New Zealand airfares will rise - NZD22 in new taxes

[serfty]

International airfares will rise new departure tax

...International airfares will rise after the Government announced in Thursday's Budget that it will sting passengers with $22 in arrival and departure taxes.


A "border clearance levy" of $16 for arriving passengers and $6 for departing passengers will be introduced from the start of next year, although the exact amounts will be subject to public consultation.


The new tax would come on top of existing airport charges.


Auckland International Airport charges airlines a $25 "passenger service charge" to pay for terminal and infrastructure costs, which airlines pass on through airfares. Other New Zealand international airports have similar charges.


Other existing taxes include include a $1.50 Civil Aviation Fee and a $12 Aviation Security Service fee.


Primary Industries minister Nathan Guy said the new tax will go towards pest, disease, illegal drug and contraband border protection. ...

They used to have the NS$25 departure stickers at AKL (that's the airports's own tax/levy) that was replaced by the KK levy with half levied eac way. This new tax adds to that $25 or so to a return ticket to NZ, so now it's NZ$47 in government/airport levies before anything else.

 

[AustraliaPoochie]

New Nzd$16 to enter NZ (read ENTRY TAX) and Nzd$6 to exit??? Just read online in the

... newspaper online version.
There goes my way to amass SC.
Bugga.
Just when I read some good news about Air NZ, this one comes up.
Another new tax on travellers to NZ.
Pity.

 

[Grimace1]

Re: New Nzd$16 to enter NZ (read ENTRY TAX) and Nzd$6 to exit??? Just read online in

But wouldn't the entry tax be part of the actual airfare??

 

[Deleted member]

Re: New Nzd$16 to enter NZ (read ENTRY TAX) and Nzd$6 to exit??? Just read online in

where did you read this?

 

[opusman]

Re: New Nzd$16 to enter NZ (read ENTRY TAX) and Nzd$6 to exit??? Just read online in

It seems to be this story:

International airfares will rise after the Government announced in Thursday's Budget that it will sting passengers with $22 in arrival and departure taxes.

A "border clearance levy" of $16 for arriving passengers and $6 for departing passengers will be introduced from the start of next year, although the exact amounts will be subject to public consultation.


The new tax would come on top of existing airport charges.

All up it'll be around $90 in AU+NZ taxes to fly to NZ and back

 

[RooFlyer]

Re: New Nzd$16 to enter NZ (read ENTRY TAX) and Nzd$6 to exit??? Just read online in

Thanks for the clear explanation, opusman.

 

[Mattg]

Re: New Nzd$16 to enter NZ (read ENTRY TAX) and Nzd$6 to exit??? Just read online in

This is not a welcome change.

 

[TomVexille]

Re: New Nzd$16 to enter NZ (read ENTRY TAX) and Nzd$6 to exit??? Just read online in

Well the argument seems to be that it's costing the NZ taxpayers $100mil a year so this is to recover that. It's not great for me as I try and get a couple times a year. At $22/pax that's going to take 4.5 million return pax a year.

At least it's still cheaper than Australia

 

[astrosly]

Re: New Nzd$16 to enter NZ (read ENTRY TAX) and Nzd$6 to exit??? Just read online in

Is this not applied to all airlines, or only Qantas? Wondering why it is in the QFF discussion board.

 

[Mattg]

Re: New Nzd$16 to enter NZ (read ENTRY TAX) and Nzd$6 to exit??? Just read online in

Well the argument seems to be that it's costing the NZ taxpayers $100mil a year so this is to recover that. It's not great for me as I try and get a couple times a year. At $22/pax that's going to take 4.5 million return pax a year.

At least it's still cheaper than Australia

But any tax they put on international passengers will make NZ a slightly less attractive destination. I thought the idea was to keep taxes as low as possible to encourage tourism. I recall reading that the average visitor to NZ spend about $1.5K-2K.

Does anyone remember when they had the $25 departure tax you had to pay at check-in?

 

[Spongbob]

Re: New Nzd$16 to enter NZ (read ENTRY TAX) and Nzd$6 to exit??? Just read online in

Is this not applied to all airlines, or only Qantas? Wondering why it is in the QFF discussion board.

Because Qantas fly to NZ; is any other reason needed?

 

[TomVexille]

Re: New Nzd$16 to enter NZ (read ENTRY TAX) and Nzd$6 to exit??? Just read online in

But any tax they put on international passengers will make NZ a slightly less attractive destination. I thought the idea was to keep taxes as low as possible to encourage tourism. I recall reading that the average visitor to NZ spend about $1.5K-2K.

Does anyone remember when they had the $25 departure tax you had to pay at check-in?

Of course. But most people either won't read this or will forget quickly.

As for the $25 departure tax, that is an airport fee and it's still there. It's just been integrated into the ticket prices.

 

[TomVexille]

Re: New Nzd$16 to enter NZ (read ENTRY TAX) and Nzd$6 to exit??? Just read online in

Is this not applied to all airlines, or only Qantas? Wondering why it is in the QFF discussion board.

