CANBERRA, AUSTRALIA - The Australian aviation industry is sounding the alarm over the escalating costs of mandatory security background checks, warning that the financial burden is reaching a breaking point for individual pilots, small-scale operators and other businesses which rely on background security checks. While the government continues to tighten security protocols, the cost of compliance has surged, creating a stark economic disparity between struggling small businesses and large multinational firms.

Under current policy, the fees for AusCheck - essential for any pilot and aviation worker to access secure areas and any other worker required to have a police record check - have continued to climb. For flight instructors, regional charter pilots, small flight schools, and those businesses which face the flow on effects of the exorbitant rise in costs, these "hidden taxes" represent a significant threat to their viability. Employment in regional Australia, areas which rely on tourism and the primary resources sector are likely to be most affected while international firms largely avoid any additional burden.

The rise in security costs highlights a growing frustration within the business community regarding the government’s taxation priorities. As pilots and small businesses are hit with increased regulatory fees and now additional security costs, the broader community will see these costs passed through and prices will rise in an already inflationary economy.

"It is a bitter pill to swallow for a small business owner in the aviation, transport and tourism sector," says Michael Monck, Deputy Chair of RAAus. "We are being asked to foot the bill for national security infrastructure within an industry that already has extremely tight margins. The government is essentially taxing the 'little guy' to secure the nation with the end outcome being that many of these small business will buckle under the pressure and fail entirely."

A ripple effect across small business

The impact of these rising security costs extends far beyond the cockpit. A wide range of small businesses that form the backbone of the Australian economy are now facing similar financial pressure:

·         Regional tourism: Small tour operators and regional airports are seeing margins squeezed as security compliance costs are passed down the line.

·         Transport and logistics: Courier services and freight companies operating in secure zones (air and sea) are facing identical hikes in background check fees.

·         Supply chain vulnerability: As these costs accumulate, the price of goods and services in remote and regional Australia, which rely heavily on the transport sector, will rise.

·         The farming sector: with many landholders requiring security checks for firearms licences, the agricultural sector will also face additional costs which will feed into grocery prices.

These, and other sectors, will see prices rises which will apply further pressure on already increasing costs of living across the nation.

A call for policy reform

The aviation and small business sectors are calling on the federal government to review the funding model for national security. Instead of a "user-pays" system that disproportionately affects low-margin operators and individual professionals, the industry advocates for a more equitable tax structure.

"Security is a national priority, and its cost should be shared fairly," Mr Monck continued. "By failing to properly apportion costs while piling fees onto struggling Australians, the government is stifling the very people they purport to represent."

About Recreational Aviation Australia

RAAus is the peak body for general aviation in Australia, representing over 10,000 members and overseeing the registration of more than 3,000 aircraft. RAAus is dedicated to making aviation accessible, safe, and sustainable for all enthusiasts. Our advocacy extends well beyond our membership and into the lives of all those who are involved in or depend on aviation in Australia.

Media Contact:

Michael Monck
Deputy Chair, RAAus
michael.monck@raaus.com.au
0419 244794
https://raaus.com.au/