The passenger movement charge (PMC) is an Australian tax payable by passengers departing Australia on international flights or sea transport, whether or not the passenger intends to return to Australia.
The PMC was introduced in July 1995 (replacing the previous
departure tax which commenced in October 1978) and was initially described as a charge to partially offset the cost to government of the provision of passenger facilitation at airports, principally customs, immigration and quarantine functions, and the justification has changed each time it was increased. Since 2012, no justification for increases in the PMC has been given.
Since 2017, the PMC has been
A$60 per passenger over 12 years of age, with a few limited exemptions. The PMC is a flat rate, and not a percentage of the ticket price. The same charge applies for low-price tickets, as well as for free or points tickets, and for first-class fares, and for short-distance flights and long-haul flights. The PMC is imposed in addition to
airport fees and airline surcharges. The PMC is paid by airlines and recovered from passengers as part of the fare or as a special charge (e.g., in the case of free or points tickets). In 2001, when the PMC was $30, the revenue from the PMC was approximately A$226 million per annum. According to a 2013 survey by the
International Air Transport Association
The International Air Transport Association (IATA ) is a trade association of the world's airlines founded in 1945. IATA has been described as a cartel since, in addition to setting technical standards for airlines, IATA also organized tar ...
, the average cost of the PMC on the airfare was 3.5%.
[IATA Economic Briefing - The Economic Benefits Of Abolishing The Passenger Movement Charge In Australi]
/ref>
Overview
The PMC is levied under the ''Passenger Movement Charge Act 1978'' and collected under the ''Passenger Movement Charge Collection Act 1978''. It is administered by the Australian Border Force
The Australian Border Force (ABF) is a federal law enforcement agency, part of the Department of Home Affairs, responsible for offshore and onshore border control enforcement, investigations, compliance and detention operations in Australia. T ...
. The PMC is levied on all passengers leaving Australia by air or sea, unless if the passenger is exempt. The main exemptions apply to passengers 12 years of age or younger, transit or emergency passengers, crew members, defence personnel and their spouses, among others. The PMC is typically collected by the airline or shipping company, and remitted to the collection agency, presently the Australian Border Force. The PMC also applies to so-called free or points tickets.
1978-1995
Introdu