Proposal to reduce flight passenger security levies

A proposed reduction to flight passenger security levies will generate millions of dollars in annual savings for the aviation sector and meets the Government’s commitment to reduce levies once the sector’s regulator had stabilised post-Covid, Associate Transport Minister James Meager says. The Civil Aviation Authority (CAA) is consulting on a proposed 5% reduction to domestic and international passenger security levies following faster than expected recovery of its cash reserves. “Improvements in CAA’s security operations and its overall financial position means it is now in the position to charge airlines less while continuing to meet aviation security expectations and performance targets,” Mr Meager says. “On current projected passenger volumes, CAA estimates the proposed reduction would reduce levy collections by a cumulative $70.935 million by 2032. The impact of a saving like that for airlines and wider aviation sector would be huge.” The proposal would reduce the domestic passenger security levy from $10.91 to $10.36 per passenger and the international levy from $22.30 to $21.19 per passenger, excluding GST. “At an individual passenger level, the amount may feel modest, but w