Most business owners can’t imagine being stopped at the airport over a tax debt. But for directors and people with considerable unpaid taxes, a Departure Prohibition Order (DPO) is now a real possibility.
As the ATO increases enforcement, it’s important to understand how DPOs work and what steps to take if you receive one. If you already have a DPO, this blog will help you protect your ability to travel and your business.
What is a Departure Prohibition Order?
A Departure Prohibition Order is an enforcement power allowing the Australian Taxation Office (ATO) to stop someone from leaving Australia if they have significant unpaid tax and the ATO believes leaving would jeopardise tax recovery.
A DPO is an administrative measure the ATO uses when it thinks payment plans or negotiations won’t work if you’re overseas.
Importantly, a DPO can apply to individuals within a company, not just the company itself — including Directors with unpaid PAYG, GST, or superannuation liabilities.
Can the ATO stop you from leaving Australia?
The ATO’s enforcement focus is sharpening.
The ATO needs to reduce its $50 billion collectable debt book. Since July 2025, 21 DPOs have been issued— more than the total for the entire previous financial year.
DPOs are often used alongside other ATO actions, like Director Penalty Notices (DPNs), which assert your personal liability for the debt.
What typically triggers a DPO?
While every case is different, risk factors include:
- Large/long-outstanding tax debts
- Repeated failure to engage with the ATO
- Unpaid superannuation or GST collected but not remitted
- Signs that the individual may travel without resolving the debt
DPOs are intended as a last resort, to be used when the Commissioner believes that letting someone leave Australia would make it harder for the ATO to recover the debt. Simply having an unpaid debt and planning to travel is not enough.
For example:
Imagine a director with unpaid PAYG and superannuation arranges a trip overseas. The ATO, having already issued a DPN, applies a DPO. The director can’t board their flight until they take action to resolve the debts.
While it sounds confronting, you can avoid a similar situation by acting early.
What happens when the ATO issues a DPO?
When issuing a DPO, the ATO must notify you in writing. The notice will include the reasons, how it can be revoked, and your rights to review or appeal.
A DPO can be cancelled if you pay the tax, make acceptable arrangements, or, in some cases, for compassionate reasons.
What should you do if you receive a DPO?
Act fast; hesitation limits your options
A DPO is often a signal that harsher enforcement is coming, including asset seizures or bankruptcy.
Practical steps to turn things around include:
- Engage immediately with specialist restructuring and tax advisers
- Start a conversation with the ATO; silence is considered refusing to cooperate
- Assess formal options, such as voluntary administration, a deed of company arrangement, or a small business restructure if eligible
Every option has different consequences, especially if the company is liquidated. Pick the wrong path or wait too long, and the situation can worsen.
Read more: What Happens When a Company Goes Into Liquidation in Australia?
A note for advisers:
If your client is facing a DPO or escalating ATO enforcement, it’s time to bring in a restructuring expert. Early action keeps more options on the table.
ATO enforcement is increasing, but there are still solutions available.
Increasing Departure Prohibition Orders is not a one-off. It’s part of a bigger ATO push, alongside DPNs, garnishees, and insolvency moves.
The key lesson is clear: act early and stay compliant. The sooner you move, the more control you keep.
If you’ve received a DPO or believe you’re at risk, call SALEA Advisory now. We help business owners, accountants, and lawyers steady the ship, deal with the ATO, and protect their business and personal interests.
