Passenger Movement Charge Amendment Bill 2026

Mr HILL (Bruce—Assistant Minister for Citizenship, Customs and Multicultural Affairs and Assistant Minister for International Education) (09:50): I move: That this bill be now read a second time. The Passenger Movement Charge Amendment Bill 2026 gives effect to one of the government's announced budget measures which will amend the Passenger Movement Charge Act 1978to increase the passenger movement charge from $70 to $80 from 1 January 2027.

The passenger movement charge is imposed on persons departing from Australia for another country and is usually collected by the carrier, such as an airline, at the time a ticket is sold, and then remitted by the carrier to the Department of Home Affairs. The Passenger Movement Charge Amendment Bill 2026will also support realignment of the calculation of the passenger movement charge to the date of departure of the passenger, rather than the date of ticket sale.

This change will also be supported by an 18-month transitional arrangement for carriers from 1 January 2027 to 30 June 2028. The current PMC of $70 will be due where tickets were sold prior to this bill receiving royal assent. This transitional arrangement is a responsible measure to support industry partners in adapting business process and enable carriers to continue to collect and administer collected revenue on behalf of the government.

Revenue collection measures, such as the collection of the passenger movement charge, play an important role in advancing Australia's economic interests. The last increase to the passenger movement charge was in 2024, rising from $60 to $70. This bill will increase revenue by $755 million over four years from 2026-27 to 2029-30.

Through negotiations with the sector, the government has agreed to delay the start of the measure to provide more time to implement the change, with the final figures dependent on the passage of this bill. This is one of several measures the government announced in the 2026-27 budget as part of our economic and fiscal strategy to make the economy and budget stronger, more resilient and more sustainable over the medium term.

The good news is Australia continues to see a steady increase in international visitors to our country, and the outlook for the visitor economy is positive. I also note in that spirit the recent announcements regarding the next phase of border modernisation to improve the traveller experience and productivity at airports and seaports, including the digitalisation of the arrival card following the successful trials with Qantas.

This increase to the passenger movement charge will apply to persons departing Australia from 1 January 2027 with a ticket purchased after the date of the bill receiving the royal assent. This is a considered and responsible measure that will contribute to the continued economic prosperity of Australia, including continued support and investment in our travel and tourism sectors.

Debate adjourned.