Passenger Movement Charge Amendment Bill 2026: what it proposes

The short answer

Passenger Movement Charge Amendment Bill 2026: what it proposes

The Passenger Movement Charge Amendment Bill 2026 is a government bill introduced in the House of Representatives on 12 August 2026. It would amend the Passenger Movement Charge Act 1978 to increase the passenger movement charge (PMC) from $70 to $80 per departing passenger, with effect from 1 January 2027, and would change the timing rule so that the charge is calculated by reference to the passenger's date of departure rather than the date the ticket was sold, with a six-month transition arrangement for carriers where tickets were sold before the new rate took effect. On 19 August 2026 the second reading debate resumed in the House and was adjourned the same morning, and the Leader of the House declared the bill referred to the Federation Chamber; the bill is before the House and has not been enacted.

This is a federal system guide. State constitutions, parliaments and local-government laws can allocate comparable functions differently.

The useful question is not only “what is the rule?” but also “who administers it, which document controls it, and when might it change?” That distinction prevents an accurate general explanation from becoming wrong advice in a particular election, chamber or policy setting.

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What the bill would do

The bill would amend the Passenger Movement Charge Act 1978 to increase the passenger movement charge from $70 to $80 per passenger, effective from 1 January 2027. The PMC applies to passengers aged 12 years and over departing Australia for another country by air or sea, whether or not they intend to return.

The bill would also change the point at which the charge is calculated. Under the amended arrangements, the rate would be determined by reference to the passenger's date of departure rather than the date on which the ticket was sold. The bill would support this change with a six-month transition arrangement for carriers covering tickets already sold before the new rate commenced.

The bill does not change the existing exemptions. Passengers aged 11 and under, transit and emergency passengers, crew members, defence personnel and their spouses, and certain other categories remain exempt from the charge under the Act.

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Why the charge is being increased

The increase was announced in the 2026-27 federal Budget, delivered on 12 May 2026. Budget Paper No. 2 stated that the Government would increase the passenger movement charge from 1 January 2027 by $10, from $70 to $80 per passenger.

The Budget Papers estimated the measure would increase revenue by $755 million over the five years from 2025-26. The Budget also provided $700,000 in 2026-27 to the Department of Home Affairs to administer the change.

The passenger movement charge was introduced in 1995 as a charge on passengers departing Australia, and has been increased several times since. It is collected from passengers as part of the fare by airlines and shipping companies, which are responsible for remitting it to the Australian Border Force.

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Who would be affected

The charge applies to every passenger aged 12 and over departing Australia, including Australian citizens, permanent residents, international visitors and students. Because it is a flat rate per departure, the increase adds $10 to the cost of each affected departure regardless of the fare class, destination or how the ticket was purchased.

The change would affect passengers departing from 1 January 2027, including those who booked tickets before that date. The six-month transition arrangement is designed to give carriers time to adjust their pricing and systems where tickets were sold before the new rate commenced.

Industry bodies criticised the increase when it was announced, arguing that it raises the cost of travel at a time when airlines and tourism operators are already under pressure from rising fuel costs. Tourism and Transport Forum Chief Executive Margy Osmond said the Government should freeze the rate for at least four years over the forward estimates.

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How the charge is administered

The passenger movement charge is imposed 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, which is part of the Department of Home Affairs.

Airlines and shipping operators include the charge in ticket prices and remit the amounts collected to the Australian Border Force. The charge applies equally to low-cost fares, free or points tickets, and first-class fares, and it applies to both short-haul and long-haul departures.

The bill would amend the rate in the Act itself. It would not change the collection mechanism, the exemptions, or the way the revenue is treated in the Budget.

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Parliamentary status and what happens next

The bill was introduced in the House of Representatives and read a first time on 12 August 2026, with the second reading moved the same day. It is listed as before the House in the 48th Parliament under the Home Affairs portfolio. The bill page records no proposed amendments circulated.

According to House Live Minutes No. 77, on Wednesday 19 August 2026 the order of the day was read for the resumption of the debate on the question that the bill be now read a second time. The debate resumed at 9:56 am with a contribution from Mr Hastie, and was adjourned at 10:04 am by Dr Charlton, the Assistant Minister for Science, Technology and the Digital Economy, with the resumption of the debate made an order of the day for a later hour.

The same minutes record, under the item on bills declared referred to the Federation Chamber, that the Leader of the House, Mr Burke, declared that, unless otherwise ordered, the Passenger Movement Charge Amendment Bill 2026 stands referred to the Federation Chamber for further consideration at the adjournment of the debate on the motion for the second reading.

To become law, the bill would need to pass the House of Representatives, be agreed to by the Senate, and receive Royal Assent. It has not yet been enacted, and the rate increase has not yet taken effect.

Evidence review

Chamber record cross-check — 19 August 2026

Two official records were cross-checked for this update: House Live Minutes No. 77 (Wednesday 19 August 2026, record identifier 73c9ca6cd433e755) and the APH bill page for the Passenger Movement Charge Amendment Bill 2026 (record identifier d3236a5c37754ec7). Both records refer to the bill by its title, Passenger Movement Charge Amendment Bill 2026, and both were checked on 19 August 2026.

House Live Minutes No. 77 record that the order of the day was read for the resumption of the debate on the question that the bill be now read a second time, that the debate resumed at 9:56 am with Mr Hastie speaking, and that the debate was adjourned at 10:04 am by Dr Charlton, Assistant Minister for Science, Technology and the Digital Economy, with the resumption of the debate made an order of the day for a later hour. The same minutes record, under the item on bills declared referred to the Federation Chamber, that the Leader of the House, Mr Burke, declared that, unless otherwise ordered, the Passenger Movement Charge Amendment Bill 2026 stands referred to the Federation Chamber for further consideration at the adjournment of the debate on the motion for the second reading.

The APH bill page, as checked on 19 August 2026, records that the bill was introduced and read a first time on 12 August 2026, that the second reading was moved the same day, that no proposed amendments have been circulated, and that the bill is before the House in the 48th Parliament under the Home Affairs portfolio. The bill page had not been updated with the 19 August 2026 debate at the time it was checked; the debate details above are drawn from House Live Minutes No. 77.

House Live Minutes are a draft working record of the chamber produced during the sitting; they are subject to revision before the official Votes and Proceedings and Hansard are published. Neither the minutes nor the bill page is a final record of the debate, and the bill has not been enacted.

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