ℹ️ General information only – not legal or tax advice. Whether a departure prohibition order is issued, revoked or travel is allowed is decided by the tax office or the courts. Get advice for your situation before you travel.
Planning a trip home to see family, a holiday, or a move overseas – but you owe money to the tax office? It’s a common worry, and for good reason. In some cases the tax office can stop you leaving Australia using a departure prohibition order (DPO). Here’s what you need to know before you book.
Can the ATO really stop me leaving Australia?
Yes. If you have an outstanding tax debt and the tax office believes it is desirable to make sure the debt is paid or properly dealt with before you go, it can issue a DPO. Border authorities are told, and you can be stopped at the airport.
A DPO is not a punishment – it is a way of making sure tax debts are addressed before someone leaves the country. But leaving Australia in breach of a DPO is an offence under tax law and can lead to serious consequences, including penalties or imprisonment.
Does every tax debt lead to a travel ban?
No. DPOs are one of the tax office’s firmer actions, generally used after other steps. Before issuing one, the tax office considers your individual circumstances – including whether you have engaged with them and what you have done to deal with the debt.
Situations that can increase the risk include:
- Large tax debts that have gone unpaid for a long time
- Not responding to letters or calls from the tax office
- Unlodged tax returns or BAS, leading to estimated debts
- Signs that you may be leaving Australia permanently or moving assets overseas
A real-world style example
Raj runs a small business and fell behind on BAS and personal tax during a difficult year. Letters arrived but went unanswered. When Raj later booked flights to visit family overseas, the tax office had already issued a DPO, and Raj was stopped at the airport.
Had Raj engaged earlier – lodging the overdue returns and setting up a payment plan – the situation would likely have been very different.
I already have a DPO. What can I do?
- Pay in full – the quickest and most effective way to have the DPO revoked
- Make a satisfactory arrangement – for example, one supported by security over assets
- Apply to have it revoked – with your reasons and supporting documents
- Seek review – you may seek external review or ask a court to set it aside (get legal advice)
What if I need to travel urgently?
If your DPO is still in force and you need to travel temporarily – for example, for a family emergency – you can apply for a departure authorisation certificate (DAC). It is only granted in limited circumstances, may come with conditions, and allows travel for a limited period. It does not cancel the DPO.
How to avoid a travel ban in the first place
- Lodge all overdue tax returns and BAS – estimated debts are often higher than the real amount
- Respond to the tax office – don’t ignore letters
- Set up a payment plan you can afford
- Sort out tax debts well before booking international travel
- If you are moving overseas permanently, plan your tax affairs early – see our tax residency guide
Company directors: watch out for DPNs
If you are a company director and your company has unpaid PAYG withholding, GST or super, you could become personally liable through a director penalty notice. Personal tax-related debts can then lead to firmer action. Read 7 mistakes directors make with a DPN.
Frequently asked questions
Will I be told before a DPO is issued?
The tax office looks at your circumstances and engagement with them. The best protection is to engage early – don’t wait for firmer action.
Can I leave if I’m on a payment plan?
Being on a payment plan and keeping to it shows you are dealing with the debt. If you are worried about travel, get advice before you book.
How long does a DPO last?
Until it is revoked by the tax office or set aside by a court.
Key takeaways
- The tax office can stop people with tax debts leaving Australia
- Leaving in breach of a DPO is a serious offence
- Paying in full is the fastest way to have a DPO lifted
- A departure authorisation certificate allows limited travel only
- Engage early – lodge, respond and set up a payment plan
Talk to UV TAX
Worried about a tax debt before you travel, or already have a DPO? Call 0466 268 405 or (03) 9007 7892. Read our full guide: Departure Prohibition Orders – can the ATO stop you leaving Australia?
Related: Departure Prohibition Orders · Tax Debt Help · Director Penalty Notices · Late Tax Returns
This article is general information only and is not legal or tax advice. The example is illustrative only. Decisions about departure prohibition orders and travel are made by the tax office or the courts, and UV TAX cannot guarantee any outcome. Do not attempt to leave Australia in breach of a DPO. Please seek advice about your situation.