The Tax Barometer is composed of four trip elements: lodging, car rental, meals, and airport arrival and departure.  Each element of the trip is priced according to a standard purchase by a hypothetical "WTTC Traveler" in each destination.  This trip includes the purchase of four nights' lodging, four days' car rental, twelve meals, and one set of international arrival and departure airport charges. Taxes imposed on these purchases are then identified, recorded, and developed into a sector index.  Next, these elements are aggregated into a composite index for the destination, based on the average cost of each element included in the standardized trip.  If you would like more information on the development of the Tax Barometer, please refer to our research methodology.

Rank

Total tax $ for 5-day/4-night trip: $165.20 25
Percentage of total item cost: 16.65% 33
Overall tax index:

1212

52

The first item in the above table represents the combined tax total paid by the WTTC Traveler in each of the four sectors in Sydney.  The second item (percentage of total item cost) indicates what percentage of the total bill is devoted to taxes.  The last item (overall tax index) reflects the cumulative change in the amount of tax paid in U.S. dollars between June 1994 and June 2002.  The rankings show how Sydney compares with other Tax Barometer cities; a ranking of 1 is most competitive, while a ranking of 52 is least competitive.

Summary: Sydney currently has an overall Tax Barometer index of 1212, indicating a 1112% increase in travel-related taxes since June 15, 1994, the highest increase among all 52 surveyed destinations.  This change can be attributed to increases in each of the four monitored travel sectors, the result of the introduction of a 10.00% GST.  For a five-day, four-night trip to Sydney, travelers can expect to pay approximately $165.00 in tourism-related taxes, a total that ranks as the 28th highest among all surveyed destinations.

 

Rank

Average price for 4-day rental (mid-size) without taxes: $146.65

-

Airport access fee: 10.00% -
Goods and services tax (GST): 10.00% -
Stamp tax: 2.00% -
Vehicle registration recovery fee (per day): AUS$ 2.59 -
Total charges for 4-day rental with taxes: $188.40 -
Total tax $ for 4-day rental: $41.75 25
Percentage of total car rental cost: 22.16% 34
Car rental tax index: 1898 52


Summary:  Car rental taxes have risen 1798% in Sydney since 1994, the highest increase among all 52 surveyed destinations.  This change can be attributed to the introduction of several taxes that were not charged in the base index.  These include: an airport access fee (2000), goods and services tax (2000), stamp tax (2001) and vehicle registration recovery fee (2001).  Tax charges on a four-day mid-sized car rental total approximately $42.00, an amount that ranks as the 25th lowest among all surveyed destinations.

 

Rank

Average price for 4-nights lodging without taxes: $388.57

-

Goods and services tax (GST): 10.00%

-

Total charges for 4-nights lodging with taxes: $427.43

-

Total tax $ for four-nights: $38.86

14

Percentage of total hotel room cost: 9.09%

18

Hotel tax index: 999

52


Summary:  A 10.00% lodging tax was introduced in 1998 and was subsequently replaced by a 10.00% GST in 2000.  Because no hotel taxes were collected in the base index, the new index was set at 999.  This total indicates an incalculable percentage increase in taxes.  Tax charges on four nights of lodging total approximately $39.00, the 14th lowest among all 52 surveyed destinations.

 

Rank

Average price for 12 restaurant meals without taxes: $342.29 -
Goods and services tax (GST): 10.00% -
Total charges for 12 meals with taxes: $376.51 -
Total tax $ for 12 meals: $34.22 29
Percentage of total restaurant meals cost: 9.09% 25
Restaurant tax index: 999 52

Summary: 
As is the case in the lodging sector, a 10.00% GST was introduced into a sector that had no previous applicable taxes.  The index was therefore set at 999 to signal an incalculable percentage increase in taxes.  Tax charges on 12 restaurant meals total approximately $34.00, the 24th highest amount among all 52 surveyed destinations.

 

Rank
Passenger movement charge: AUS$ 38.00 -
International passenger service charge: AUS$ 36.56
Noise levy: AUS$ 3.58
International air passenger ticket levy: AUS$ 10.00
Total tax $ for international arrival and departure: $50.37 44
Percentage of total trip cost: 5.08% 47
Air passenger tax index: 441 51

( in rank column indicates a tax increase in Tax Barometer No. 11)

Summary:  Taxes on international air passengers have increased 341% in Sydney since 1994, the second highest increase among all 52 surveyed destinations.  This change can be attributed to the near doubling of the passenger movement charge (from AUS$ 20.00 to AUS$ 38.00) and to the introduction of two new taxes: the international passenger service charge, introduced in September 2001, and the international air passenger ticket levy, introduced in October 2001.  This passenger service charge was introduced to help pay for airport services and security charges and was levied originally at a rate of AUS$ 35.10, but has since been increased to AUS$ 36.56.  Tax charges on international arrivals and departures total approximately $50.00, ninth highest among all surveyed destinations and the second highest for destinations outside of the United States.

 

Barometer No. 1: The charge per departing airline passenger was increased from AUS$ 20.00 to AUS$ 27.00. 

Barometer No. 3: A noise levy of AUS$ 3.40 was implemented, affecting all arriving international passengers. 

Barometer No. 6: A new lodging tax of 10.0% was introduced. 

Barometer No. 7: The passenger movement charge was increased from AUS$ 27.00 to AUS$ 30.00.

Barometer No. 8: A correction was made to the air passenger charge sector in Barometer No. 8 which eliminated a previously reported AUS$ 0.42 Security Tax. 

Barometer No. 9: A new 10.0% GST was introduced, affecting the car rental and restaurant indices.  Because no previous tax existed in the restaurant sector, the index was pegged at 999.  The GST replaced a 10.0% lodging tax, so the hotel index remained the same.  A new 10.0% airport access fee on car rentals was also introduced

Barometer No. 10: Two new taxes were introduced in the car rental sector: a 2.0% stamp tax, and an AUS$ 2.59 per day vehicle registration recovery fee.   In the airline sectors, the passenger movement charge was increased from AUS$ 30.00 to AUS$ 38.00 and a new AUS$ 35.10 international passenger service charge was introduced on 9-10-01 to pay for airport services and security charges.

Barometer No.11: The international passenger service charge was increased from AUS$ 35.10 to AUS$ 36.56, the noise levy was increased from AUS$ 3.40 to AUS$ 3.58, and a new AUS$ 10.00 international air passenger ticket levy was introduced on October 1, 2001.

 


 


 

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