Australian Authorities Step Up Action Against Tax Dodgers at Start of 2026

Australian regulators and tax authorities have kicked off 2026 with a renewed focus on companies and individuals that have failed to meet their tax obligations, signalling a tougher enforcement approach against unpaid tax debts.

The Australian Taxation Office (ATO), alongside the corporate watchdog Australian Securities and Investments Commission (ASIC), has begun taking action against people responsible for managing corporations that have neglected to pay tax liabilities in previous years. The coordinated push reflects a broader effort to hold company directors and managers accountable for outstanding debts owed to the public purse.

Earlier this month, the ATO issued a statement warning Australians with unpaid tax bills that attempting to evade their obligations by leaving the country is no longer a viable strategy. The tax authority disclosed that it had issued 21 departure prohibition orders (DPOs) in the six months leading up to the end of December last year, and made it clear that such measures are likely to be used more frequently against delinquent taxpayers.

ATO assistant commissioner Anita Challen said the agency’s primary aim is to encourage people to pay what they owe on time, but stressed that stronger enforcement action will be taken when necessary. She said the ATO would not hesitate to stop individuals with substantial tax or superannuation debts from travelling overseas.

“Taxpayers with significant debts to the ATO that think they can skip the country without paying what is owed to the community should think again,” Challen said.

“We think most Australians would expect businesses to pay their employees’ superannuation before they plan an overseas holiday.

“The consequences of being issued a DPO are serious and confronting. A taxpayer issued a DPO was recently pulled aside and prevented from boarding an international flight out of Australia in the early hours of the morning,” she revealed.

However, departure prohibition orders are not the only enforcement tool being used to rein in those who fail to pay company tax debts. ASIC has also taken decisive action, banning two individuals involved in running agribusinesses after uncovering multiple breaches, including failure to pay tax.

Jimmy Yang and Freda Feng, who served as directors of three failed agriculture-sector companies — UWE Hay Pty Ltd, United World Enterprises, and UWE – Grifith Property Pty Ltd — were handed the maximum five-year banning orders. The penalties were imposed not only because of their involvement in a corruption scandal, but also due to a series of serious failures in their duties as company directors.

Among the breaches cited was the failure to pay taxes owed to the government. ASIC also found that Yang and Feng had failed to maintain proper books and records for two of the companies, alongside breaching solvency-related obligations under Australian law. The actions taken by regulators underline a clear message that directors who neglect their tax responsibilities, or misuse corporate structures, will face significant consequences.

By fLEXI tEAM