The Australian Taxation Office (ATO) is actively using departure prohibition orders (DPOs) as part of a broader shift towards strengthening payment performance and debt collection.
A DPO is an enforcement action available to the ATO to prevent certain persons with tax liabilities from leaving Australia without paying their outstanding tax.
Since July 2025, the ATO has issued 21 DPOs, more than the total number issued in the financial year ended 30 June 2025.
Taxpayers who have accumulated significant tax debts that they have the means to pay, and who take deliberate steps to avoid paying, can expect to have overseas travel plans disrupted by the ATO. The ATO’s preference is always to support taxpayers willing to comply to pay through early intervention activities, SMS reminders, outbound letters, and tailored guidance.
However, where the ATO has concerns that a taxpayer is seeking to flee the jurisdiction or is spending money on overseas trips in preference to meeting their tax or superannuation obligations, the ATO may issue a DPO to protect the interests of the rest of the community.
The ATO is focused on reducing unpaid tax and bringing down the $50 billion collectable debt book through its approach to debt management. This includes taking necessary actions on taxpayers who refuse to pay debts, particularly those relating to unpaid employee superannuation, and taxes withheld from employees’ wages, or collected from customers as GST – but not passed on to the government.
A taxpayer was recently prevented from boarding a flight from in the early hours of the morning due to a DPO imposed by the ATO because of deliberate non-payment of a significant debt.
The increased use of DPOs is just one example of the strong and deliberate action the ATO is taking to deal with taxpayers who are continuing to ignore their obligations and refuse to engage to pay their outstanding amounts. For these taxpayers, the ATO is moving faster to deploy the full powers available to secure payment and prevent the further accumulation of debt. Other examples of firmer actions include director penalty notices, garnishees, referrals to credit reporting bureaus and wind-up applications.
DPOs are often applied in conjunction with other firmer actions, where the impact of these other actions would be limited or rendered futile if the taxpayer left the country.
Taxpayers can avoid firmer actions by contacting the ATO to discuss their payment options, paying in full and on time or setting up a payment plan.
Quotes attributable to ATO Assistant Commissioner Anita Challen
‘Taxpayers with significant debts to the ATO that think they can skip the country without paying what is owed to the community should think again.’
‘We think most Australians would expect businesses to pay their employees’ superannuation before they plan an overseas holiday.’
‘The consequences of being issued a DPO are serious and confronting. A taxpayer issued a DPO was recently pulled aside and prevented from boarding an international flight out of Australia in the early hours of the morning.’
‘If you have a significant debt with the ATO and we’ve issued you with a DPO, you’ll need to pay or make satisfactory arrangements to pay before planning your overseas travel.’
‘The ATO strongly encourages taxpayers who cannot meet their obligations on time, to engage with us or speak with their registered tax professionals early. Putting your head in the sand is not an option.’
‘Not paying tax affects everyone, and it is common for businesses who aren’t paying their tax to owe money to more than one creditor and, if this not addressed, they can put other small businesses and their employees at risk.’
Notes to journalists
- ATO stock footage and images are available for use in news bulletins from our media centre.
- More information about our approach to dealing with deliberate non-payment is available on the ATO website.
- Subsection 14S(1) of the Taxation Administration Act allows the Commissioner to issue a DPO where there are reasonable grounds to believe the taxpayer may depart Australia without discharging their tax liability or entering a satisfactory arrangement.
- Detailed information about DPOs and the circumstances in which the ATO will consider issuing one is available in PS LA 2011/18 | Legal database (annexure D)
The ATO will inform taxpayers in writing when a DPO is in place, which outlines the grounds for the order, options to have it rescinded, and appeal rights. - A tax debtor in respect of whom a DPO is in force may apply to us for the issue of a Departure Authorisation Certificate to permit them to depart Australia temporarily.
- A high-resolution headshot of ATO Assistant Commissioner Anita Challen is available for download from our media centre.
Contact details:
[email protected] | 02 6216 1901