Can the ATO stop you leaving Australia? What to know about Departure Prohibition Orders

If you have significant debt with the Australian Taxation Office (“ATO”) and plan on travelling overseas, you should contact the ATO as soon as possible to ensure that you can travel. On 7 January 2026, the ATO publicly flagged its increased use of Departure Prohibition Orders (“DPOs”) to stop some taxpayers leaving Australia until their tax debts were paid or suitable arrangements for payment of their debts were in place.

What is a Departure Prohibition Order?

A DPO is a formal order that can prevent an individual from leaving Australia. It is made under Section 14S of the Taxation Administration Act 1953 (Cth) and is generally used when the Commissioner considers a person has not made satisfactory arrangements to address a significant tax liability. A DPO can have immediate and severe consequences. For instance, the ATO have recently stopped people with an issued DPO against them at the airport and prevented them from boarding international flights.

Why the ATO is using DPOs more often

The ATO says it has issued 21 DPOs since 1 July 2025, which already exceeds the total issued in the previous financial year. This increase is linked with the ATO’s broader debt program. The ATO has described Australia’s collectible debt as being over $50 billion, which has nearly doubled from the $26.6 billion recorded on 30 June 2019. This signals to the public that the ATO are strongly addressing the issue of taxpayer debt, for individuals who do not engage despite having capacity to address their obligations. While the ATO continues to encourage early engagement through reminders, correspondence and tailored support, it has made it clear that it will take firmer action where it believes taxpayers are avoiding payment or failing to cooperate.

The ATO has also highlighted particular concern with liabilities that involve money that should have been passed on, including unpaid employee superannuation, PAYG withholding amounts withheld from wages, and GST collected from customers but not remitted.

DPOs sit alongside other enforcement measures

Additionally, the ATO can employ several other enforcement measures to reduce tax liabilities. These include:

1. Issuing Director Penalty Notices (“DPNs”), which can expose directors to personal liability for certain company tax and superannuation obligations;
2. Issuing Garnishee Notices, which can require third parties, such as a persons’ employer, to pay money to the ATO instead of to the taxpayer;
3. Disclosing certain business tax debts to credit reporting bureaus; and
4. Taking legal action including issuing statutory demands and commencing winding-up proceedings.

What should you do if you have ATO debt and travel plans?

If there is one clear message from the ATO’s recent enforcement activity, it is this: do not leave your tax debt liabilities until you are days away from departure.

Practical steps to resolve your tax debt liabilities can include:

1. Confirm your position with the ATO by identifying exactly what is outstanding and whether any lodgements are overdue;
2. Engage early with the ATO to reduce the risk of escalation and enforcement action;
3. If you are unable to pay the debt in full, propose a payment plan to the ATO;
4. Consider director exposure. If the debt relates to super, PAYG withholding or GST, directors should obtain advice early because consequences can escalate quickly; and
5. If a DPO is already in place, act urgently. There may be options to seek revocation or variation, or to apply for a Departure Authorisation Certificate, but these requests usually turn on the evidence you can provide and how quickly you move.

Key takeaways

The ATO are issuing more DPOs and have made a statement confirming that they are willing to stop people at the airport if they have outstanding tax liabilities. DPOs can prevent overseas travel until significant liabilities are addressed through payment or suitable arrangements. DPOs often arise alongside other enforcement measures such as DPNs, garnishees, credit reporting and court action. Early engagement is the safest way to reduce enforcement risk.

We’re With You

Chamberlains advise clients facing ATO debt recovery action, director exposure and urgent time pressures such as impending international travel. We can help you understand your position, respond promptly to enforcement activity and work through resolution options.