Australians will pay more for passports from the beginning of next year.
The cost of a new passport will increase by $20 for adults and $10 for children.
Tuesday's federal budget also increases by $54 the cost of priority processing.
The measure raises $172.9 million over four years.
Meanwhile, the Department of Foreign Affairs and Trade will gain extra resources to expand Australia's diplomatic footprint.
There will be a new consulate general in Lae, Papua New Guinea, and at a new location to be decided in China at a cost of $39.4 million.