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Australian Passenger Movement Charge To Rise

by Mary Swire, Tax-News.com, Hong Kong

21 June 2012


The Australian parliament has commenced debate on legislation which will introduce the first Passenger Movement Charge rate rise since 2008.

The Passenger Movement Charge Amendment Bill was submitted to the House of Representatives and gives effect to the increase as detailed in the recent Budget. It will see the rate rise from AUD47 (USD48) to AUD55, a change described by the government as moderate and representing less than 0.5% on a typical international airfare.

The government will no longer proceed with its planned annual indexation of the rate of the Passenger Movement Charge to the Consumer Price Index (CPI). It will instead continue with the current practice of periodic increases.

The AUD8 rise is expected to generate AUD485m. Over the next four years, AUD48.5m of this will be allocated to a new Asia Marketing Fund. The fund will support the promotion of Australia in growing Asian markets and the government hopes it will encourage investment by the private sector, State and Territory Governments.

An additional AUD48.5m over four years will be provided to a newly created Tourism Industry Regional Development Fund. This fund is designed to support tourism industry development projects in regional Australia, through grants of up to AUD250,000. Project funding will be matched by successful applicants on a dollar for dollar basis, and a Panel will be set up to provide oversight of the fund.

The government says that this package provides strong support for Australian tourism while supporting its fiscal objectives and returning the budget to surplus.

TAGS: tax | air passenger duty (APD) | aviation | Australia | travel and tourism | legislation | tax rates

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