International air passenger growth could lift annual government revenue by an additional $380 million by 2030, analysis by the Australian Airports Association (AAA) shows.
The AAA says this growth-driven revenue presents a clear opportunity for the Federal Government to reinvest in long overdue border modernisation at Australia’s international airports, improving the passenger experience and national productivity.
The government’s $70 Passenger Movement Charge (PMC) applies to all departing international passengers aged 12 years and over and currently raises more than $1.35 billion each year for the Commonwealth. Less than half of PMC revenue is reinvested for its intended purpose in border management.
In its 2026–27 Federal Budget submission, the AAA is calling for an additional five per cent of total PMC revenue each year to be allocated to border and airport processing infrastructure at international gateways.
The funding would come from an estimated $380 million a year in extra revenue by FY2030, generated through international passenger growth alone, with no increase to the PMC for passengers.
This would help cover the cost of vital government upgrades, such as additional SmartGate kiosks and digitising the incoming passenger card.
Annual international passenger volumes are projected to grow around 23 per cent by 2030 compared to current levels.
A recent survey by the AAA showed that 71 per cent of Australian travellers support digitising the incoming passenger card, while 78 per cent back passport-less border processing.
“After a long international flight, passengers expect to clear the border efficiently, not spend an hour standing in queues wondering why systems cannot keep up,” AAA CEO Simon Westaway said.
“Many Australians are travelling through places like Bali or Singapore and getting a faster, more seamless border experience than they do at home. When our neighbours are offering a smoother arrival than Australia, it’s a clear signal we need to lift our game.
“Passengers are already paying this charge, and it is reasonable to expect that growth in this revenue is reinvested into the border experience to improve efficiency and productivity, rather than absorbed into consolidated revenue.”
Border processing constraints
The AAA warns that border processing constraints are already limiting the ability of airports to schedule additional international services during peak arrival periods, even where terminal capacity exists.
“The sheer volume of passengers moving through airports over December and January shows just how quickly international travel has rebounded and how much pressure that puts on border systems,” Westway added.
“That’s why more investment now in modern, efficient border processing is so important.
“With millions of additional visitors expected ahead of the Brisbane 2032 Olympic and Paralympic Games, Australia’s borders must operate efficiently and reliably.”
The AAA also renewed its call for the Federal Government to extend the ACCC’s domestic airline competition monitoring program beyond 2026, warning that ending the program would reduce transparency across the aviation system at a time of ongoing capacity and reliability challenges.
According to AAA research, nine in 10 travellers support the extension of ACCC airline competition monitoring beyond the December 2026 deadline. The ACCC has also expressed its support for extending airline competition monitoring.
“It’s clear that airline monitoring has improved visibility of competition and consumer outcomes, and that transparency should not simply switch off in 2026,” Westway said.
He added that recent disruptions in the aviation network have also highlighted the importance of adequately resourcing essential government services, including air traffic control and border processing.
Staffing challenges at Airservices Australia and ageing infrastructure have contributed to delays, cancellations and reduced service reliability.
“Flight delays and cancellations show just how critical it is to adequately resource air traffic control and border services,” Westway concluded.
Federal Budget recommendations
Among its Federal Budget recommendations, the Australian Airports Association is calling on the Federal Government to:
- Allocate an additional five per cent of PMC revenue each financial year to border and airport processing infrastructure
- Fully fund the national rollout of the digital Australia Travel Declaration
- Deploy additional self-service border processing kiosks at international airports
- Permanently extend and fund the ACCC’s domestic airline competition monitoring program beyond 2026
- Provide ongoing, sustainable funding to support safety, connectivity and resilience at regional airports
- Ensure targeted investment and policy support for general aviation airports and operators
- Ensure Airservices Australia is appropriately resourced to deliver air traffic control services in line with published service levels
- Expand bilateral air services arrangements to support international capacity and freight connectivity.
