The Federal Treasurer the Hon. Scott Morrison MP’s justification for increasing the Passenger Movement Charge (PMC) from $55 per passenger to $60 announced yesterday has been rejected by AFTA.
The reasons given by the Treasurer for the $5, or 9% increase, was that the tourism industry needs to “wash its face” by providing further contributions to the budget, a statement the industry is calling “unacceptable”.
The Treasurer expressed that funding was needed from the PMC to pay for such things as e-gates, a counter terrorism unit and improved passenger facilitation. However, the PMC at its current rate of $55 per passenger has, over the last three years, contributed more than $2.5 Billion and will contribute an additional $3 Billion over the forward estimates to more than cover these policies.
AFTA Chief Executive, Jayson Westbury retaliated, saying “the industry believes that we are not only “washing its face”, but we are washing the entire body and leaving the bathroom sanitised along the way.”
In 2016/2017, the PMC at the $55 rate, will collect $1.03 Billion for the Commonwealth Government. Even when the total cost of the new automated departure gates and yearly staffing costs are included against the budget the Government will over charge travellers by $610 million. At the $60 rate the Government will over collect by $703 million.
Westbury points out that with these facts, the justification used by the Treasurer is simply wrong and out of order.
“The travel and tourism industry have been over supplying revenue to the budget by being successful, increasing the movements of passengers both inbound and outbound thereby providing via the PMC a significant amount of money to the budget,” Westbury added.
“To suggest that we are not already washing our face by providing $1 billion is not true. The industry has no control over how the treasurer and the government decided to spend this money and clearly the amount of money being collected will have well and truly already paid for the various upgrades necessary to protect against terrorism and an improved passenger movement experience.”
Before the increase is approved by the Parliament, AFTA and the travel industry is calling on Labor, the Greens and all of the cross benches to block this increase to the PMC.
“The industry is insulted at the suggestion that we do not already pay our fair share of tax and contributions to the budget and the notion that we now need to wash our face in order to ensure that Australia remains at the leading edge of passage facilitation is not correct,” Westbury said.
AFTA suggests that every Australian planning an overseas holiday next year should object to their local member about this increase.
