A major call centre operator contracted by the Australian government to handle Centrelink enquiries paid no corporate tax for two consecutive years, despite generating hundreds of millions in revenue, a new investigation has revealed.
Multi-Million Pound Revenue, Zero Tax Paid
Financial documents show that Telco Services Australia (TSA), a Perth-headquartered company, reported over $185 million in revenue for the 2024-25 financial year but declared no taxable income. The previous year, it recorded $130 million in income and also paid zero corporate tax.
This two-year period directly coincided with the company securing and operating under a multi-year contract worth over $90 million to run call centre operations for Services Australia, the agency responsible for social security payments like Centrelink.
Complex Structure and Related Party Transactions
Jason Ward, principal analyst at the Centre for International Corporate Tax Accountability and Research, stated the business appeared structured in ways designed “to have avoided reporting and tax obligations in Australia.” He called for greater transparency for firms bidding for public contracts.
The lodged documents highlight $166.5 million in related party transactions in the last financial year alone, with no detail on the identities of these related parties. Ward explained these payments “virtually eliminate profits” for the Telco Services entity, resulting in no tax liability.
Notably, payments to directors and key management personnel increased during this period, even as the company reported a financial loss.
Group Defence and Broader Outsourcing Trend
A spokesperson for the TSA Group defended the arrangements, stating that while Telco Services did not record taxable income, “other associated entities did and the appropriate amount of tax has been paid by them.” They added the tax affairs were audited by a large independent firm.
The revelation comes amid growing scrutiny of the government's reliance on outsourced services. Guardian Australia reports that most calls to the Australian Taxation Office are now answered by workers at three private operators, with complaints of deteriorating service from tax agents.
Services Australia stated its contact centre network is built on a base of permanent public service staff, supplemented by contractors. Centrelink also uses another outsourcer, Concentrix, for some call centre operations.
