International travellers set for ticket price increase from July

Travellers are being warned to expect to pay more for international flights from July next year with the Federal Government raising passenger tax on tickets.

The extra money raised through the higher international ticket prices will make up for the money lost by the Turnbull Government by not taxing overseas visitors, including backpackers, who find jobs in Australia.

From July next year, international travellers will be slugged $60 per departure ticket, up from $55, which was imposed back in 1995.

The Passenger Movement Charge is set to be built in to all airline tickets leaving Australia.

The government had planned to impose a 32.5 per cent tax on backpacker workers, but a rural lobby argued that it would be impossible for farmers to find workers.

On Tuesday, the government back-tracked on those plans, instead shrinking the tax back to 19 cents in the dollar.

“Farmers will be happy with it so if that’s the case, then I’m happy,” Liberal George Christensen said.

But the move has angered travel lobby groups who say they’ve become a “cash cow” for the government.

“The government has fallen for that old one again of treating our industry like a cash cow,” Tourism and transport forum spokesperson Margy Osmond said.

According to statistics, Australia already has the second highest Passenger Movement Charge in the world.