Tourism organisations have slammed a measure within the federal funds that may inject $1.3bn to the federal government coffers as a transfer that may enhance journey prices for on a regular basis Australians.
Inside Treasurer Jim Chalmers’ Tuesday funds was a call to carry the Passenger Movement Charge (PMC) by $10 to $70 from July 2024.
The transfer was described as a “tourism tax” which might spell catastrophe for the journey business amid its restoration from the Covid-19 pandemic by Tourism and Transport Forum (TTF) chief govt Margy Osmond.
“This will make it even more difficult for tourism to bounce back, as cost-of-living pressures increase and as the industry rebuilds from the devastating impacts of the Covid pandemic,” Ms Osmond mentioned.
“It will also make it more expensive for international tourists to come to Australia, at a time when we’re desperately trying to attract more visitors, with Australia’s international tourism levels still below pre-Covid levels.”
The further $10 cost on each flight leaving Australia will generate $1.38 billion in income in 2024/25 in accordance with calculations from the Australian Federation of Travel Agents (AFTA).
AFTA chief govt Dean Long mentioned that “now is not the time for additional taxes” as journey stays 30 per cent under pre-Covid ranges.
“Today’s decision to increase the PMC by 16% is extremely disappointing and will make it harder for Australians families to stay connected,” Mr Long mentioned.
“We know that the PMC does reduce air capacity to Australia and with supply of air seat still tracking 30% to pre Covid levels this will slow down our recovery.”
The TTF is asking for the federal government to impose a five-year freeze on future will increase “to provide certainty for the tourism sector”.
“As we continue to recover from the biggest event to impact the tourism industry in recent memory, the freeze will be critically important to give the industry much-needed certainty,” she mentioned.
“The authorities additionally must be extra clear about how the cash collected via the PMC is spent, explaining the place precisely it’s allotted given the typical fee of over assortment.
AFTA says that the rise will value the business an additional $520M over the 5 years from 2022/23.
Source: www.perthnow.com.au
