Departure taxes in Oz under lens

About 1.2 million New Zealanders travel to Australia every year. Photo / Sarah Ivey

Passenger charge review follows intensive lobbying from business and tourism groups.

Passanger departure taxes in Australia are being reviewed following a campaign to have the A$55 ($61) charge cut to help stimulate more transtasman travel.

Australia's Immigration and Border Protection Minister Scott Morrison has announced the Australian customs and border agencies would carry out the review of the services - which include charging - and was now seeking written submissions from the travel and tourism industry during the next few months.

He said after the tax office, immigration and border protection was the "biggest tax collector" in the country, gathering about A$3 billion in revenue each year.

Airport and security charges in New Zealand are around $35.

Australia's Tourism and Transport Forum (TTF) said the passenger movement charge was the highest departure tax in the developed world for short-haul flights.

The charge added "a significant burden to the cost of an airfare for visitors from important source markets like New Zealand and Indonesia".

While the minister's announcement doesn't say the fees will necessarily be cut, the review follows intensive lobbying by the forum and other business and tourism groups, including some from this country. The Abbot government has pledged not to raise the departure charge during its first term.

TTF acting chief executive Trent Zimmerman said the review must consider reducing the burden of taxes and charges on visitors to make the sector more internationally competitive.

"If the Government is serious about tourism's role as an economic development strategy, this review must look at the impact of taxes like the passenger movement charge on the sector," Zimmerman said.

The forum is also pushing for "a domestic-like travel experience" at international airports in Australia and New Zealand through the streamlining of border formalities on exit and entry and opening of additional points of entry at regional airports in Australia.

About 1.2 million New Zealanders travel to Australia every year and 1.17 million Australians make short-term trips here.

Travel Agents Association NZ chief executive Andrew Olsen said the Australian charge was not a major deterrent at current levels but any reduction would be welcomed.

From next April Britain will cut taxes on ultra longhaul flights by up to 52 ($104) a passenger.