Australia to Raise Departure Tax in 2027

Passengers leaving Australia by air or sea will soon pay higher departure fees after the government confirmed an increase to the country’s Passenger Movement Charge as part of its federal budget plans.

From January 1, 2027, the charge will increase from $70 to $80 per traveler. The higher fee will apply to all passengers departing Australia after that date, regardless of when tickets were originally booked.

The Australian government said the increase is expected to generate an additional $755 million in revenue over the next five years.

The Passenger Movement Charge applies to most international travelers leaving the country and is typically included within airline tickets and cruise fares.

The decision has drawn criticism from tourism and cruise industry organizations, which argue the higher tax could discourage visitors and reduce Australia’s competitiveness as a travel destination.

Cruise Lines International Association (CLIA) said the increase comes at a challenging time for the tourism industry, which continues to deal with global economic pressures and rising operating costs.

“Increasing the Passenger Movement Charge places yet another burden on travellers at a time when the tourism community is working hard to overcome challenges at home and overseas,” the organization said in a statement.

CLIA also warned that rising travel costs could place additional pressure on the cruise sector, which has already seen some cruise lines reduce or cancel Australian deployments due to market conditions and operating expenses.

Industry groups note that Australia already has one of the highest departure taxes in the world, and tourism leaders fear the latest increase may cause some travelers to reconsider booking cruises and vacations in the region.