MGI Adelaide is back on board for 2026 and ready to support you in the year ahead. As part of keeping our clients informed, we would like to highlight a recent focus area for the Australian Taxation Office (ATO).
The ATO has increased its focus on debt recovery and is making greater use of Departure Prohibition Orders (DPOs) to enforce payment of significant tax debts. A DPO prevents an individual from leaving Australia where there is a substantial unpaid tax liability and insufficient action has been taken to address it.
Since July 2025, the ATO has issued 21 DPOs, already exceeding the number issued across the entire previous financial year.
While the ATO continues to prefer early engagement through reminders, correspondence and tailored support, it is taking a firmer approach where taxpayers fail to respond or deliberately avoid their obligations. In recent cases, individuals have been stopped at the airport and prevented from boarding international flights due to an active order.
This increased activity forms part of the ATO’s broader strategy to reduce its collectable debt balance of approximately $50 billion. Particular focus remains on unpaid employee superannuation, PAYG withholding amounts and GST that has been collected but not remitted.
DPOs are being used alongside other enforcement measures, including director penalty notices, garnishee actions, credit reporting and winding up proceedings.
The ATO’s position is clear. Ignoring tax debts or avoiding contact is no longer a viable option. Taxpayers experiencing difficulty meeting their obligations are encouraged to seek assistance early, before matters escalate.
If you have outstanding ATO debts or concerns about your current position, the team at MGI Adelaide can assist with advice, negotiations and practical solutions.
