The government has moved to correct an anomaly in civil aviation law which means Australian-licensed airlines operating in the New Zealand domestic market are not required to pay a passenger safety levy.
The levy is currently paid by all New Zealand-based airlines to the Civil Aviation Authority, which provides regulatory and safety oversight.
From December this year, Australian safety-certified airlines operating within New Zealand will pay an additional $1.66 per passenger for each leg flown.
In practice, the change will only affect JetStar.