If you have an outstanding tax debt and are planning to travel overseas, it’s important to understand that the Australian Taxation Office (ATO) has the power to stop you from leaving Australia. In January 2026, the ATO publicly confirmed it is increasing its use of Departure Prohibition Orders (DPOs) to prevent certain taxpayers from departing the country until their tax debts are paid or appropriate arrangements are in place.
With tax debt enforcement now a clear priority for the ATO, individuals and business owners with unresolved liabilities should take early action — particularly if international travel is planned.
Can the ATO Stop You Leaving Australia?
Yes. Under Australian law, the ATO can legally prevent a person from leaving the country if they believe the individual has not taken reasonable steps to address a significant tax liability.
The ATO has recently exercised this power at Australian airports, stopping affected individuals from boarding international flights where a DPO has been issued.
What Is a Departure Prohibition Order (DPO)?
A Departure Prohibition Order is a formal legal order issued by the Commissioner of Taxation under section 14S of the Taxation Administration Act 1953 (Cth).
A DPO:
- Prevents an individual from leaving Australia
- Remains in force until tax debts are paid in full or acceptable payment arrangements are made
- Can be issued without prior notice
- Has immediate effect, including airport intervention
DPOs are typically used where the ATO believes a taxpayer has failed to cooperate or is attempting to avoid their tax obligations.
Why the ATO Is Increasing Its Use of DPOs
The ATO has confirmed that it issued 21 Departure Prohibition Orders since 1 July 2025, exceeding the total number issued in the entire previous financial year.
This reflects a broader and more aggressive ATO debt recovery strategy, driven by the sharp increase in collectible tax debt across Australia.
Australia’s Growing Tax Debt Problem
According to the ATO:
- Collectible tax debt now exceeds $50 billion
- This has nearly doubled from $26.6 billion as at 30 June 2019
The ATO has stated it will continue to encourage early engagement through reminders, correspondence, and tailored support. However, it has made clear that strong enforcement action will be taken where taxpayers have capacity to pay but fail to engage.
Priority Debts Targeted by the ATO
The ATO has flagged particular concern where tax debts involve money that should have been passed on to others, including:
- Unpaid superannuation guarantee (SG) contributions
- PAYG withholding amounts deducted from employee wages
- GST collected from customers but not remitted
These liabilities are seen as higher risk and are more likely to trigger enforcement action, including DPOs.
DPOs and Other ATO Enforcement Measures
Departure Prohibition Orders often sit alongside other ATO recovery actions, such as:
Director Penalty Notices (DPNs)
DPNs can make company directors personally liable for unpaid PAYG withholding, superannuation, and GST obligations.
Garnishee Notices
The ATO can require third parties — such as employers or banks — to redirect money owed to you directly to the ATO.
Credit Reporting
Certain unpaid business tax debts may be reported to credit reporting bureaus, impacting credit ratings and access to finance.
Legal Action
This may include statutory demands, court proceedings, and winding-up applications against companies.
What to Do If You Have ATO Debt and Overseas Travel Plans
The key message from the ATO’s recent actions is clear: do not wait until days before departure to address tax debts.
Practical Steps to Reduce Risk
- Confirm your tax position
Identify all outstanding liabilities and check for overdue lodgements. - Engage early with the ATO
Early communication significantly reduces the risk of escalation. - Propose a payment arrangement
If full payment is not possible, negotiate a structured payment plan. - Assess director exposure
Directors should seek advice early where debts involve PAYG, GST, or superannuation. - Act urgently if a DPO exists
Options may include:- Applying for revocation or variation of the DPO
- Requesting a Departure Authorisation Certificate
These applications depend heavily on evidence and prompt action.
Key Takeaways
- The ATO is issuing more Departure Prohibition Orders and has confirmed it will stop people at the airport where tax debts remain unresolved
- A DPO can prevent overseas travel until debts are paid or acceptable arrangements are in place
- DPOs are often used alongside Director Penalty Notices, garnishees, credit reporting, and court action
- Early engagement with the ATO is the most effective way to reduce enforcement risk
Source: ATO
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