Australian tax authorities are stepping up their use of travel bans on airport departure to prevent big debtors from absconding, while going after a book value of $50 billion in collectables debt with tax obligations for GST sure to bring harder action.
In the report dated January 7, the Australian Taxation Office revealed that the use of departure prohibition orders is actively employed, where such an order prohibits an individual from leaving the country.
If the Commissioner of Taxation suspects that the person might leave without settling his tax debt and reaching a satisfactory arrangement regarding the same.
The ATO has issued 21 departure prohibition orders since July 2025 which is a significant increase on the number of orders that were issued during the entire previous financial year, the ATO explained the rationale behind the increased crackdowns.
The ATO is working to improve payment behavior and reduce the time it takes to recover outstanding debts where the ATO believes the individual has the ability to repay the debt but is choosing not to do so.
ATO Assistant Commissioner Anita Challen says, “Taxpayers with major debts owed to the ATO who believe they can breeze off in their own way without settling their debt to the community in the process are advised to reconsider their visa aspirations.”
Although the tax office stated that it would normally like to see pre engagement and payment facilitation in advance.
It indicated that it has less tolerance for those it feels prioritize international travel rather than discharging their liabilities and those that it feels are attempting to evade the reach of the ATO.
In one recent instance, it said that a traveler did not have access to his international plane in the early hours of the morning because of a departure exclusion order.
The step has special significance for businesses as the ATO has specifically identified debts related to employee entitlements as well as trust monies.
The ATO also specifically stated its concern for debts related to unpaid employee superannuation contributions as well as amounts paid to employees but deducted, along with GST paid by its customers but not paid to them.
The ATO also emphasized that travel bans are often imposed in conjunction with other powers of collection, particularly where the efficacy of those actions would be circumvented were a debtor to leave Australia.
It referred to measures including director penalty notices, garnishee notices, referrals to credit reporting bureaus and winding up applications as examples of the harder line being taken against people who refuse to engage.
For taxpayers caught by a departure prohibition order the practical effect can be immediate.
The ATO said individuals affected by such an order are notified in writing and advised of the basis on which the decision was made and of their rights to apply for variation and/or object.
It also added that in certain circumstances, an application may be made for a departure authorization certificate, which allows temporary travel.
The warning comes as debts and insolvencies push up on the tax system and as policymakers keep a watchful eye on compliance settings affecting revenue, competition and worker entitlements.
In tying the travel bans to unpaid superannuation and third party held taxes, the ATO is framing the crackdown as a protection of budget measure and a fairness issue for employees and compliant businesses.
