Why the ATO Is Increasingly Using Departure Prohibition Orders (DPOs)
Travel plans can be disrupted overnight - not because of immigration issues, but unpaid tax.
The Australian Taxation Office (ATO) has significantly increased its use of Departure Prohibition Orders (DPOs) as part of a broader shift toward firmer debt enforcement. Since July 2025, 21 DPOs have already been issued, exceeding the total number issued across the entire previous financial year.
A DPO allows the ATO to legally prevent a taxpayer from leaving Australia where there are reasonable grounds to believe they may depart without paying their outstanding tax or entering into a satisfactory payment arrangement. While historically used sparingly, DPOs are now being deployed earlier and more decisively, particularly where the ATO identifies deliberate non-payment.
Who is at risk?
DPOs are not aimed at taxpayers experiencing genuine short-term cash flow issues. The ATO has been clear that its focus is on taxpayers who have the capacity to pay but choose not to, including those who prioritize overseas travel while leaving tax or superannuation obligations unpaid.
In practice, this often affects:
Business owners with significant tax arrears
Directors with unpaid employee superannuation or PAYG withholding
Individuals who disengage from the ATO while continuing discretionary spending
Taxpayers perceived to be preparing to leave the jurisdiction
Recent cases show that DPOs can be enforced at the airport, with taxpayers prevented from boarding international flights in the early hours of the morning. These outcomes may feel sudden, but they are entirely lawful and supported by long-standing legislative powers.
Why the ATO is acting now
The ATO is under increasing pressure to reduce Australia’s $50 billion collectable tax debt. As part of this strategy, the ATO is moving faster to deploy its strongest enforcement tools where engagement fails. DPOs are often used alongside other actions such as director penalty notices, garnishee notices, credit reporting referrals and wind-up applications, particularly where those actions would be ineffective if the taxpayer left Australia.
Importantly, the ATO has emphasized that early engagement remains its preferred approach. SMS reminders, outbound contact and tailored guidance are typically attempted first. However, once the ATO forms a view that a taxpayer is deliberately avoiding payment, the response escalates quickly.
What taxpayers should understand
A DPO is not about punishment - it is about protecting the integrity of the tax system. The critical distinction many taxpayers miss is that freedom of movement can be lawfully restricted where significant tax debts remain unresolved.
Understanding that distinction early is what prevents outcomes that feel sudden, but are entirely lawful.
Taxpayers who engage proactively may still:
Enter into a payment arrangement
Seek rescission of a DPO
Apply for a Departure Authorization Certificate to travel temporarily
But these options are far more effective before enforcement action is taken, not after travel has already been disrupted.
The role of early advice
Once a DPO is issued, options narrow quickly. Early advice from an experienced tax advisor can help:
Assess DPO risk before it escalates
Re-establish constructive engagement with the ATO
Structure compliant payment solutions
Protect both business continuity and personal mobility
For taxpayers carrying significant tax debt, ignoring the issue is no longer a viable strategy. The ATO has made it clear that firmer action will continue - and will be used faster.
If you or your business are facing unresolved tax liabilities, early engagement is critical. Professional advice can make the difference between managing the issue proactively - or being grounded when you least expect it.
