One could be forgiven for thinking this government doesn’t have a clue what it is doing. Take tourism, for example.
According to Richard Colbeck, tourism now accounts for 3 per cent of our GDP, supports one million Australian jobs and drives $30.7 billion in exports. It has been identified as one of five super-growth sectors that will create new jobs and growth in the economy over the next decade. As such, it was rightly put high on the agenda in the early days of the Abbott government.
In October 2013, Andrew Robb, in a speech lambasting the Labor government’s actions, announced a freeze on the Passenger Movement Charge (PMC).
“The previous government saw the PMC and increases to tourist visa charges as an easy way to raise revenue, with no consideration to its undermining effect on the competitiveness of our tourism sector. Freezing the PMC will make Australia a more competitive tourist destination for international travellers which will help to grow the Australian industry.”
Despite the Commission of Audit recommendations to slash Tourism Australia (TA) funding, the industry was one of the few winners in the 2014 budget from hell which included $130 million in base funding for TA and $13.5 million towards the Asia Marketing Fund.
Then along came the 2015 budget which removed the tax free threshold from all working holiday makers, due to become effective July 2016. They would now all pay 32.5% in income tax from the first dollar earned. The government also increased the working holiday visa (WHV) fee from $420 to $440.
This was a stupid move. It would affect around 200,000 youth travellers who visit Australia each year and spend an average of $13,000 during their stay according to ATEC Managing Director Peter Shelley. Young tourists carry out important work in rural areas that young Australians don’t want to do. The WHV is a cultural exchange between people of nations. It is not intended as an earner for a government on a tight budget.
Nevertheless, Scott Morrison kept the backpacker’s tax in his 2016 budget which announced some “key measures” to support tourism:
- Record funding for Tourism Australia of $629 million over four years. That’s a lot of money for bureaucrats when the industry could probably promote itself.
- Maintaining the current freeze on the Passenger Movement Charge. They increased it by 9% to make up for the messy September backdown on the ill-thought out backpacker’s tax.
- No increases to fees for Visitor or Working Holiday Maker visas. They increased it by $20 in the last budget.
- The announcement of a premium clearance service to international travellers within international airports, on a user-pays basis. Rich queue jumpers?
- A trial of three-year, multiple-entry visitor visas for India, Thailand and Vietnam to be implemented by July 2016 and for Chile by December 2016. Interesting choice of countries.
- Extending countries eligible for user-pays fast-track premium processing to include India and United Arab Emirates by December 2016 (subject to a preliminary evaluation of the trial currently underway for China). What checks are being “fast-tracked” here?
- Providing $115 million to Western Sydney Airport to fund preparation work – including $26 million on concept design for rail access and $89m for critical preparatory activities at the airport site. When the Commonwealth sold Sydney Airport in 2002 it included a 30-year first right of refusal to build and operate any airport within 100km of the existing terminals at Mascot. They are still waiting for the government’s Notice of Intention regarding Badgery’s Creek before they can finally evaluate if they want to invest in it.
- Doing more than ever before to protect our great tourism asset the Great Barrier Reef by providing a $171 million boost to the Reef including an additional $70 million to the Reef Trust, bringing it to a total $210 million. Whilst pushing ahead with increased production and shipping of the fossil fuels that are killing the Reef.
- Providing $50 million over 4 years to promote Australian wine overseas and wine tourism within Australia. I am sure enterprising producers, marketers, and tourist operators could achieve this without us having to pick up the grog bill for endless dinners for politicians and their mates.
- Tax cuts that will benefit tourism operators – including a cut to the company tax rate for small businesses to 27.5 per cent from 1 July and in recognising that not all small businesses are companies, the unincorporated tax discount will be increased from 5 per cent to 8 per cent from 1 July 2016. Tax cuts don’t bring customers.
- Over the next decade the small business tax rate will be extended to all companies and then progressively reduced to 25 per cent by 2026. The unincorporated tax discount will be progressively increased to a final discount rate of 16 per cent from 2026. Once again, tax cuts for businesses don’t make tourists come and it is highly unlikely that they will get through the Senate anyway.
Considering this is such an important industry for Australia, one would think our government would be eager to seek expert advice on planning for the future. But that isn’t the way this government works.
In May this year, UNESCO produced a report titled World Heritage and Tourism in a Changing Climate. Instead of heeding their warnings so we can adequately prepare, our government insisted that all mentions of Australia, the Great Barrier Reef, the Northern Territory’s Kakadu national park and Tasmania’s forests be removed from the report. Their argument was that the report was “negative commentary” that “impacted on tourism”. The approach seems to be maintain the lie that everything is just fine and dandy. I guess they figure that the reef will finally die on someone else’s watch so ‘not my prob’.
Their Country
The love of wealth and power, of coal seam gas and mines,
Of working without unions or carbon output fines.
Strong love of Gina Rinhehart, Murdoch and their IPA
We recognise who’s talking in government today.
Scourge of my heart, my country, being sold for a pot of gold,
For flood and fire and famine, will now increase threefold –
Over the thirsty paddocks, watch, after many days,
The filmy veil of pollution that thickens as we gaze.
Scourge of my heart, my country, ignoring the experts cry
When sick at heart, around us, we watch our planet die –
But rather than take action, to protect our country’s health
You sell us to polluters and think that money’s wealth.
Our wealth lies with our children and Nature’s beauty that we share,
With safety and security. clean water and clean air,
With caring for each other and helping when we can.
With tolerance and kindness and love for fellow man
An open-hearted country, a welcome, caring land
Where all can find safe haven and someone to understand
Though life holds many setbacks, and troubles for us all,
We must care for each other and pay heed to Nature’s call.
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