A Departure Prohibition Order prevents a person with a tax liability from leaving Australia. It remains in force until the Commissioner revokes it or a court sets it aside. Only the Australian Taxation Office can issue one. If you're a private creditor watching your debtor book flights, a DPO isn't a tool you can reach for. You do have other options, and we cover both sides below.

This page is general information, not legal advice. Every file is different and the right move depends on the facts.

The DPO power sits in the Taxation Administration Act 1953. Section 14S(1) gives the Commissioner of Taxation two things they need to make an order. The person has to be subject to a tax liability, and the Commissioner has to believe on reasonable grounds that the order is desirable to stop them leaving Australia without paying that liability in full or making satisfactory payment arrangements.

Once issued, the DPO stays in force. Under sections 14S(2) and 14T it only ends when the Commissioner revokes it or a court sets it aside. The ATO's own practice statement PS LA 2011/18 also confirms at paragraph 156 that if the ATO fails to tell the person a DPO has been issued, that failure does not affect the validity of the order. In plain terms, a debtor can be stopped at the airport without prior notice.

The consequence of ignoring one is serious. Section 14R says a person who knows a DPO is in force and leaves Australia without a departure authorisation certificate (a document from the ATO giving temporary permission to travel faces a penalty of 50 penalty units or 12 months imprisonment, or both.

There's no dollar threshold in the Act. In practice, the ATO tends to reach for a DPO when the tax liability is substantial, when the debtor has stopped cooperating or has broken a payment arrangement, and when there are signals the person may leave. Booked international travel, offshore assets, dual citizenship or a pattern of moving money out of the country all fall into that category.

A DPO usually sits alongside the other tools the ATO already uses. A director penalty notice can make company directors personally liable for certain unpaid company tax debts. A garnishee notice lets the ATO collect straight from a debtor's bank, employer or trade debtors. The DPO is the escalation step the ATO takes when it thinks the debtor is about to put themselves out of reach.

Paying the tax liability in full or entering a payment arrangement the ATO considers satisfactory allows the Commissioner to revoke the order under section 14T.

A person who needs to travel temporarily may apply for a departure authorisation certificate under section 14U. The certificate can authorise departure on or before the seventh day after a specified day, provided that specified day is no more than seven days after the certificate is issued. Under section 14U(2), the ATO may also require security through a bond, deposit or another arrangement intended to ensure the person returns to Australia.

A DPO can also be challenged in the Federal Court under section 14V. The Federal Court’s Taxation National Practice Area confirms that the appeal is commenced by filing Form 74 under rule 33.05(1) of the Federal Court Rules 2011.

The distinction matters for private creditors: a DPO belongs entirely to the ATO. A creditor has no ability to apply for one or set the process in motion. The ATO issues these orders to recover tax liabilities, without regard to an unsecured creditor’s unpaid invoice or enforcement timetable.

If your debtor is already overseas, the recovery options change. We cover those options in our post on chasing a debtor overseas. Where a debtor is preparing to leave, the practical issue is how quickly you can act on your own file.

Signs that a debtor may leave Australia or move assets should prompt an early review of the file. The right response depends on who owes the debt and what evidence is available.

Common options include:

Freezing orders take evidence and careful preparation. Where judgment has not yet been obtained, the applicant needs a good arguable case and must show a danger that any judgment will go unsatisfied, such as evidence that the debtor may abscond or move assets beyond reach. The Federal Court notes that most freezing-order applications are urgent, so delays in getting the file to legal review can matter.

We run freezing order applications through E C Legal, our in-house law firm. Because the collection and legal teams work within the same organisation, an urgent file can move directly to legal review without waiting for an external firm to be briefed. That can reduce the delay when time is critical.

If you suspect your debtor is preparing to leave Australia, send us the file and we'll tell you what's worth doing. The Debt Terminator free debt appraisal is exactly that, a read on the file at no cost. For eligible collection matters, commission is charged only when money is recovered. Separate legal costs may apply if the matter proceeds through E C Legal.

If you're dealing with an ATO DPO as a debtor, speak to a tax lawyer or registered tax agent. If you're a creditor and your debtor looks like a flight risk, get the file appraised early so the options are still open.

• Chasing a debtor who has already moved overseas

• Time limits on recovering a debt in Australia

• Letter of demand template

• Commercial debt collection

• https://www.ato.gov.au/law/view/view.htm?PiT=99991231235958&docid=PSR%2FPS201118%2FNAT%2FATO%2F00001

• https://www.legislation.gov.au/C1953A00001/2026-01-01/2026-01-01/text/original/pdf/1

• https://www.fedcourt.gov.au/law-and-practice/national-practice-areas/taxation/more