Yahoo Finance Federal Budget 2024: Aussies urged to apply for new passports before major price hike
Anybody needing a new Australian passport has merely seven weeks to apply, ahead of the increases that'll kick in on July 1.
Aussies planning on going on an overseas trip within the next 12 months are being urged to plan ahead and organise new passports now. Fresh fees for international travellers are set to come into effect in July.
The Australian passport is already one of the most expensive in the world and went up with indexation on New Year's Day. But, last year it was announced the price of an Australian 10-year adult passport would increase again on July 1 by 15 per cent from $325 to $373.75 — a rise of almost $50.
"If you’re planning to go on an international trip within the next 12 months and your passport is up for renewal, it’s best to get a new one before July 1 so you can avoid the extra fee," Finder's travel expert Gary Ross Hunter told Yahoo Finance.
Find out how the 2024 Federal Budget will impact you by following Yahoo Finance’s coverage here.
The government is set to announce the 2024 Federal Budget on Tuesday and said it is "focused" on combating the cost-of-living crisis that has much of the country in a chokehold.
Treasurer Jim Chalmers said the "relatively modest" changes to passport fees were to ensure "we can resource our systems".
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"This one-off increase is all about making sure that we can resource our passport systems and make them modern and fit for purpose… especially at a time where there are ongoing threats to people's security and their identity," Chalmers said in December.
According to the Mid-Year Economic and Fiscal Outlook for 2023-24, revenue of $349 million over three years from 2024–25 raised from this measure will be redirected to support priorities in the Foreign Affairs and Trade portfolio.
Cost-of-living squeezing Aussies on travel
Australians have been pulling back on spending as inflation puts pressure on the household budget.
But fresh data from Finder revealed that Australians are still booking holidays they can't afford.
A recent survey revealed 15 per cent of respondents — equivalent to three million people — have booked a holiday they couldn't afford in the last 12 months. Seven per cent had to borrow money from family or friends in order to go abroad, while 4 per cent decided to cancel.
Four per cent of respondents, equivalent to more than 800,000 people — went into debt to finance their holiday.
Hunter said passport fees were just one reason the cost of travel was increasing.
"There are several factors driving up flight costs. Pent-up demand for travel means airlines can get away with charging more," he said.
"Airlines are also experiencing staffing shortages after dismissing thousands of crew during the pandemic. Increasing costs for fuel are a factor too, and the general rise in cost of living also increases airline input costs for in-flight food."
But many are simply going without as cost of living rises "put a dent in holiday spending".
"Travel is a luxury many cannot justify right now. With rising interest rates and the steep cost of necessities such as food and fuel, discretionary spending inevitably takes a back seat.
If travelling is a priority for you, make it an item in your budget and save for it."
