The Australian Government is being accused of a “backdoor tax grab,” after it announced those looking to renew or get a new 10-year Australian passport will have to pay $412 in the new year starting January 1, 2025.
According to a labor government spokesperson, the cost of five-year passports for children and seniors over 75 will increase to $208, while a replacement passport will be upped from $259.
Simon Birmingham, who has served as a Liberal Party Senator for South Australia, slammed the decision as an “over-the-top revenue-raising,” which will raise the expense of an overseas holiday even further amid a cost-of-living crisis.
He said many Australians scrimp and save to afford a special holiday only to find the cost of a passport is similar to the cost of an airfare.
Under Labor, Australians pay record sums for the privilege of a passport, which should be a basic entitlement rather than an expensive luxury. What the Albanese Government labeled a” modest “increase to passport fees can now clearly be seen as the backdoor tax grab.”
According to records submitted to parliament earlier this year, the 15% application fee increase introduced on July 1 was expected to generate $924.5 million in revenue and $529 million in profit.
Back Door Tax Grab
Senator Birmingham accused the Albanese Government of ringing in the new year with another “backdoor tax grab”.
He said that rather than responsible cost recovery, the Albanese Government is engaging in gross profiteering by pushing up passport fees, charging significantly more than the cost of production. Australians are being made to pay for Labor’s out-of-control spending.
Assistant Foreign Minister Tim Watts said the indexation requirements had “been the case under successive governments over many years,” and defended the July price rise.
“The Albanese government understands Australians are doing it tough, and we are working every day to take pressure off families – all while Peter Dutton has opposed every one of our cost of living relief measures,” he said.
Last year, the government announced a one-off rise in the price of passports to support priority initiatives, including efforts to ensure that Australia can stay ahead of the game in addressing rapidly evolving and more sophisticated threats to identity security.”
Australian Passport is 5th most powerful.
A Department of Foreign Affairs and Trade spokesperson said annual indexation is a requirement under the legislation and that Australian passports are some of the best globally.
“The Australian passport is respected internationally as a high-quality travel document,” they said.
It has a high technological sophistication, backed by rigorous anti-fraud measures, ensuring its integrity. This is a key reason why Australian passport holders receive visa-free access to over 180 countries.”
According to the 2024 Henley Passport Index, Australian passports are the fifth most powerful globally, with visa-free access to 189 countries, and Singapore is number one, with visa-free access to 195 countries.
As of July 16, 2024, the top passports in the world are:
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SingaporeHolders can travel to 195 countries and territories without a visa or with a visa on arrival.
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Japan, France, Germany, Italy, SpainHolders can travel to 192 countries and territories without a visa or with a visa on arrival.
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Austria, Finland, Ireland, Luxembourg, Netherlands, South Korea, SwedenHolders can travel to 191 countries and territories without a visa or with a visa on arrival
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Belgium, Denmark, New Zealand, Norway, Switzerland, United KingdomHolders can travel to 190 countries and territories without a visa or with a visa on arrival
The Henley Passport Index ranks countries based on how many countries their citizens can visit without a visa. The index is based on data from the International Air Transport Association (IATA) and research from Henley & Partners.
