'Backdoor tax grab': why passport prices are rising
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Price hikes have been a common theme lately, but this latest increase is raising more than just eyebrows.
What seemed like a simple adjustment is part of a much larger shift with significant implications.
The reasoning behind this change has sparked plenty of debate.
Starting 1 January, Australians have seen an increase in the cost of obtaining a new passport, with prices rising by 3.5 per cent due to indexation.
Australia's passports, now the most expensive globally, are priced higher than those of Mexico ($353.90), the USA ($252.72), and New Zealand ($193.72).
What Will Passports Cost Now?
An adult passport, valid for 10 years, will now cost $412, up from $398.
For children, a five-year passport will be priced at $208.
Replacement passports have increased to $259.
Has Passport Prices Already Increased?
Yes. These hikes follow a 15 per cent increase in July, when passport prices rose from $346 to $398.
Treasurer Jim Chalmers stated the price increase was projected to raise $349 million over the next three years, with the funds allocated to covering the rising production costs of passports.
Why Has the Government Raised the Price?
A spokesperson for the Department of Foreign Affairs and Trade explained that passport fees are indexed annually on January 1 in line with the Consumer Price Index.
'The Australian passport is respected internationally as a high-quality travel document. It has a high level of technological sophistication, backed by rigorous anti-fraud measures, which ensures its integrity,' the spokesperson said in a statement.
'This is a key reason why Australian passport holders receive visa-free access to over 180 countries.'
Education Minister Jason Clare addressed reporters on 30 December, explaining that the government is focused on costs that impact Australians daily.
Changes Coming into Effect
Some new laws were set to come into effect when the clock struck midnight.
'So making sure that the cost of medicine doesn't go up is going to help millions of Australians, giving a pay rise to aged care workers is going to help hundreds of thousands of Australians, and rolling out free TAFE courses across the country is going to help an extra 100,000 Australians next year and every year after that,' he said.
'They're the sorts of things we're focused on to help Australians with the cost of living.'
The Opposition's Reaction
In November, in response to the hikes, Opposition Senate Leader and former finance minister Simon Birmingham criticised the increase, calling it a 'backdoor tax grab'.
'Under Labor Australian passport fees have gone up 22.5 per cent,' he said.
'What the Albanese government labelled as a "modest" increase to passport fees is now seen for the backdoor tax grab that is it.'
Big changes are sweeping across Australia this year, and some of them might just impact your everyday life more than you think. From new financial measures to shifts in government policies, the effects are being felt nationwide.
In a previous story, we explored how the latest passport price hikes are part of a broader trend. Read the full article for a breakdown of the key policy changes coming in 2025.
What do you think? Is this price hike justified, or will this be a burden for everyday citizens? Share your thoughts in the comments below.
What seemed like a simple adjustment is part of a much larger shift with significant implications.
The reasoning behind this change has sparked plenty of debate.
Starting 1 January, Australians have seen an increase in the cost of obtaining a new passport, with prices rising by 3.5 per cent due to indexation.
Australia's passports, now the most expensive globally, are priced higher than those of Mexico ($353.90), the USA ($252.72), and New Zealand ($193.72).
What Will Passports Cost Now?
An adult passport, valid for 10 years, will now cost $412, up from $398.
For children, a five-year passport will be priced at $208.
Replacement passports have increased to $259.
Has Passport Prices Already Increased?
Yes. These hikes follow a 15 per cent increase in July, when passport prices rose from $346 to $398.
Treasurer Jim Chalmers stated the price increase was projected to raise $349 million over the next three years, with the funds allocated to covering the rising production costs of passports.
Why Has the Government Raised the Price?
A spokesperson for the Department of Foreign Affairs and Trade explained that passport fees are indexed annually on January 1 in line with the Consumer Price Index.
'The Australian passport is respected internationally as a high-quality travel document. It has a high level of technological sophistication, backed by rigorous anti-fraud measures, which ensures its integrity,' the spokesperson said in a statement.
'This is a key reason why Australian passport holders receive visa-free access to over 180 countries.'
Education Minister Jason Clare addressed reporters on 30 December, explaining that the government is focused on costs that impact Australians daily.
Changes Coming into Effect
Some new laws were set to come into effect when the clock struck midnight.
'So making sure that the cost of medicine doesn't go up is going to help millions of Australians, giving a pay rise to aged care workers is going to help hundreds of thousands of Australians, and rolling out free TAFE courses across the country is going to help an extra 100,000 Australians next year and every year after that,' he said.
'They're the sorts of things we're focused on to help Australians with the cost of living.'
The Opposition's Reaction
In November, in response to the hikes, Opposition Senate Leader and former finance minister Simon Birmingham criticised the increase, calling it a 'backdoor tax grab'.
'Under Labor Australian passport fees have gone up 22.5 per cent,' he said.
'What the Albanese government labelled as a "modest" increase to passport fees is now seen for the backdoor tax grab that is it.'
Big changes are sweeping across Australia this year, and some of them might just impact your everyday life more than you think. From new financial measures to shifts in government policies, the effects are being felt nationwide.
In a previous story, we explored how the latest passport price hikes are part of a broader trend. Read the full article for a breakdown of the key policy changes coming in 2025.
What do you think? Is this price hike justified, or will this be a burden for everyday citizens? Share your thoughts in the comments below.
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