What is a departure prohibition order?
A departure prohibition order:
- is one of the firmer actions we may take if you have an unpaid tax debt
- prevents taxpayers with tax debts from leaving Australia
- remains in effect until the debt is paid or a satisfactory arrangement is made with us.
A DPO is not a penalty. It is used to ensure tax debts are addressed before a person leaves Australia.
When we may issue a DPO
We may issue a DPO if:
- you have an outstanding tax liability, and
- we believe the order is necessary to ensure the liability is paid or properly addressed before you leave Australia.
Before issuing a DPO, we consider your individual circumstances, including your engagement with us and any steps you have taken to address your tax debt.
What happens if a DPO is issued?
If we issue you with a DPO:
- you must not leave Australia while it is in force
- border authorities are notified and you will be prevented from leaving at the airport
- leaving Australia in breach of a DPO is an offence under tax law and may result in serious consequences, including penalties or imprisonment.
Your DPO stays in force until it is revoked by us or set aside by a court.
Applying to have a DPO revoked
Paying your tax debt
The quickest and most effective way to have a DPO revoked is to pay your tax liability in full.
Once your tax liabilities are paid or there is no ongoing risk that the debt will not be recovered, you can contact us and we will revoke the DPO as soon as practicable.
If you cannot pay
If you cannot pay your tax liability in full, you can contact us to discuss whether you can enter into an arrangement we consider satisfactory. For example, an arrangement supported by security over assets.
We may revoke a DPO if we are satisfied that:
- your tax liabilities have been, or will be, wholly discharged, or
- your tax liabilities are completely irrecoverable.
You can also formally apply to have your DPO revoked. Your application should include:
- the grounds on which you are seeking revocation
- supporting information and documents
- any other information you believe we should consider.
We regularly review DPOs to ensure it remains appropriate for them to stay in place. If we decide not to revoke a DPO, we will provide reasons for our decision.
Leaving Australia temporarily (departure authorisation certificates)
If your DPO is still in force and you need to travel overseas temporarily, you can apply for a departure authorisation certificate (DAC). A DAC is only granted in limited circumstances and may include specific conditions.
A DAC allows you to leave Australia for a limited period. It does not cancel or revoke your DPO. Once your authorised travel ends, the DPO remains in force.
To apply for a DAC, download and complete the Application for Departure Authorisation Certificate (PDF, 320KB)This link will download a file fillable form, which explains what information you need to provide and how we assess your request.
Your review rights
If you’re not satisfied with a decision to issue or maintain a DPO, you may seek an external review of our decision or apply to a court to seek an order setting aside the DPO.
Need help?
If we’ve issued you with a DPO or you want to discuss your options:
- contact the contact officer on your letter or phone us on 13 28 69, or
- speak to your registered tax agent.
Further information on the ATO’s approach to recovery action, including the use of DPOs, is available in Law Administration Practice Statement PS LA 2011/18 – Enforcement measures used for the collection and recovery of tax-related liabilities and other amounts.