By June Ramli
Perth, June 29: Ninety-four Australians are currently prohibited from leaving the country over significant unpaid tax debts, with the Australian Taxation Office (ATO) confirming the taxpayers subject to the orders collectively owed around $750 million when the travel bans were imposed.
The figures, provided exclusively to DailyStraits.com, offer a rare insight into the ATO’s increasingly tough approach to recovering unpaid tax liabilities from taxpayers who refuse to engage with the tax office.
As at June 22, the ATO said 94 Departure Prohibition Orders (DPOs) remained active.
During the 2024–25 financial year, the ATO issued 14 DPOs. Between July 2025 and May 31, 2026, it issued a further 49 orders, reflecting a significant increase in the use of the enforcement measure.
“The number of DPOs has increased in recent years and is one example of the strong and deliberate action the ATO is taking to deal with taxpayers who are continuing to ignore their obligations and refuse to engage with us to pay their outstanding amounts,” an ATO spokesperson said.
A Departure Prohibition Order prevents an individual from leaving Australia until they either pay their outstanding tax debt in full or make satisfactory arrangements with the ATO to resolve it.
The ATO stressed that issuing a DPO is not its first response to unpaid tax.
“The ATO’s preference is always to support taxpayers willing to comply through early intervention activities such as SMS reminders, outbound letters and tailored guidance before moving to firmer actions such as garnishees, director penalty notices or Departure Prohibition Orders,” the spokesperson said.
Before issuing a DPO, the tax office considers a taxpayer’s compliance history, engagement with the ATO, efforts to address their debt and whether overseas travel could jeopardise the government’s ability to recover the outstanding amount.
The orders are not limited to company directors.
According to the ATO, DPOs may be issued to both individuals and company directors who have become personally liable for company tax debts under Australia’s director penalty regime, provided the legislative requirements are satisfied.
The tax office also emphasised that travel bans are not intended to be permanent.
Under the law, a DPO will be revoked once the taxpayer has either paid the debt in full or entered into satisfactory arrangements to completely discharge the outstanding liabilities.
The ATO delivered a clear warning to Australians with significant unpaid tax debts who are planning overseas holidays.
“Taxpayers who have accumulated significant tax debts that they have the means to pay, and who take deliberate steps to avoid paying, can expect to have overseas travel plans disrupted by the ATO,” the spokesperson said.
The ATO declined to provide examples of recent cases, citing taxpayer confidentiality obligations.
With tax time for the 2025–26 financial year opening on July 1, the ATO’s warning comes as millions of Australians prepare to lodge their returns. Individuals lodging their own tax return have until October 31, 2026 to submit, although because the deadline falls on a Saturday this year, returns lodged by Monday, November 2, 2026, will be considered on time. Taxpayers who use a registered tax agent generally have until May 2027, provided they are on the agent’s client list before the October deadline.
The ATO stressed that simply lodging a tax return late will not result in a Departure Prohibition Order. Instead, the travel bans are reserved for taxpayers with significant outstanding tax liabilities who have the means to pay but deliberately avoid doing so or refuse to engage with the ATO to resolve their debt.
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