UK Adds Steep ‘Business Class Tax’ for Long-Haul Flights

Travelers from Australia to the UK will soon face a higher ‘flight tax’ when leaving, especially if they're in business or first class. The UK's Air Passenger Duty (APD), a tax that started small in 1994, has been going up. The latest boost, announced by the new Labour government, hits premium seats hard. In April 2025, the tax on long flights in these classes will jump from over A$400 to around A$500. Travelers should also note a new mandatory A$20 travel permit starting in January 2025 for visa-free countries. This hike aims to keep the tax value steady with inflation.The APD varies by flight distance and class. The UK divides flights into three bands based on how far you travel from London. Band A covers short flights, mostly within Europe. Band B is for mid-range flights, and Band C covers the longest trips, like those to Australia. Flights within the UK have their own rate. Seats with less than 40" pitch (common in economy) pay a lower rate, while roomsier seats (found in premium classes) pay more. Savvy travelers can sidestep the tax by flying into the UK but out of a European hub like Paris. This move can save them the APD hit. The private jet crowd will see an even bigger bump—around 50% more in taxes for medium-long flights.