The Australian Taxation Office (ATO) has intensified its campaign against tax avoidance – according to an article published in Inside Small Business magazine – by increasing the issuance of departure prohibition orders (DPOs) against individuals with outstanding tax liabilities, preventing them from leaving Australia before they pay their outstanding tax.
Inside Small Business has reported that since July 2025, the ATO has issued 21 DPOs, more than the number issued in the financial year ended 30 June 2025, as the agency is strengthening payment performance and debt collection this financial year.
The ATO told the publication it aims to reduce the unpaid tax and lower the $50 billion collectable debt book through its debt management approach. This includes taking necessary actions on taxpayers who refuse to pay debts, particularly those relating to unpaid employee superannuation, and taxes withheld from employees’ wages, or collected from customers as GST, but not passed on to the government.
DPOs are often applied in conjunction with other firmer actions, where the impact of these other actions would be limited or rendered futile if the taxpayer left the country.
The ATO told the publication that it was also warning tax dodgers who are attempting to flee the country or are spending money on overseas trips that they will face a DPO as a means to protect the interests of the rest of the community.
However, the ATO will provide support for taxpayers willing to comply to pay through early intervention activities, SMS reminders, outbound letters, and tailored guidance.
“Taxpayers with significant debts to the ATO that think they can skip the country without paying what is owed to the community should think again,” ATO assistant commissioner, Anita Challen, told Inside Small Business magazine.
“The consequences of being issued a DPO are serious and confronting. Not paying tax affects everyone, and it is common for businesses that aren’t paying their tax to owe money to more than one creditor and, if this is not addressed, they can put other small businesses and their employees at risk.
“If you have a significant debt with the ATO and we’ve issued you with a DPO, you’ll need to pay or make satisfactory arrangements to pay before planning your overseas travel. The ATO strongly encourages taxpayers who cannot meet their obligations on time to engage with us or speak with their registered tax professionals early. Putting your head in the sand is not an option,” she concluded.