Taxes on QFF domestic awards increasing on 1/1/22

[Mattg]

Has anyone noticed that the taxes & carrier charges on Qantas domestic award bookings are increasing from 1 January 2022 by around $7 per flight?

There doesn't seem to be any change to the Qantas-imposed carrier charge. Rather, Qantas is adding a $6.50 "Safety and Security Charge" to all domestic awards from 1 January, which is also adding slightly to the GST component bringing the total tax increase to $7.15 per passenger, per flight.

For example, this is the fare breakdown on a SYD-BNE Classic Flight Reward booking for 31 December 2021:


And on 1 January 2022:


Jetstar also seems to be affected, with domestic awards booked using Qantas points attracting $5.79 more in taxes from 1 January 2022.

Here's an example of a Jetstar award flight on 31/12/21:


And another flight on 1/1/22, which has two added Safety and Security Charges and slightly higher GST as a result:


Virgin doesn't seem to be affected at all and Rex doesn't have a frequent flyer program, but I haven't noticed any changes in the Rex fare breakdown from 1 January. Anyone know what's going on?

The new Safety and Security Charge also appears to be included in paid Qantas & Jetstar airfares from 1 January, although it's included in the fare so only really an issue when making an award booking.

 

[oz_mark]

Probably refects the end of some of the government support schemes.

 

[dylarr]

Is this possibly the winding back of the Government subsidies on the Safety and Security (WG) charge that airlines were able to claim?

I just checked some older bookings and the taxes and fees seem compatible to those being charged post 1st Jan.

edit: beaten by a smidge!

 

[Mattg]

Probably refects the end of some of the government support schemes.

I did wonder this, but Virgin/Velocity doesn't seem to be affected?

 

[oz_mark]

I did wonder this, but Virgin/Velocity doesn't seem to be affected?

I think it's a Qantas invented fee. It's defined in the conditions of carriage as a reasonable estimate of blended costs or somesuch.

 

[dylarr]

I did wonder this, but Virgin/Velocity doesn't seem to be affected?

Does the Velocity reward seat breakdown pre-Jan 1 include the WG charge?

The way Qantas handles this rebate is interesting. For cash fares, they removed the WG component from the breakdown, instead adding its value into the base airfare component. So whilst the WG charge was removed, you were still paying the same price because the base airfare had been increased by the value of the WG component.

However for reward seats the logic has been different (in the customer's favour). They just removed the WG component all together without adding the value of it into the carrier charges or anywhere else, resulting in cheaper reward seats throughout the support period.

 

[Gold Member]

I think it's a Qantas invented fee. It's defined in the conditions of carriage as a reasonable estimate of blended costs or somesuch.

One word. Gouging.

 

[madrooster]

The way the accounting for the WG tax subsidy has been handled differs between carriers. In short JQ and QF opted to bundle it into their base fare because they were no longer required to pay the WG tax to anyone during the relevant periods. VA continued to collect it as normal, but pocketed it. The end effect is the same really.

QF's method proved to be a major pain in the rear during the year in the event that you voluntarily changed a ticket - tickets needed to be manually reissued so that the WG tax/base fare was moved around accordingly. The automation did not handle it well at all. VA on the other hand was a non issue since they didn't change the way they collected WG.

Here's the filed rules for the WG tax:

JQ:

