The Australian Tax Office (ATO) has broad powers to stop individuals from leaving Australia using Departure Prohibition Orders (DPOs). These orders are a strong enforcement tool used to compel payment of outstanding tax debts or force engagement with the ATO. In the six months to 31 December 2025, the ATO doubled the number of DPOs issued and has stated it will actively disrupt international travel to protect community interests.
What is a Departure Prohibition Order
A DPO prevents a person from leaving Australia if:
- They have an unpaid tax liability; and
- An authorised ATO officer believes it is necessary to stop them departing until the debt is paid or a payment arrangement is made.
DPOs can be issued against any individual, including foreign nationals and Australian citizens. Once issued, border authorities will stop the person from departing Australia.
The ATO typically issues DPOs if a person:
- Has a material unpaid tax debt.
- Has failed to make payments to the ATO in reduction of the debt and/or engage with the ATO in respect of paying the debt.
- Has international assets that could satisfy the debt.
- May relocate overseas or abscond.
- Frequently travels internationally, often for business.
DPOs are often used alongside other recovery tools such as Garnishee Notices and Director Penalty Notices.
Departure Authorisation Certificates
A person subject to a DPO can apply for a Departure Authorisation Certificate (DAC), which allows temporary overseas travel. However, there will be a delay in this process and it may restrict necessary travel and/or may come with conditions such as partial payments, security, travel limits, or strict return dates.
As such it is better to take steps to avoid the ATO issuing a DPO in the first place.
How to Avoid Getting a Departure Prohibition Order
There are certain steps that a taxpayer can take to avoid getting a DPO including:
- Communicate with the ATO about your tax debt and where possible negotiate a payment arrangement or inform the ATO when the debt will be paid. This communication will hopefully show the ATO that you are serious about resolving your tax liability.
- Provide Security: If you own significant assets, you may be able to offer sufficient security for the debt (such as a charge or mortgage over property) in exchange for them not issuing travel restrictions.
- If you are unable to pay your ATO debt consider a Personal Insolvency Agreement or bankruptcy. However, these types of insolvency appointment also may have travel restrictions.
Advice and Assistance
If you are seeking advice regarding DPOs and the risks they pose, please contact our Brisbane or Gold Coast office and our experienced staff will be able to assist you.
