What is an ATO DPO? Departure Prohibition Order Explained

In recent months, Australian authorities have increased their use of travel restrictions as part of efforts to recover unpaid government liabilities. For individuals and business owners with unresolved obligations, this change has brought departure prohibition orders into sharper focus, particularly where overseas travel plans are involved.

These orders can be imposed quickly and are often enforced at the airport, catching people off guard and ruining travel plans. Understanding how and why the ATO uses this power is now an important part of managing serious tax debt and compliance risk.

What is a DPO?

A departure prohibition order is straightforward: it legally prevents someone from leaving Australia until their outstanding debts are paid or a satisfactory arrangement is in place.

Recent reporting in Business News confirms that the ATO has issued 21 departure prohibition orders as part of intensified debt collection. This highlights that the Australian Taxation Office is actively using departure prohibition orders to manage significant tax debts.

A DPO may be issued for two reasons:

• For tax matters, the Commissioner of Taxation may make a DPO under Part IVA of the Taxation Administration Act 1953.
• For child support matters, a DPO may be issued under section 72D of the Child Support (Registration and Collection) Act 1988 by the Child Support Registrar through Services Australia.

The legislation allows action where there is an existing liability and a reasonable-grounds belief that issuing the order is necessary to prevent a person from leaving without properly addressing what they owe.

When a DPO is issued, officials can intervene at departure points, including preventing a person from boarding an international flight out of Australia. A DPO is in force only while the person still owes a sum of money, and can be lifted once the person pays their liability or enters a satisfactory arrangement to pay it off over time.

Who’s at Risk of an ATO Departure Prohibition Order?

People most at risk of a departure prohibition are typically those with significant tax debt. Individuals may also be subject to a DPO for unpaid child support.

Public statements from ATO Assistant Commissioner Anita Challen highlight that enforcement mainly targets those with accumulated tax debts who take steps to avoid payment.

This includes directors and business owners with debts to the ATO, particularly where there is outstanding tax or other unpaid liabilities, such as superannuation. Risk increases when behaviour suggests spending money on frequent overseas travel instead of meeting their tax or superannuation obligations.

What to do if You’re Issued a Departure Prohibition Order

If you’re issued a DPO, your travel plans are stopped immediately. A written notice explains that a DPO is in force, outlines the grounds for the decision, and sets out review and appeal rights.

Immediate steps include seeking professional advice and acting to contact the ATO or Services Australia, depending on whether the liability relates to tax or child support.

Authorities strongly encourage those who cannot pay on time to engage early and proactively. Taxpayers who cannot meet their obligations are invited to propose a plan. The ATO advises both taxpayers and people who owe child support to address matters directly rather than delay, as early action can shorten the disruption to overseas travel plans and may even stop the DPO from being issued.

How to Prevent a Departure Prohibition Order

Preventing a departure prohibition order depends on demonstrating intent and a capacity to resolve liabilities. Taking active steps can avoid the DPO and prevent potential liabilities from leaving Australia without resolution.

Practical prevention steps include:

• Resolving any outstanding tax liabilities before travelling.
• Paying or arranging payment for owed child support.
• Reaching out to make payment arrangements before attempting to leave the country.

A DPO enforcement decision focuses on whether or not a person may depart Australia without addressing debts. Where cooperation exists, authorities are less likely to restrict departure from Australia.

Need Help with ATP DPO? Macmillan Lawyers and Advisors are Here to Assist

If you’re carrying significant debt with the ATO, facing outstanding tax, or concerned about tax or child support liabilities affecting your ability to travel, early legal advice matters. Acting before enforcement escalates gives you more control over the outcomes and timing.

A free 30-minute consultation with Macmillan Lawyers and Advisors allows you to assess your risk of being issued a DPO, understand how the ATO takes enforcement action, and identify practical steps to prevent or lift restrictions. This includes proactive and structured engagement with the Australian Taxation Office or Services Australia to negotiate a satisfactory arrangement that protects your position.

Getting advice early can mean the difference between resolving matters privately and having travel plans disrupted by the ATO. Speak with Macmillan Lawyers and Advisors to take informed action before restrictions affect your ability to leave Australia.

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