  -  OWNER ATP / CARRIER JQ

.
CHARGE TO BE COLLECTED ON ALL TICKETS/MCOS/PTAS
ISSUED FOR PASSENGERS DEPARTING ON FLIGHTS
IRRESPECTIVE OF PLACE OF ISSUE.
.
COMBINES COUNTER TERRORIST FIRST RESPONSE CHARGE
AND PASSENGER SCREENING CHARGE.
.
.
JQ EXEMPTIONS
.
-TVL ON/BEFORE 23AUG21
-TKT ON/AFTER 14APR21 AND
 TVL ON/AFTER 14APR21 ON/BEFORE 30SEP21
JQ WILL SUSPEND THE WG TAX ON ALL DOMESTIC
FLIGHTS OPERATED BY JQ FOR ALL DEPARTURES AND
ARRIVALS.
-TKT ON/AFTER 14APR21 AND
 TVL ON/AFTER 01OCT21
JQ WILL COLLECT THE WG ON ALL DOMESTIC FLIGHTS
OPERATED BY JQ AT THE OFFICIAL IATA AMOUNTS FOR
ALL DEPARTURES AND ARRIVALS.
.
.
-TKT ON/AFTER 24AUG21
-TVL ON/AFTER 24AUG21 ON/BEFORE 31DEC21
JQ WILL SUSPEND THE WG TAX ON ALL DOMESTIC
FLIGHTS OPERATED BY JQ FOR ALL DEPARTURES AND
ARRIVALS.
.
-TVL ON/AFTER 01JAN22
JQ WILL COLLECT THE WG ON ALL DOMESTIC FLIGHTS
OPERATED BY JQ AT THE OFFICIAL IATA AMOUNTS FOR
ALL DEPARTURES AND ARRIVALS.
.
SUSPENSION BELOW CANCELLED ON/BEFORE 01JAN21
.
FOR TKT/TVL ON/AFTER 12AUG20 JQ WILL SUSPEND THE
DOMESTIC SAFETY AND SECURITY CHARGE -WG- ON ALL
DOMESTIC FLIGHTS OPERATED BY JQ FOR ALL
DEPARTURES AND ARRIVALS.
.
EXCEPTION NOTE-
FOR FARE BASIS CODES XBP UBP -BPACE AND -BPACEOW
EFFECTIVE FOR SALES ON/AFTER 12AUG20 AND TRAVEL
ON/AFTER 12AUG20 AND ON/BEFORE 31DEC20 JQ WILL
SUSPEND THE DOMESTIC SAFETY AND SECURITY CHARGE
-WG- ON ALL DOMESTIC FLIGHTS OPERATED BY JQ FOR
ALL DEPARTURES AND ARRIVALS.
.
FOR FARE BASIS CODES XBP UBP -BPACE AND -BPACEOW
EFFECTIVE FOR SALES ON/AFTER 12AUG20 AND TRAVEL
ON/AFTER 01JAN21 JQ WILL COLLECT THE DOMESTIC
SAFETY AND SECURITY CHARGE -WG- ON ALL DOMESTIC
FLIGHTS OPERATED BY JQ AT THE OFFICIAL IATA
AMOUNTS.

VA:

  -  OWNER ATP / CARRIER VA

.
CHARGE TO BE COLLECTED ON ALL TICKETS/MCOS/PTAS
ISSUED FOR PASSENGERS DEPARTING ON FLIGHTS
IRRESPECTIVE OF PLACE OF ISSUE.
.
COMBINES COUNTER TERRORIST FIRST RESPONSE CHARGE
AND PASSENGER SCREENING CHARGE.
.
DOMESTIC DEPARTURES
.
FROM AU TO AU                       5.82 AUD
.
.
INTERNATIONAL DEPARTURES
.
BNE                                 24.93 AUD
.
PER TO XCH                          26.34 AUD
PER TO CCK                          26.34 AUD
.
.
VA EXEMPTIONS
.
1. TRANSFER PASSENGERS -
   A CHANGE IN FLIGHT NUMBER WHICH TAKES PLACE ON
   THE SAME CALENDAR DAY.
2. INFANTS UNDER 2 NOT OCCUPYING A SEAT ARE EXEMPT
   FROM VA CARRIER SPECIFIC WG DOMESTIC TAX.
3. VA WILL EXEMPT APPLICATION OF WG TAX FOR PTC
   STA
.
VA WILL EXEMPT PTC INE FROM THE TAX
.
KNX-MEL AND V.V. DIRECT ROUTES ARE EXEMPT FROM
THE TAX
.
.
INE SHOULD BE APPLIED THE SAME AS INF AND
CNE SHOULD BE APPLIED THE SAME AS CNN WHEN
VA IS MARKETED AND OPERATED CARRIER.

