What the ATO can and can't do: your questions answered
In plain English
The ATO has powers no ordinary creditor has: it can take money from a bank account or wages without a court order, keep your refund, and in extreme cases stop you leaving the country. It also has limits. Here is where each line sits.
Want the full guide?
These are short, direct answers. The complete picture is in Can the ATO take my house?.
Can the ATO see my bank account?
Yes, in practice. The ATO does not watch your account live, but banks report interest and account details to it every...
Answer →Can the ATO take money from my bank account without warning?
Yes. The ATO can send a garnishee notice straight to your bank without a court order, and the bank must pay out before...
Answer →Can the ATO take money from a joint account?
Usually not, if only one account holder owes the debt. A garnishee notice reaches money the bank owes to you.
Answer →Can the ATO freeze my bank account?
Not by itself, no. The ATO's tool for bank accounts is a garnishee notice, which takes money rather than locking it.
Answer →Can the ATO take my super?
Not while it is locked in a super fund. The ATO can serve a garnishee notice on your fund, but by its own policy the...
Answer →Can the ATO keep my tax refund to pay a debt?
Yes. The ATO is required by law to use your refund or credit to pay down a tax debt.
Answer →Can the ATO take an inheritance?
Yes, once it reaches you. Money you inherit is not protected from a tax debt.
Answer →Can the ATO take my Centrelink payments?
No, not by garnishee. The ATO's stated policy is that it will not garnishee Centrelink or Department of Veterans'...
Answer →Worried about what the ATO can actually do to you?
A specialist can tell you which of those powers apply to your debt and which ones do not. Free, confidential call.
Can the ATO garnish my wages, and how much?
Yes, and usually up to 30 cents in the dollar of your after-tax pay.
Answer →Can the ATO contact my employer?
Yes, but almost only through a garnishee notice. The ATO does not ring employers to discuss your debt.
Answer →Can the ATO cancel my ABN over a debt?
Not because of the debt, no. Owing tax is not a ground for cancelling an ABN.
Answer →Can you go to jail for tax debt in Australia?
No. You cannot be jailed for owing the ATO money. An unpaid tax debt is a civil debt.
Answer →Can the ATO stop me leaving Australia?
Yes. The ATO can issue a departure prohibition order (DPO) that stops you leaving Australia, and it does not need a...
Answer →Can the ATO make me bankrupt?
Yes. The ATO can make an individual bankrupt, but only through the courts and only at the end of a long sequence.
Answer →Can the ATO wind up my company?
Yes. The ATO can apply to court to wind up a company that has not paid its tax debt, and it uses that power regularly.
Answer →Can the ATO come to my house or business?
Yes, the ATO has a legal power to enter your business or home without a warrant, but it is used for audits and...
Answer →How far back can the ATO go for unpaid tax?
For collecting an assessed debt, there is no time limit at all.
Answer →Can the ATO seize my car, tools or other assets?
Not directly. The ATO has no power to turn up and take a car, a ute, tools or equipment.
Answer →Can the ATO put a caveat on my property?
Not simply because you owe tax. A caveat protects an interest in land, and an unpaid tax debt on its own does not give...
Answer →Can the ATO shut down my business?
The ATO cannot close a business by decree, revoke your trade licence or padlock the door.
Answer →Can the ATO see my PayPal, Wise or crypto accounts?
Yes, in practice. The ATO receives crypto exchange data on hundreds of thousands of people a year, gets overseas...
Answer →