Canadians travelling to Australia face higher fees with planned tax hike
If you’re planning a trip from Canada to Australia, a new tax hike could make your vacation even more expensive.
Tourists from Canada already know that trips to Australia come with a hefty price tag if they want to see iconic landmarks such as the Sydney Opera House or the Twelve Apostles. And now, it’s set to get even pricier.
On May 12, the Australian government released its federal budget, which announced plans to increase the Passenger Movement Charge (PMC) for travellers departing Australia, according to The Sydney Morning Herald.
What is the Passenger Movement Charge (PMC)?
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The PMC was previously known as the departure tax and was first introduced in 1978 when travellers were charged A$10 (C$13.05, based on an A$0.76 exchange rate in 1978). The government raises rates every three years.
The fee applies to international departures and will be paid by tourists and Australian citizens departing by air or sea.
According to a 2008 research published by the parliament, the PMC was initially charged to cover costs for Customs, Immigration, and Quarantine services. However, it’s now “applied partly as a general revenue-raising source.”
How much more will you have to pay?
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According to federal budget papers, the government is increasing PMC rates by A$10 (C$9.78). That means tax rates are set to go up from A$70 (C$68.45) to A$80 (C$78.22) per person.
You don’t have to pay for the fee separately, as it will be added to the price of your ticket.
When does the new tax rate kick in?
The new rate will apply on Jan. 1, 2027. The government states the increased charge will apply to the date of departure rather than the date of ticket sale.
Australia isn’t the only one raising departure taxes.
On June 20, Thailand is increasing airport departure fees by over 50 per cent from 730 to 1,120 Thai baht (C$30.76 to C$47.19). On July 1, Japan is set to triple its departure tax from ¥1,000 to ¥3,000 (C$8.66 to C$25.97).