QF:

  -  OWNER ATP / CARRIER QF

.
CHARGE TO BE COLLECTED ON ALL TICKETS/MCOS/PTAS
ISSUED FOR PASSENGERS DEPARTING ON FLIGHTS
IRRESPECTIVE OF PLACE OF ISSUE.
.
COMBINES COUNTER TERRORIST FIRST RESPONSE CHARGE
AND PASSENGER SCREENING CHARGE.
.
.
DOMESTIC DEPARTURES
QF OPERATED FLTS 0400-9999 AND
EK MARKETED FLTS 5000-5999 OPERATED BY QF AND
NZ MARKETED FLTS 1700-1899/7000-7998 OPERATED
BY QF.
.
ALL AIRPORTS
-TKT ON/BEFORE 23AUG21
-TVL ON/BEFORE 13APR21              AUD  6.50
-TKT ON/AFTER 14APR21 AND
 TVL ON/AFTER 14APR21 AND
     ON/BEFORE 30SEP21               EXEMPT
-TKT ON/AFTER 14APR21 AND
 TVL ON/AFTER 01OCT21               AUD  6.50
.
-TKT ON/AFTER 24AUG21
 TVL ON/AFTER 24AUG21 AND
     ON/BEFORE 31DEC21               EXEMPT
-TKT ON/AFTER 24AUG21 AND
 TVL ON/AFTER 01JAN22               AUD  6.50
.
DOMESTIC DEPARTURES ON DOMESTIC SECTORS OF
INTERNATIONAL THROUGH FLIGHTS AND INTERNATIONAL
DEPARTURES
QF OPERATED FLTS 0001-0199 AND
EK MARKETED FLTS 5000-5999 OPERATED BY QF
.
BNE                                 AUD  3.20
CNS                                 AUD  6.50
DRW                                 AUD 13.45
MEL                                 AUD 29.76
PER                                 AUD  7.11
ADL                                 AUD  5.57
SYD                                 EXEMPT
.
NOTE -
QF 0009 AND QF 0010 BETWEEN MEL - PER
IF THE PASSENGER EMBARKS ON A QF OPERATED
INTERNATIONAL FLIGHT -QF 0009- FROM MEL TO PER
QF INTERNATIONAL WG DEPARTURE AT MEL- APPLIES
QF INTERNATIONAL WG ARRIVAL AT PER- EXEMPT
IF THE PASSENGER EMBARKS ON A QF OPERATED
INTERNATIONAL FLIGHT -QF0010- FROM PER TO MEL
QF INTERNATIONAL WG DEPARTURE AT PER- APPLIES
QF INTERNATIONAL WG ARRIVAL AT MEL- EXEMPT
.
FOR SALES ON/AFTER 22DEC20 AND TRAVEL ON/AFTER
01JAN21 QF WILL COLLECT THE WG DOMESTIC SAFETY
AND SECURITY CHARGE -WG- ON ALL DOMESTIC FLIGHTS
OPERATED BY QF FOR ALL DEPARTURE PORTS IN AU AT
AUD 6.50 FOR QF OPERATED DOMESTIC FLT 400 AND
ABOVE AND EK MARKETED FLIGHTS 5000-5999 AND
NZ MARKETED FLTS 1700-1899/7000-7998.
.
NOTE- RBD-S X AND U CLASS ALSO NEED TO BE CHANGED
TO AUD 6.50 FOR TRAVEL ON/AFTER 01JAN21 ON ALL
DOMESTIC FLIGHTS OPERATED BY QF FOR ALL
DEPARTURE PORTS IN AU.
WG TAX SHOULD NOT APPLY FOR ANY TRANSFER OR
CONNECTING POINT IN AU.
.
.
QF EXEMPTIONS FOR DOMESTIC
1.INFANTS UNDER 2 YEARS AND NOT OCCUPYING A SEAT
2.OPERATING AND POSITIONING CREW ON DUTY
3.PASSENGERS IN TRANSIT AND TRANSFER-
.
QF EXEMPTIONS FOR INTERNATIONAL
1.INFANTS UNDER 2 YEARS AND NOT OCCUPYING A SEAT
2.OPERATING AND POSITIONING CREW ON DUTY
3.PASSENGERS IN TRANSIT AND TRANSFER-
.
-TRANSFER IS INTERPRETED TO MEAN ANY CHANGE OF
