ACI Asia-Pacific & Middle East calls on Australian Government to reinvest aviation tax revenue to strengthen affordability and competitiveness

Airports Council International Asia-Pacific & Middle East (ACI APAC & MID), the airport trade body representing more than 600 airports across the region, urges the Australian Government to consider the broader economic impact of increasing passenger taxes and levies on travel affordability, tourism competitiveness, and connectivity, and to ensure revenue collected is reinvested into the aviation system to enhance productivity.

 The Australian Government’s decision to increase the Passenger Movement Charge (PMC) to AUD 80 per outbound international passenger, effective 1 January 2027, presents an important opportunity to direct additional revenue toward border modernisation and passenger experience improvements in line with neighbouring airports across the region, such as Thailand, Indonesia and Singapore. ACI APAC & MID notes that only around half of PMC revenue is currently directed toward border management purposes, and encourages the Government to consider the significant opportunity to reinvest these funds in digital and biometric border processing technologies that would reinforce Australia’s position as a world-class destination.

Stefano Baronci, Director General of ACI Asia-Pacific & Middle East, said: “Every additional dollar imposed in the form of a tax or levy, matters. Aviation supports 600,000 jobs (including direct, indirect, induced and tourism catalytic) and contributes USD 68 billion to GDP in Australia alone. Governments must be very cautious about measures that make travel less affordable. The fiscal benefit of a tax can be outweighed by the economic losses caused by suppressed demand and weakened connectivity. ACI APAC & MID encourages governments to carefully assess aviation-specific taxes against their broader economic consequences, particularly at a time when passengers and the industry continue to face elevated cost pressures from higher airfares, inflation, fuel volatility, supply chain constraints and geopolitical tensions.”

 ACI’s position is aligned with the long-standing policy framework of the International Civil Aviation Organization (ICAO), which calls on States to reduce, to the fullest practicable extent, and make plans to eliminate taxation on the sale or use of international air transport.

 ACI APAC & MID remains committed to working with all stakeholders to ensure aviation taxation is fair, transparent, and consistent with ICAO policies, supporting Australia’s growth as a connected and competitive destination.