Tax dodgers are to be banned from leaving the country until they settle their debts, the Australian Taxation Office (ATO) says.
The ATO is now using Departure Prohibition Orders (DPOs) to block departures amid moves to boost payment and debt collection.
A DPO allows the tax office to stop tax dodgers from leaving Australia until they settle up in full.
The office says that since last July, they issued 21 DPOs, more than the total number in the financial year ending June 30, 2025.
Tax office Assistant Commissioner Anita Challen says: “Taxpayers with significant debts to the ATO that think they can skip the country without paying what is owed should think again.”
“We think most Australians would expect businesses to pay their employees’ superannuation before they plan an overseas holiday.”
She cited one case where a person was issued a DPO and blocked from boarding an outbound international flight in early morning.
TAX DODGERS WARNED
“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,” Challen says.
“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.”
Challen says it is “common” for businesses not paying tax to owe money to more than one creditor, a move which threatens other small businesses and their employees.
The ATO says there is $50 billion in debt that has to be collected, particularly those relating to unpaid employee superannuation and taxes withheld from employees’ wages or collected from customers as GST but not passed on to government.
The ATO says other measures it is using to collect debt include director penalty notices, garnishees, referrals to credit reporting bureaus and wind-up applications.
