Government freezes departure tax

[Hvr]

Australia's outbound travellers have been promised a freeze on the departure tax for up to three years.


The federal government on Friday announced there would be no increase to the $55 duty for the term of the new parliament, in a move it expects will boost tourism and business.

Read more: Government freezes departure tax
​

I reckon there will be bipartisan support from all AFFers for this measure.

 

[whatmeworry]

Still too expensive!

 

[here2go]

One of the arguments for keeping the tax so high was travellers sans travel insurance being a burden on DFAT. If true, I have a simple answer - adopt a business process similar to the NSW CTP system that compels you to link your insurance to your rego for travel insurance. No compulsory travel insurance, no departure "stamp". Linking it online like you do with your rego, except linked to your passport, I do not believe to be a burden noting the consequences of getting caught without it when travelling.
This could be interesting for those who are using Credit Card based insurance, but noting that there is at least one country around the world that I can think of that won't give you a visa without insurance, I can't see this would would be an insurmountable challenge.

 

[coles525]

One of the arguments for keeping the tax so high was travellers sans travel insurance being a burden on DFAT. If true, I have a simple answer - adopt a business process similar to the NSW CTP system that compels you to link your insurance to your rego for travel insurance. No compulsory travel insurance, no departure "stamp". Linking it online like you do with your rego, except linked to your passport, I do not believe to be a burden noting the consequences of getting caught without it when travelling.
This could be interesting for those who are using Credit Card based insurance, but noting that there is at least one country around the world that I can think of that won't give you a visa without insurance, I can't see this would would be an insurmountable challenge.

Can you say which country it is that will refuse entry if no insurance is purchased?

 

[here2go]

Can you say which country it is that will refuse entry if no insurance is purchased?

Belarus according to my mother-in-law who travelled there recently. Not high on my travel list. I reckon there should be more of it! IMHO if you don't have insurance you can't afford to travel OS.

 

[UP4014]

While I'm all for taxes not increasing I seriously doubt it will have any affect on tourist numbers.

Can't think of any place I've been where I even considered looking at the departure tax and thought I wouldn't go.

 

[here2go]

While I'm all for taxes not increasing I seriously doubt it will have any affect on tourist numbers.

Can't think of any place I've been where I even considered looking at the departure tax and thought I wouldn't go.

Even with the Departure Tax it's still cheaper for me to fly to Bali than Air North to OOL or VA/JQ or QF to BNE. That said, I have looked at the Indonesian taxes as a reason to NOT transit through DPS over SIN.

 

[ChrisFlyer]

While I'm all for taxes not increasing I seriously doubt it will have any affect on tourist numbers.

Can't think of any place I've been where I even considered looking at the departure tax and thought I wouldn't go.

I'll admit that I've deliberately flown out of FRA instead of LHR due to the UK APD (when SIN-bound). When planning the trip, I could have either returned to the UK for a few days (and spent money there), or visited FRA for the very first time and saved on the APD. As this was when QF still serviced FRA, the choice was obvious - given that it was a leisure trip and that I've 'done' the UK well and truly.

 

[serfty]

Not to mention flying out of, say, AMS through Great Britain onto long haul flights.

Even in economy ( " the lowest class cabin " ) the APD is onerous being upto £92.

 

[whatmeworry]

I belive it is now £94.

 

[marki]

Aweful to pay do much for an ineffecient Airport. All i remember of Heathrow is standing in long lines and being accosted by security guards then having to to wait some more.

 

[Mal]

Aweful to pay do much for an ineffecient Airport. All i remember of Heathrow is standing in long lines and being accosted by security guards then having to to wait some more.

You missed police with real assault weapons looking menacing!

 

[Sprucegoose]

Not to mention flying out of, say, AMS through Great Britain onto long haul flights.

Even in economy ( " the lowest class cabin " ) the APD is onerous being upto £92.

thats a disgraceful free grab .......we are sitting ducks.

always try to avoid LHR if you can

 

[serfty]

I belive it is now £94.

Thanks - yes I see it increased by £2 on April 1.

www.hmrc.gov.uk/public-notices/550-duty-rates.pdf

thats a disgraceful free grab .......we are sitting ducks.

always try to avoid LHR if you can

Certainly - and especially if in PE, J or F where it is now up to £188 (~AU$305).

 

[avk]

At least it's a tax freeze.

 

[mono88]

At least it's a tax freeze.

Agree that any tax freeze is a good thing ( a tax reduction is even better if you want to boost tourism).
But hardly an earth shattering boost for tourism. I think that the tax has been increased 4 times from 1995 to 2012 ($27 to $55), so a 3 year freeze is close to a normal freeze period anyway.
The proposal to index it yearly from 1/7/2013 didn't happen.

The article in the newspaper looks like a regurgitation of a Govt press release or statement, which at least the newspaper acknowledges, making it worthwhile to spend money on a newspaper subscription!!!