More efficient passenger processing hasn’t reduced movement charges.

Although the Australian government has passed legislation that will see Customs and Quarantine move to a risk-based passenger processing approach, the Passenger Movement Charge continues to over-collect revenue.

Under the new laws, low risk products such as commercially-prepared packaged food will be exempt from declaration at Australian borders, according to the Tourism & Transport Forum (TTF).

Even though international visitors will be able to pass through customs in a more timely fashion, TTF director aviation policy Justin Wastnage said the PMC is being used as a revenue raiser and the industry is feeling the effects of this imposition.

“The PMC is designed to cover the costs of processing passengers at our borders and carry out our biosecurity checks; however this tax will over-collect by $560 million this financial year alone,” Mr Wastnage said.

The PMC was increased to $55 in July 2012.

TTF has called for the PMC to be reconfigured as a more genuine user charge for border services, in order for Australia to remain a competitive tourism destination.

“Streamlining passenger facilitation is a step in the right direction but it must be coupled with an acceptable Passenger Movement Charge,” Mr Wastnage said.

The TTF has estimated that the PMC currently cuts spending by inbound visitors by $814 million per year.