Everyone leaving Australia will pay an extra $10 from 1 January 2027, after the federal budget on Tuesday night lifted the passenger movement charge from $70 to $80. The increase applies to Australians and tourists alike, and will hit anyone departing the country after that date, no matter when they booked their ticket.
The government expects the change to raise an additional $755 million over five years. The passenger movement charge is an exit tax levied on every person leaving Australia, whether by air or sea, except in special circumstances. Travellers under 11, foreign military, airline staff and people who unintentionally arrive in Australia for reasons beyond their control are among those exempt, while passengers can also seek a refund if their departure does not happen for several reasons.
The charge has been around for decades. It was introduced under the Keating government as an updated version of the departure tax brought in in 1978 to recoup passenger-processing costs at Australia’s air and sea ports. In 1995, it was $27. Since then, it has climbed steadily and is already considered one of the highest departure taxes in the world.
What was missing from this round of changes was any explanation of how the extra revenue would be spent. That stands out because the fee has often been linked in the past to passenger processing, aviation security or other travel-related budget costs, even as airlines face rapidly rising aviation fuel costs. Qantas and Virgin have previously said those higher fuel costs would have to be passed on to consumers, adding another layer of pressure for travellers who are already being asked to pay more just to leave the country.
The size of the increase is modest in dollar terms but sharp in percentage terms: $10 on a $70 charge is a 14.29 per cent rise. For people flying or sailing out of Australia after 1 January 2027, the question is no longer whether the tax will rise, but how much more of the journey’s cost will be pushed onto the passenger before the trip even begins.
