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Industry welcomes move to take PMC off the table

November 9, 2016 Business News No Comments Email Email

The Australian Tourism Export Council (ATEC) welcomes reports that Labor and the Crossbench will take the proposed $5 increase to the Passenger Movement Charge (PMC) off the table, along with proposals to amend the Government’s 19% backpacker tax to 10.5%.

“Taxing visitors comes with all kinds of complications for our industry and sends a very negative message to the highly competitive international visitor market,” ATEC Managing Director, Peter Shelley said today.

“Tourism export is Australia’s great success story and holds outstanding future potential, with growth in international spending recording double digits year after year, so any policy move that detracts from our competitiveness is highly risky,”

“Moves by Labor and the Crossbench to create a better policy platform for our industry are very welcome and we are particularly supportive of removing the $5 increase to the PMC, as we have argued previously.

“ATEC fails to see how increasing tax measures would produce a positive outcome for the tourism industry and, the significant contribution it makes to the Australian economy.

“Unfortunately, this protracted uncertainty and lack of clarity is having a negative impact on traveller’s perception of Australia.

“The PMC should never have been bundled in with the Working Holiday Maker reform package and we believe the Government should consult further with industry on any future proposed tax changes in order to ensure we are setting the right policy agenda and maximising our export tourism potential.”

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