Don’t Let a Departure Prohibition Order Ruin Your Trip

Planning a trip overseas? Before you pack your bags, it's worth knowing that the Australian Taxation Office (ATO) now has the power to stop certain taxpayers from leaving Australia, and it's using that power more than ever. Known as an ATO Departure Prohibition Order (DPO), this legal measure prevents individuals with significant unpaid tax or superannuation debts from boarding an international flight until their obligations are resolved.

With Australia's outstanding tax debt sitting at more than $50 billion, the ATO has made it clear: ignoring what you owe is no longer a safe option.

Departure Prohibition Order

Key takeaways

  • The ATO can legally prevent certain taxpayers from leaving Australia using a Departure Prohibition Order (DPO).
  • Since July 2025, 21 DPOs have already been issued — more than the entire 2024–25 financial years combined.
  • DPOs are generally reserved for taxpayers with large, unresolved debts who have failed to engage with the ATO.
  • Acting early by contacting the ATO, setting up a payment plan, or seeking professional advice significantly reduces your risk.
  • If you're planning international travel and have outstanding tax or super obligations, address them now.

What is a Departure Prohibition Order?

A Departure Prohibition Order is a formal legal notice that stops a person from leaving Australia. The ATO can issue one when it believes a taxpayer with outstanding obligations may not return or may use travel to avoid settling what they owe.

This isn't a new power. The ATO has had it for years. What's changed is the frequency. Since July 2025, 21 DPOs have been issued, already surpassing the total from the entire prior financial year. That's not a coincidence. It reflects a deliberate shift in enforcement strategy as the ATO works through a backlog of unresolved debt.

Why the crackdown, and why now?

The ATO has been transparent about its reasoning. With billions in collectable tax debt outstanding across the community, and some taxpayers continuing to book overseas trips while ignoring repeated contact attempts, the ATO has decided firmer action is warranted.

It's important to put this in context, though. The ATO isn't coming after everyday Australians who are doing their best. If you've had a rough year, missed a payment, or fallen behind, and you're willing to pick up the phone and have an honest conversation, you are not the target of these measures.

DPOs are typically reserved for situations where the debt is substantial, and there has been a pattern of avoidance or non-engagement. The distinction matters: the ATO responds very differently to someone who ignores their notices versus someone who proactively reaches out for help.

Could this affect you?

Here are five practical steps to make sure you're on the right side of this:

  • Check where you actually stand. Log in to your myGov account or speak with your accountant to confirm whether you have any outstanding income tax, BAS, or super guarantee obligations. You might owe more than you realise or less.
  • Don't sit on ATO correspondence. A letter, an SMS, or a notice in your ATO online account is not something to put aside for later. Respond promptly. The longer you leave it, the less goodwill there is to work with.
  • Explore a payment plan before it becomes urgent. The ATO is generally willing to negotiate a manageable repayment arrangement, but the conversation is much easier before a debt escalates. An early agreed payment plan can be the difference between a resolved issue and a DPO.
  • Get a professional in your corner. A registered tax agent can assess your situation clearly, contact the ATO on your behalf, and help you make decisions with confidence rather than guesswork. Sometimes, just having someone else manage the conversation takes an enormous amount of pressure off.
  • Hold off on booking that overseas trip. If you know there are unresolved tax matters in the background, get those sorted before you commit to international travel plans. The last thing you want is a disruption at the departure gate.

Looking at the bigger picture

Tax debt has a way of quietly growing when it's ignored. Interest accrues, penalties are applied, and options narrow. The good news is that the ATO's primary goal is resolution, not punishment. Most people who engage early find the process far less painful than they expected.

A proactive conversation with a trusted accountant, even a short one, can give you a clear picture of where you stand and what your next move should be. That peace of mind is worth a great deal, especially when international travel is on the cards.

Not sure where you stand? Let's talk.

At Clarity Taxation, we help individuals and small business owners understand their obligations, manage outstanding debts, and deal with the ATO without the stress. Whether you've received a notice, fallen behind on lodgements, or want to know you're in the clear before you travel, we're here to help.

Give us a call on (03) 9726 4650 or get in touch online for a no-fuss conversation about your situation. It costs nothing to ask, and it could save you a lot.