ATO Deputy Commissioner Anita Challen says putting your head in the sand over a tax debt is not an option. Photo: ATO
Tax dodgers beware! If you’re planning an overseas trip the Australian Taxation Office has the power to ruin your travel plans.
The ATO has ramped up its use of departure prohibition orders (DPOs) as part of its debt collection methods.
And it is paying special attention to business owners who are avoiding their tax and superannuation obligations.
DPOs are being more actively used as part of the tax office’s tightened focus on strengthening payment performance of taxpayers.
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, which is more than the total number issued in the financial year that ended 30 June 2025.
A taxpayer was recently prevented from boarding a flight from Australia in the early hours of the morning due to a DPO imposed by the ATO because of deliberate non-payment of a significant debt.
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.
While the ATO states that its preference is always to support taxpayers willing to comply – through early intervention activities, SMS reminders, outbound letters and tailored guidance – it will take stronger action when necessary.
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.
ATO Assistant Commissioner Anita Challen said taxpayers with big debts could avoid being turned away at departure gates by contacting the ATO to discuss their payment options, paying in full and on time, or setting up a payment plan.
“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,” she said.
“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.”
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.
Other examples of firmer actions include director penalty notices, garnishees, referrals to credit reporting bureaus and wind-up applications.
The increased use of DPOs is one example of the stronger and more deliberate action the ATO is taking to deal with taxpayers who are continuing to ignore their obligations and refusing 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.
Ms Challen said the ATO was 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.
“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,” she said.
“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 … if this is not addressed, they can put other small businesses and their employees at risk.”
Subsection 14S(1) of the Taxation Administration Act allows the Taxation 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.
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 with a DPO in force may apply to the ATO for the issue of a Departure Authorisation Certificate to permit them to depart Australia temporarily.
