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Coalition forces Gillard Government backdown on tourism tax take

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Media Contact: Greg Pierce Coffs Harbour: 02 6652 6233 Canberra: 02 6277 4447 Mobile: 0408 532 785


20 June, 2012

Coalition forces Gillard Government backdown on tourism tax take

The North Coast tourism industry has received a modest reprieve after the Coalition forced the Gillard Government to back down on its Budget plan to index the tax on international passengers, Federal MP Luke Hartsuyker said today.

With the Coalition proposing an amendment which would have stopped the $55 dollar charge being indexed, the Government has now saved itself from an embarrassing defeat of budget bill.

“Indexing the Passenger Movement Charge would have slugged the struggling tourism industry with another cost.

“They are already struggling from higher costs and they will soon be hit with carbon tax.

“The Government had failed to understand that indexing the charge not only raised the cost for international tourists, but there was a knock on effect to the restaurants, cafes and hotels that depend on overseas trade.

“In the end tourists only have so much money to spend. If the government is increasing its tax take then there is less money to spend on other parts of their visit.

“This would have had an impact on tourism sector right across the nation, including the North Coast.

“I congratulate the tourism industry which highlighted the impact through their “Stop Taxing Tourism” campaign.”