Passport prices increase AGAIN – how much will you pay now?
Passport prices jumped how many times in 7 months?
The answer is three. And the amount they've increased? A tidy $73.
Last month, I urged you to get your passport application in by June 30 so you could avoid paying the new increased price.
What I didn't realise back then, was that the cost of a 10-year Australian adult passport application was actually increasing multiple times, thanks to an official price hike and the joy of indexation:
- December, 2023: the price was $325.
- January 1, 2024: rose to $346, as it was indexed to consumer price index (CPI).
- July 1, 2024: a scheduled price rise saw the cost increase again to $373.75.
- On the same date: Indexation was also applied and the price jumped to $398.
That's equivalent to a whopping 22.5% hike in just 7 months.
Aka… Decidedly more than inflation.
Why are passport prices increasing so much?
Two reasons: an intentional increase, and indexation.
The non-CPI increase will "support priority initiatives within the Foreign Affairs and Trade portfolio, including the government's efforts to modernise Australia's passport systems and services", according to a spokesperson statement from the Department of Foreign Affairs and Trade (DFAT).
As for the price increases on January 1 and July 1, they were due to indexation to CPI.
Indexation of government fees and charges happens quite widely. In fact, both federal and state governments apply indexation either 6-monthly or annually, on things like HECS debts, speeding fines and ATO general interest charges (GIC). When we're not in a cost of living crisis, those increases are usually around 1-2%, so they're not as noticeable.
What can you do about it now?
So you've got an out-of-date or nearly-expired passport, and you're facing a $400 fee to get a new one? Sans discovering a time machine, there's no way to avoid these sky-high passport prices.
But – you can do yourself a massive solid, by applying for a passport well in advance of when you'll need it.
Because along with applications costs soaring, the cost of fast-tracking your application with priority 2-day processing has jumped in price too, by 22.5%.
It was $237 in December last year, and it's now $290.
You can also request your passport in 5 business days for a cheeky $100 extra. Evidently, the government is counting on Aussie's leaving it the last minute, as they announced in the May 2024 Budget that they expect to generate an additional $27.4 million revenue over the next five years from this fee alone!
Do yourself a favour: apply for your passport at least 6 weeks before you travel, so you don't have to give the government a single cent more than you need to.
While you're preparing for your next trip, check out these cheap travel insurance deals, and perhaps consider the merits of a credit card that charges no foreign transaction fees.