The Australian Airports Association (AAA) has called on political parties to support using funds raised by the Passenger Movement Charge tax for airport technology upgrades, ahead of this year’s federal election.
The Passenger Movement Charge is a tax of A$70 on passengers flying internationally from Australia. The AAA has asked for an additional 5% of its revenue to be directed to airport and border technology infrastructure.
“We want more PMC [Passenger Movement Charge] funds put directly towards their actual purpose to cover the costs associated with border processing at airports,” said AAA CEO Simon Westaway. “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.”
Around half of the Passenger Movement Charge’s $1.1 billion annual revenue is spent on border processing, according to the AAA.
The charge was raised to $70 in July, a $10 increase. The increase added $47.1 million to the biosecurity processing budget, according to Agriculture Minister Murray Watt.
A larger proportion of funds raised should go towards digitising incoming passenger cards and incentivising SmartGate usage, the AAA said. Digitised incoming passenger cards are now being trialled on flights between Australia and New Zealand.
The AAA also released its priorities for parties to address this election, including expanding international flights and greater support for regional and mid-sized airports.
“The AAA is asking for an ongoing pledge of $50 million a year for the Regional Airports and Remote Airstrip Upgrade Programs to help close the infrastructure gap in our smaller gateways across Australia,” said Westaway.
The organisation said the government should continue to incentivise new entries into the domestic airline market.
The AAA recommended the ACCC’s permanent airline pricing and performance monitoring be extended beyond 2026.
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