ACI Asia Pacific and Middle East has warned that increased Australian passenger taxes could affect travel affordability connectivity and wider aviation sector competitiveness.
Airports Council International Asia Pacific and Middle East has urged the Australian Government to carefully assess the wider economic impact of increasing passenger taxes on international travel.
The organisation raised concerns following the decision to increase Australia’s Passenger Movement Charge to AUD 80 per outbound international passenger from January 2027.
ACI APAC warns Australian aviation tax increase could impact connectivity
ACI APAC & MID said higher aviation taxes risk affecting travel affordability, tourism competitiveness and broader air connectivity at a time when the aviation industry continues facing significant economic pressures.
The organisation represents more than 600 airports across Asia Pacific and the Middle East.
According to ACI APAC & MID, only around half of the revenue currently collected through the Passenger Movement Charge is directed toward border management and aviation related infrastructure.
The trade body is encouraging the Australian Government to reinvest future revenues into airport modernisation programmes including digital and biometric passenger processing technologies.
ACI APAC & MID stated that improved border processing infrastructure could strengthen Australia’s position as a competitive international destination alongside regional aviation markets such as Singapore, Thailand and Indonesia.
Stefano Baronci, Director General of ACI Asia Pacific & Middle East, warned that increasing taxes and levies on passengers can have broader economic consequences for aviation demand and connectivity.
He noted that aviation supports approximately 600,000 jobs and contributes around USD 68 billion to Australia’s gross domestic product.
The organisation also highlighted continuing operational challenges across the aviation industry, including elevated airfares, inflation, fuel price volatility, supply chain disruption and geopolitical tensions.
ACI APAC & MID said it remains committed to working with governments and industry stakeholders to ensure aviation taxation policies remain fair, transparent and aligned with international aviation guidance from the International Civil Aviation Organization.
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