has been in place since the mid-1990s. Government budget documents also indicated that the calculation of the charge would shift from the date of ticket purchase to the date of departure, with a transitional arrangement planned for carriers during the first six months of implementation.
The increase has drawn criticism from tourism and cruise industry organisations, which argued that higher travel costs could place further pressure on a sector still managing rising operational expenses and uneven recovery conditions. Industry representatives warned that Australia already ranks among the higher-taxed departure markets globally and suggested the additional charge could weaken the country’s competitiveness as a cruise and tourism destination.
Cruise Lines International Association stated that the timing of the increase added another burden for travellers and operators at a period when the wider tourism sector was attempting to stabilise amid global economic pressures. Concerns were also raised that additional costs could influence future cruise deployment decisions in the Australian market, where some operators have already adjusted capacity in response to operating conditions.