Cut ‘holiday’ tax, Australian government urged

THE AUSTRALIAN GOVERNMENT will get more than A$1 billion (£513.9 billion) in the next financial year from its holiday tax on Australians travelling overseas to destinations and international visitors to the country. 

The government currently applies an A$55 (£28.25) Passenger Movement Charge – or holiday tax – on Australian and international visitors departing the country on flights and cruise ships. It is anticipated to raise more A$1 billion in 2016-17.

The tax was introduced in 1995 to cover the cost of border and security controls at international gateways.

‘The A$55 Passenger Movement Charge has now morphed into a billion dollar holiday tax on Australians and international visitors leaving the country that grossly outstrips the A$247 million cost of processing passengers at the border,’ said Margy Osmond, CEO of the Tourism & Transport Forum Australia. ‘With more than 9.4 million Australians travelling overseas in the past year, the holiday tax has become a cash grab that goes straight into the federal government’s coffers. If you purchase a A$300 one way ticket from Sydney to Bali, $55 of that is now going to the federal government through its holiday tax. A lot of travellers would be questioning what they are getting for their hard earned money.

‘To make matters worse, we are also slugging the 7.4 million international visitors who are choosing #Australia to visit, who can easily chose another destination anywhere in the world, with this holiday tax. We should be growing our international visitations by cutting the cost of travel, not increasing it. We had more than one million Chinese visitors spending A$7.7 billion in the past 12 months – that is not something we should be jeopardizing with holiday taxes.’

Go Holiday news : www.govillasandcottages.co.uk

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