Australia to increase pax tax

Australia is expected to increase its passenger departure tax from AUD70 (R823) to AUD80 (R940) from January next year.

The changes were introduced in the 2026/27 federal budget.

The Passenger Movement Charge applies to all outbound international passengers over the age of 12 and covers government costs of managing the border controls. However, according to the Australian Airports Association (AAA), only about half of its annual revenue is actually used for border management.

AAA Chief Executive Simon Westaway said increasing the tax by AUD10 (R117) during a challenging economic period risked placing further pressure on travellers. “If passengers are being asked to pay more, it is essential that the additional revenue is reinvested in tangible border upgrades rather than being absorbed into consolidated revenue.”