 FLIGHT NUMBER /INTERLINE OR ONLINE - DOMESTIC
 OR INTERNATIONAL/ WHICH TAKES PLACE ON THE SAME
 CALENDAR DAY. IF THE PASSENGER DOES NOT DEPART
 FROM THE /TRANSFER/ POINT ON THE SAME CALENDAR
 DAY- THEN FOR THE PURPOSES OF TAX APPLICATION-
 THE EMBARKATION ON THE CONTINUING FLIGHT IS NOT
 CONSIDERED A /TRANSFER/.
 NOTE ALSO - A TRANSFER DOES NOT TAKE PLACE-
 EVEN WHEN THE PASSENGER ARRIVES AND DEPARTS FROM
 THE SAME POINT ON THE SAME CALENDAR DAY- IF THAT
 POINT IS THE TURNAROUND POINT OF THEIR JOURNEY.
.
QF WILL EXEMPT FARE BASIS CODE CFOC
FOR TARIFFS FBRINPV/FBRA23P/FBRA13P
IN RULE 0020
.
QF WILL EXEMPT THIS TAX ON FLIGHTS
QF9331/QF9332
.
QF WILL EXEMPT FARE BASIS CODES DFOC/CFOC FOR
TARIFF
FBRA3P IN RULE 0020
.
.
FOR TKT/TVL ON/AFTER 13JUL20 QF WILL SUSPEND THE
DOMESTIC SAFETY AND SECURITY CHARGE -WG- ON ALL
DOMESTIC FLIGHTS OPERATED BY QF FOR ALL DEPARTURES
AND ARRIVALS.
.
EXCEPTION NOTE -
FOR RBD X AND U CLASS EFFECTIVE FOR TKT ON/AFTER
13JUL20 AND TRAVEL ON/BEFORE 31DEC20 QF WILL
SUSPEND THE DOMESTIC SAFETY AND SECURITY CHARGE
-WG- ON ALL DOMESTIC FLIGHTS OPERATED BY QF FOR
ALL DEPARTURES AND ARRIVALS
.
FOR RBD X AND U CLASS EFFECTIVE FOR TKT ON/AFTER
13JUL20 AND TRAVEL ON/AFTER 01JAN21 QF WILL
COLLECT THE DOMESTIC SAFETY AND SECURITY CHARGE
-WG- ON ALL DOMESTIC FLIGHTS OPERATED BY QF FOR
ALL DEPARTURES FOR ALL PORTS IN AU AT AUD 5.79
.
FOR SALES ON/AFTER 14APR2021 AND TRAVEL ON/AFTER
14APR2021 AND ON/BEFORE 30SEP21 QF WILL EXEMPT
THE WG TAX FOR DOMESTIC DEPARTURES AT ALL
AIRPORTS IN AU WHEN QF IS THE OPERATING CARRIER.
.
FOR SALES ON/AFTER 14APR2021 AND TRAVEL ON/AFTER
01OCT2021- THE LATEST VERSION OF TE0654 REMAINS
IN EFFECT.
--
1.QF DOMESTIC WG IS COLLECTED FOR DEPARTURES- QF
DOES NOT COLLECT DOMESTIC WG FOR ARRIVALS.
.
2.QF APPLIES A CARRIER SPECIFIC AMOUNT FOR ALL QF
OPERATED FLIGHTS FOR ARRIVAL AND DEPARTURES FOR
NATION AU. THEREFORE- ALL OFFICIAL IATA AMOUNTS
SHOULD NOT APPLY TO QF OPERATED FLIGHTS.
.
3.ANY CARRIER SPECIFIC AMOUNTS FILED BY QANTAS
ARE APPLICABLE FOR QANTAS OPERATED AND MARKETED
DOMESTIC FLIGHTS 400 AND ABOVE AND ALL MARKETED
CODESHARE PARTNERS OF QANTAS -QF- OPERATED
FLIGHTS QF400 AND ABOVE INCLUDING EK MARKETED
FLIGHTS 5000-5999 AND NZ MARKETED FLIGHTS 1700-
1899 AND 7000-7998.
QANTAS- CODESHARE AND INTERLINE PARTNERS MUST
APPLY THESE AMOUNTS ONLY ON TICKETS SOLD ON
QANTAS OPERATED FLIGHTS.
.
4.OTHER CARRIERS ARE RESPONSIBLE FOR FILING THEIR
OWN AMOUNTS FOR THEIR OPERATED FLIGHTS AND FOR
OTHER CODESHARE MARKETED ON THEIR OPERATING
FLIGHTS.
.
WG TAX SHOULD BE EXEMPTED FOR INFANTS WITHOUT
SEAT.
.
WG TAX SHOULD NOT APPLY FOR ANY TRANSFER OR
CONNECTING POINT IN AU.

