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The Australian Taxation Office has sharply escalated its use of travel bans on multi-million-dollar tax debtors after scrutiny over why some individuals were still able to leave the country.
Adrian Mtungwazi left Australia in May last year allegedly owing more than $6.4 million to the tax office, employees and other creditors.
Data obtained by this masthead shows the ATO used its powers to stop people who owed huge sums of tax from leaving Australia just 46 times over the past six financial years, from July 1, 2019.
The tax office said in a statement released today it has already issued 21 travel bans since July 2025.
The figure marks a sharp increase on previous years, with just 14 bans issued in the 2024–25 financial year, nine in 2023–24, four in 2022–23 and only three in 2021–22.
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The bans, known as departure prohibition orders, prevent individuals with serious tax debts from leaving Australia unless they pay what is owed or make approved arrangements with the tax office.
Despite having these bans in place, the tax office said it still allowed some people to leave the country, providing authorisation in “legitimate circumstances where temporary travel is appropriate”.
In the last six years, 17 travel bans were temporarily lifted, so taxpayers could travel overseas.
The crackdown follows reporting by this masthead which exposed how Adachi Disability Services director Adrian Tafari Mtungwazi left Australia in May 2025, despite allegations his collapsed NDIS provider owed more than $6.4 million to the tax office, employees and other creditors.
A preliminary liquidator’s report alleged company funds were diverted into offshore property, luxury vehicles and related entities, while more than 80 workers were collectively owed about $450,000 in unpaid wages and superannuation.
ATO Assistant Commissioner Anita Challen.Credit: Australian Tax Office
At the time, the ATO declined to say whether a travel ban had been imposed comment on Mtungwazi, citing taxpayer confidentiality laws.
There is no suggestion that Mtungwazi was subject to a travel ban when he left the country.
A tax office spokesperson previously told this masthead DPOs were used only in “very specific circumstances”.
But in its statement today, the ATO said it was now moving faster to deploy its strongest powers to protect public revenue, particularly where unpaid debts involve employee superannuation and wages, or collected from customers as GST, but not passed on to the government.
“Taxpayers with significant debts who think they can skip the country without paying what is owed to the community should think again,” ATO Assistant Commissioner Anita Challen said.
“We think most Australians would expect businesses to pay their employees’ superannuation before they plan an overseas holiday.”
The shift comes as the ATO seeks to reduce its $50 billion collectable debt book, with DPOs now being used alongside director penalty notices, garnishees, wind-up applications and referrals to credit reporting agencies.
In the Mtungwazi case, liquidator Andrew Yeo of Pitcher Partners alleged the Adachi directors had drawn more than $2.3 million in director loans, purchased a Ferrari for personal use, and funnelled hundreds of thousands of dollars offshore while the company was insolvent.
Any alleged breaches will ultimately be assessed by the Australian Securities and Investments Commission, which has the power to bring civil proceedings or refer matters for criminal prosecution.
No charges have been laid.
A spokesperson for Pitcher Partners said the recovery process was ongoing, and a further report would be provided to creditors once recovery avenues were more advanced.
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