The Australian Aviation Associations Forum (AAAF), made up of Australia’s national peak aviation bodies, has expressed alarm at the increased fuel tax to start from today and the lack of Government understanding of likely industry impact.
Independent Chair of the Forum, Chris Manning, indicated that industry would have to look closely at passing on the new charge to the travelling public as the estimated cost to industry was in excess of $20 million per year.
“The surprise announcement of a 25% increase in fuel tax in the budget has perplexed an industry that is committed to safety but which must keep a close control on any additional costs.
“The alarm of the industry is due to the fact this new tax came without any consultation, negotiation or government understanding of the potential impact on operators, particularly regional and smaller aviation companies.
“The Forum expressed concern that the tax was inequitable as the domestic sector alone was being forced to pay the tax, despite the funding being used for CASA positions that are not solely dedicated to domestic aviation.
“The Forum feels very strongly that any increase in taxation for CASA should be preceded by a stronger efficiency drive within CASA. Industry personnel at the coal face working with CASA daily identify more efficient and less costly means of CASA delivering the same or improved services, but Government has no framework to work with industry on improved efficiency.
“The Forum identified the lack of a coherent aviation industry consultation framework on matters of taxation and efficiency of CASA as a failure of the Government.
“The Forum agreed that the size of the overall portfolio of Infrastructure, Transport, Regional Development and Local Government was simply too large for one Minister and would benefit from splitting off aviation or even transport into a separate portfolio.
“The Forum makes it clear that it would like to work with Government on aviation policy and improvements, but that it currently lacks a peak consultative mechanism with the Minister, as witnessed by this new tax blindside.”