It would be all airlines

 

[medhead]

Re: New Nzd$16 to enter NZ (read ENTRY TAX) and Nzd$6 to exit??? Just read online in

Is this not applied to all airlines, or only Qantas? Wondering why it is in the QFF discussion board.

Because Qantas sc are all important, even if they don't fly 767s to AKL, there is always the wonderful EK and LAN option, make sure you book the QF codeshare to get the all important SC, 737s are the worst aircraft ever, us points plus pay to get the all important SC, earn points with VGW or QCC.

 

[Revolio]

Re: New Nzd$16 to enter NZ (read ENTRY TAX) and Nzd$6 to exit??? Just read online in

Rumour emerging out of Waverley Council Chambers this morning is a residential tax for those holding NZ passports in Campbell Parade is to be introduced early next year to coincide. 2% of the revenue will be directed to the Chappell Institute of Underarm Bowling. If this is true, I know which tax will raise the most.

 

[Altair]

Re: New Nzd$16 to enter NZ (read ENTRY TAX) and Nzd$6 to exit??? Just read online in

There was a thread on this on teh other international frequent flyer site.

This was a Budget 2015 measure that many commenters recognise as back flips from the government, eg. taxation on international airfares, cost for bio-secuirty.
The existing fees covered passenger security only, AKL divided its 26 equally in arrival/departure charges, WLG, CHC, ZQN, DUD all have it as part of the departure costs.
The 2015 increases are tagged for Biosecurity, with costs as part of industry agreement to be bourne by the government. This is now changed and passed to airlines to recover costs from passengers.
Whether this is to fund new biosecurity initatives or just a revenue grab to cover the ongoing deficits is covered in this post.

Looking at the Treasury Budget 2015 (Primary Sector), covering 2015-16 year, you will see that the appropriations for Border and Biosecurity Risk Management has increased to 179 million from 96.4 million (for Border only) and 74.9 million (for Domestic only) for the current year. It seems these categories have been merged.

You then have to add Policy Advice, static at around 2.5 million, development and implementation
Government accounting is complicated, but money goes into the Crown Consolidated fund then allocated out via appropriations.
There is a line for new Capital Injections across the whole of the Vote for Primary Industires but you cannot track it down to a specific project.
You will see that the combined appropriation for biosecurity has only increased by 7.6 million (171.3 to 178.9) p 70 or 40 on the pdf. So either the increased revenue and expense have not been recognised (possible as Cabinet approvals not yet given) or that this is in fact a revenue substitution from general taxation to a user fee revenue (probable allowing general revenue to be allocated elsewhere or make up funding shortfall eg deficit).

IMO it is a revenue grab from a demographic that would not change its vote from the current government.:-|

 

[RichardMEL]

Re: New Nzd$16 to enter NZ (read ENTRY TAX) and Nzd$6 to exit??? Just read online in

Yes, I remember the collection of the departure tax at the airport. What a PITA to check in, then you had to go upstairs(IIRC) at AKL, line up, pay the bloody tax to get a sticker on your BP to prove you'd paid it, then you could go through security. The best thing was moving that collection to the carriers via the ticket price, like most other places do.

 

[opusman]

Re: New Nzd$16 to enter NZ (read ENTRY TAX) and Nzd$6 to exit??? Just read online in

You had to pay it at the Amex office or something weird I seem to remember? Very odd system.

 

[Hvr]

Re: New Nzd$16 to enter NZ (read ENTRY TAX) and Nzd$6 to exit??? Just read online in

<snip>

As for the $25 departure tax, that is an airport fee and it's still there. It's just been integrated into the ticket prices.

Actually it is a Passenger Movement Charge and "The Australian Customs and Border Protection Service (Customs and Border Protection), on behalf of the Commonwealth, has administrative responsibility to manage the PMC."

"The current rate of the PMC is $55."

More information here: Passenger movement charge (PMC)

Quotes in italics are copied directly from the website above.

 

[AustraliaPoochie]

Re: New Nzd$16 to enter NZ (read ENTRY TAX) and Nzd$6 to exit??? Just read online in

At least we hope it will be included in airfares.
Compared to going to DPS, a direct narrow flight from ADL though, but in the end, its cheaper to visit DPS than NZ.
Only thing I fear is getting "the point" to go that way, on coming back.
So far on my sojourns to NZ, I have not as yet been picked upon on return to Australia, to go that way, and then get the full "kit and kaboodle".
Came back from SIN once, as an Australian passport holder, and got the full treatment.
Not as bad as a Malaysian passport holder with Australia PR, that one was worst.
Sorry about it, had to post fast this OP.
Would I stop going to NZ, most likely not, but maybe less trips over the pond each year, ...
To earn the most QF SC on QF, that EK flight is the best one, apart from LA which now earns less all round. Unless you can nab a QF flight number on the LA service SYD - AKL which is not all that often.
***Didnt realise it was discussed elsewhere on the AFF website.***