 

[dylarr]

QF's method proved to be a major pain in the rear during the year in the event that you voluntarily changed a ticket - tickets needed to be manually reissued so that the WG tax/base fare was moved around accordingly. The automation did not handle it well at all. VA on the other hand was a non issue since they didn't change the way they collected WG.

From a TA's perspective, sounds like it was a PITA to manage in GDS.

From a customer's perspective, with Classic Flight Rewards this change has been very beneficial. Firstly the WG tax was dropped completely and not absorbed anywhere else resulting in cheaper taxes and fees for reward seats. Additionally, making free voluntary changes to a booking that was already charged the WG tax to a date where it wasn't being charged resulted in the QF website actually automatically refunding the difference as well.

 

[Mattg]

Does the Velocity reward seat breakdown pre-Jan 1 include the WG charge?

I just checked and yes, it does.

 

[astrosly]

From a TA's perspective, sounds like it was a PITA to manage in GDS.

From a customer's perspective, with Classic Flight Rewards this change has been very beneficial. Firstly the WG tax was dropped completely and not absorbed anywhere else resulting in cheaper taxes and fees for reward seats. Additionally, making free voluntary changes to a booking that was already charged the WG tax to a date where it wasn't being charged resulted in the QF website actually automatically refunding the difference as well.

Not my experience, I recall one particular reward booking I had that fee applied and then booking was changed and the fee applied again (charged $7.15 to CC as I was advised it was owing after the change) and then booking was changed again and fee should not have applied but I didn't automatically get a refund. I received the e-ticket with fees for the booking stating it is $76 but payments applied to the e-ticket of $83 + 7. I called Qantas twice and had to argue for $14 to be refunded.

 

[TheInsider]

One word. Gouging.

I guess VA is gouging too then?

 

[Gold Member]

I guess VA is gouging too then?

Sure, all airlines are guilty to some extent of gouging by introducing new fees to lift their profits. But Qantas specifically has a significant history of taking the piss - think about their fuel surcharges in awards compared to most other airlines. And the countless “enhancements” propaganda marketed as customer friendly but which are in fact all about lifting profits.

 

[TheInsider]

Sure, all airlines are guilty to some extent of gouging by introducing new fees to lift their profits. But Qantas specifically has a significant history of taking the piss - think about their fuel surcharges in awards compared to most other airlines. And the countless “enhancements” propaganda marketed as customer friendly but which are in fact all about lifting profits.

Seriously?
This entire thread is about one charge that was taken away while Qantas was receiving funding for it and now they have returned the charge because the funding has stopped.
Of course they are about lifting profits, they answer to shareholders.

 

[Gold Member]

Seriously?

Yep. Nothing wrong with reminding everyone of Qantas’ record and behaviour towards their customers. Was it specifically related to the charge and funding matter of this post? Not really, just giving this community and Qantas back some truths to digest for themselves.

Happy NY TheInsider.