The effects of the coronavirus have subsided and migration to countries around the world has almost returned to before-coronavirus status. Australia, as a tourism nation, also has approximately 7.4 million visitors in the 12 months data to June 2024. Although not as many as before, foreigners still want to experience the majestic Australian nature, and the number of visitors to Australia is one of the highest in the world.
However, during the Corona period, there were calls for overtourism in Australia as a reaction to the suppression of freedoms and the opening of gates to countries around the world, allowing people to come and go as they please.
As part of the measures to combat this, taxation of foreign visitors is an unavoidable issue. Below we take a deeper look at tourism taxation in Australia.
Australia has not introduced a specific ‘tourism tax’ (tourism tax) for international visitors, although some relevant taxes and fees may apply to tourists.
1)Goods and Services Tax (GST) and the tourist refund system
The Goods and Services Tax (GST), Australia’s sales tax, applies at 10% on all goods and services. The tax is imposed on both domestic and foreign consumers, but international tourists are entitled to a refund under certain conditions. This refund scheme is called the Tourist Refund Scheme (TRS) and is available on departure from the airport.
TRS main terms and conditions:.
Purchases of goods totalling $300AUD or more.
You must leave Australia within 60 days of the purchase.
If you need to take the purchased goods as hand luggage (e.g. clothes, cameras, etc.).
At the TRS, you can apply for a refund of GST on the goods purchased and Wine Equalisation Tax (WET) on wine and other goods. This can be done at TRS counters at airports and seaports, and refunds can be received by credit card or bank transfer.
2)Additional charges at tourist attractions and accommodation
Some tourist attractions and accommodation establishments charge tourists specific fees. These charges are not directly ‘tourism taxes’, but in areas where tourism has a significant impact on the local economy, there has been a move to introduce such additional charges in the form of a tourism tax.
E.g. Environmental Levy: sometimes introduced to cover the costs of maintaining nature reserves and national parks in particular. For example, a surcharge may be imposed on tourism on the Great Barrier Reef in the form of a ‘Reef Tax’. This is to fund environmental conservation activities and the maintenance of protected areas.
Municipal charges on accommodation: in some cities and states, an additional charge may be levied on the use of accommodation, in a form similar to the Accommodation Tax, to increase local revenue while reducing the impact on the tourism destination.
3)Airport taxes and fees included in your ticket
When departing from Australia on an international flight, there are usually several charges included in the ticket. These include a ‘Passenger Movement Charge’ (PMC), which is the equivalent of a departure tax and applies to all departing passengers, not just international visitors. As of 2024, this PMC costs USD 60 (approximately JPY 6,000) and is included by airlines in the ticket price.
4)Burden reduction policies in tourism destinations and discussions on the introduction of future tourism taxes
The Australian Government and the tourism industry have discussed the introduction of a tourism tax on several occasions to reduce the burden on tourism infrastructure and environmental protection. In particular, in areas where overtourism (pressure on the environment and infrastructure due to increased tourism) is a problem (e.g. Tasmania and the Great Barrier Reef), some have proposed a tourism tax with the aim of returning tourism revenue to nature conservation and infrastructure development.
Background to the debate on introducing a tourism tax:.
Reducing environmental impact: Australia has a very rich natural environment and the environmental impact of tourism is a serious issue. Further taxes and fees are being considered to reduce the impact of tourism, particularly on natural heritage sites such as the Great Barrier Reef.
Funding infrastructure: in some popular tourist destinations, the cost of maintaining infrastructure (roads, toilets, tourist facilities, etc.) is not matched by tourism revenues, and proposals have been made to stabilise the local economy by introducing a tourism tax to compensate for this.
5)State and regional initiatives
Each state and territory of Australia has its own tourism policy, and each sets its own tourist-related taxes and fees. For example, in certain tourist destinations in New South Wales and Queensland, local governments may set tourism-related fees. These fees help to mitigate the impact of tourism on local communities and fund sustainable tourism.
At present, Australia does not have a national tourism tax, but GST, departure taxes and certain environmental charges apply to tourists. In some areas, the introduction of a tourism tax for environmental protection and infrastructure development is being discussed for the future. When visiting as a tourist, it is important to understand these costs and policies and factor them into your travel plans.
