For most taxpayers, overseas travel isn’t something they ever need to think twice about. However, if a person or business has a significant unpaid tax debt, it’s important to understand how this can affect travel plans.
The Australian Taxation Office (ATO) has confirmed it is actively using departure prohibition orders (DPOs) in cases where taxpayers have large debts and are deliberately avoiding payment. While this measure applies to a relatively small group, it’s a timely reminder of the importance of staying on top of tax obligations and engaging early if issues arise.
What is a departure prohibition order?
A DPO is a legal notice that can prevent a taxpayer from leaving Australia until their tax debt is paid or satisfactory payment arrangements are in place.
The ATO has stated that “taxpayers with significant debts… who think they can skip the country without paying what is owed to the community should think again.” Since July 2025, a small number of DPOs have been issued as part of broader debt-collection activity.
In practical terms, this means overseas travel can be stopped at the airport if a DPO is in place.
When might this apply?
The ATO has indicated that DPOs are generally considered where there is concern a taxpayer may leave Australia to avoid payment, or where funds are being spent on overseas travel instead of meeting tax obligations.
This approach has been particularly relevant for company directors, including those with unpaid GST or PAYG withholding liabilities.
As the ATO explains, “If you have a significant debt with us and we’ve issued you with a DPO, you’ll need to pay or make satisfactory arrangements to pay before planning your overseas travel.”
Alongside DPOs, the ATO has also confirmed it is “moving faster” to use other debt-recovery tools where taxpayers continue to ignore their obligations. These can include director penalty notices, garnishees, credit reporting and, in some cases, wind-up action.
Why the increased focus on tax debt?
The ATO has been clear that unpaid tax remains a growing issue. Collectable debt has risen significantly in recent years, increasing from $26.5 billion in 2019 to around $50 billion today.
During the pandemic, a more flexible approach was taken to payment and lodgement. However, the ATO has noted that some taxpayers have continued to de-prioritise tax debts, prompting a firmer stance.
Their message is consistent: “The ATO strongly encourages taxpayers who cannot meet their obligations on time to engage early or speak with their registered tax professionals.” In short, “putting your head in the sand is not an option.”
What this means for you
For most of our clients, this will not be an issue. If you don’t have a tax debt, there’s nothing further you need to do.
However, if you do have an outstanding balance — or are concerned about your ability to pay upcoming tax liabilities — the key takeaway is early action and open communication. In many cases, manageable payment arrangements can be put in place well before issues escalate.
If you’d like reassurance about your current position, or support with managing and paying tax debts in a structured way, please contact our team.
Need reassurance?
We’re here to help you stay compliant, confident and focused on what matters most — without unexpected disruptions to your plans.