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Spend more of departure tax on border processing, airports urge

written by Jake Nelson | January 14, 2025

International travellers pass through airport SmartGates. (Image: Australian Border Force)

Australia’s peak airports body has called for more funds raised from the Passenger Movement Charge (PMC) to be spent on improving border processing at airports.

The PMC, which was increased to $70 per passenger as of last July, is added to departing international passengers’ airfares and brought in more than $1.2 billion in revenue for the government annually pre-COVID-19.

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Around half of the PMC’s annual $1.1 billion estimated revenue is spent on border management. The Australian Airports Association (AAA), as part of its pre-election asks, is calling on the federal government to spend another 5 per cent on “crucial infrastructure upgrades” at Australia’s international airports.

“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.

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“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 has also separately called for the government to pledge $50 million per year to the Regional Airports and Remote Airstrip Upgrade Programs to help “close the infrastructure gap”, citing concerns for the future of regional aviation amid the ongoing uncertainty with Rex.

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

“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.”

Other AAA election recommendations include permanent ACCC monitoring of airline pricing and performance beyond 2026, and bringing forward lease renewal discussions at major airports to “provide greater investment certainty”.

The office of Transport Minister Catherine King has been contacted for comment.

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