You may need to rethink your Overseas Holiday
The ATO Cracks Down on Australians Trying to Leave with Tax Debts
By Tina Zawila
For a while now, we’ve noticed a considerable increase inactivity from the Australian Taxation Office (ATO) to recover unpaid tax and superannuation debts — and part of that strategy now targets people attempting to leave the country while still owing money to the taxman.
The level of debt owing to the ATO has surged in recent years, reaching around $50 billion, driven by unpaid liabilities including GST, PAYG withholdings and super contributions. After a period of more lenient treatment during the pandemic, the ATO has signalled a much tougher approach to debt collection.
A key enforcement tool now being used is the Departure Prohibition Order (DPO). These orders can stop taxpayers with significant unpaid debts — and the capacity to pay — from leaving Australia without first settling their obligations or entering a suitable payment arrangement. Since July 2025, the ATO has already issued more DPOs than in the entire 2024–25financial year, with multiple individuals prevented from boarding international flights due to unresolved liabilities.
ATO Assistant Commissioner Anita Challen has made it clear the message is firm: those who deliberately ignore their tax obligations and “plan overseas trips instead of paying” should expect their travel plans to be disrupted.
In short, the ATO’s message to would-be world travellers with ATO debt is straightforward: clear your obligations before you clear customs.
The crackdown is part of a broader suite of recovery measures including Director Penalty Notices (DPNs), garnishee orders (taking funds directly from your bank account without your knowledge or consent), referrals to credit reporting agencies and legal actions like wind-up applications against companies.
As Chartered Accountants and Tax Agents we encourage our clients with ATO debts to engage early with the ATO and negotiate repayment plans, rather than risk travel bans or further enforcement.
Your Accountant and Tax Agent acts for you and can provide you with advice and assistance to help you meet your taxation obligations. If you have any questions or concerns, seek professional advice immediately.
The team at UHY Haines Norton CQ are here for you, call us on 07 4972 1300.
