Refund rethink could boost Sydney winner

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Gavin Lipsith

4-Jul-2006

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A new cash-back refund policy could encourage departing tourists and Australians to spend more at the airport's shops if the proposal is adopted

A proposal to offer departing tourists tax refunds in cash could provide a significant boost to the winner of Sydney International airport's duty-free tender, the result of which is due to be announced within days. The government is considering whether to privatise the tax refund business as part of a review on tourist shopping regulations, and private operators could introduce cash refunds as opposed to the current system of crediting bank accounts.

The refund scheme allows tourists and Australians to claim back the tax on anything they take overseas that they have bought in the month before they leave the country. The changes being discussed would mean that passengers can collect their tax refund on goods purchased during their stay in Australia at the airport, in cash. This would encourage travellers to spend more at the stores, explained Sydney Airport head of retail Bob McFadyen.

"As part of the general tourism shopping review the government is deciding whether to privatise the tax refund system. Three global companies are interested and as part of their discussions with us they have said that they will introduce cash refunds, which would be a definite positive for airport retail," he said.

There is no set timeframe for the review, although Australia's revenue minister Peter Dutton told press that the review was being finalised and would be discussed by government soon.

Meanwhile, McFadyen told DFNI Asia that the airport is still in dialogue with "different parties" over the allocation of its duty-free contract, and that he expected an announcement to be made within 10 days. The announcement was originally scheduled for the first week of July.

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