Two private companies, Telco Services Australia and Recoveriescorp, which hold significant contracts with Australian government agencies, have reported either no corporate taxable income or annual financial losses during periods when they generated substantial revenues. This financial reporting has led to scrutiny from tax accountability organizations regarding their financial structures and tax contributions, while both companies maintain compliance with their taxation obligations.
Telco Services Australia's Financial Reporting
Telco Services Australia, a Perth-headquartered operator for Centrelink call centres under Services Australia, reported no corporate taxable income for several years. This includes the 2024-25 financial year, during which it generated over $185 million in revenue, and the previous year, with $130 million in revenue. These periods coincide with the company's multi-year contract, valued at over $90 million, for managing call centre operations for Services Australia.
Financial documents filed by the company on December 24 indicated $166.5 million in related party transactions in the last financial year. Jason Ward, a principal analyst at the Centre for International Corporate Tax Accountability and Research, stated that these payments appeared to "virtually eliminate profits," resulting in no tax payable by the company. Ward suggested the business's structure might have allowed it to avoid reporting and tax obligations in Australia and advocated for increased transparency for companies bidding on public contracts. The documents also showed that payments for directors and key management personnel increased during the 12-month period, despite the company reporting a financial loss. There has been no assertion that the company or its directors engaged in illegal activities.
A spokesperson for TSA Group, Telco Services Australia's parent entity, stated that while Telco Services itself did not record taxable income, "other associated entities did and the appropriate amount of tax has been paid by them." The spokesperson added that an independent auditor had assessed the taxation arrangements and payments. They noted that the entities which paid the tax were not subject to public reporting requirements and that Telco Services had paid tax in previous years. TSA described the related party transactions as costs for services provided by associated companies, which are simultaneously recorded as revenue by those associated companies.
Telco Services Australia is an operational arm of the Perth-based TSA Group, which employs over 4,300 workers across five contact centres in Australia and the Philippines. The group also manages outsource operations for other major corporations. An analysis of TSA Group's structure revealed that its various businesses infrequently lodge public financial accounts, making it challenging to publicly verify the group's total tax payments or the flow of related party transactions among entities.
Recoveriescorp's Financial Reporting
Recoveriescorp, a private debt collection company holding contracts with the Australian Taxation Office (ATO), has also reported no corporate tax payable. Its parent entity, Symbos Bidco, recorded over $100 million in revenue during 2025.
Symbos Bidco's financial records indicate substantial income alongside significant business expenses, including high consulting fees and elevated interest repayments to unnamed financiers. These expenses have resulted in a series of annual losses, leading to no corporate tax liability. Mark Zirnsak from the Tax Justice Network Australia raised questions regarding the company's loss-making status.
Recoveriescorp's spokesperson stated that the business and its parent are "fully compliant with their tax and regulatory obligations," attributing the financial structure to reinvestment during a growth phase.
The ATO referred more than 355,000 taxpayers to Recoveriescorp between January 2024 and October 2025, and the firm has been awarded $42.8 million in contracts by the ATO since 2022. Recoveriescorp staff have operated within ATO offices for several years, with services expanding to include offsite debt collection on the agency's behalf. Recoveriescorp is a key subsidiary of Symbos Bidco and is ultimately controlled by the private equity firm Allegro, which acquired the company in 2024. Symbos Bidco has reportedly paid advisory services fees to its auditing firm, a practice that a recent parliamentary committee recommended against. The company also holds significant loan facilities, including a nearly $58 million loan at an interest rate exceeding 7% and an $86 million loan from a related party. Recoveriescorp did not provide specific reasons for these loans or the use of a combined firm for audit and advisory services when questioned.
The ATO declined to comment on the specific tax affairs of Recoveriescorp or its parent company, citing confidentiality laws, and affirmed its adherence to commonwealth procurement rules.
Industry Context and Advocacy
Both Telco Services Australia and Recoveriescorp operate within the broader context of Australian government agencies increasingly relying on outsourced services. Services Australia utilizes a mixed workforce of permanent public service staff and contractors, including other outsource operators. Similarly, the ATO relies on several outsource operators for services, including Probe Operations, Concentrix Services, and Serco, and the majority of calls to the Australian Taxation Office's phone lines are answered by staff from private operators. Attempts to reduce this reliance on outsourced call centres have reportedly stalled.
The Tax Justice Network Australia advocates for stronger tax compliance thresholds for companies seeking government contracts in Australia. Reports from staff at outsource call centres for agencies like the ATO and Centrelink have cited issues with training, morale, and high attrition rates. The tax ombudsman has also reported an increase in complaints regarding the ATO's use of third-party collectors for tax debts.