Current and former employees at the Australian Taxation Office's outsourced call centres have come forward with shocking claims about working conditions they describe as dramatically inferior to those enjoyed by direct ATO staff.
Extreme Pressure and High Attrition
One worker, identified only as Rob, revealed the staggering staff turnover within these private operations. His cohort of 16 workers hired by private operator Probe Operations saw three colleagues quit immediately after training began. Within just six months, only four staff from the original group remained.
"I was just shocked about what goes on in these places - it's unbelievable," Rob told investigators. "The pressure they put these people under is extreme, every minute is monitored, and if you go over the call time, they'll let you know about it immediately."
Official data confirms the scale of the problem. In 2024-25, staff turnover across the outsourced centres reached 125%, compared to just 31% for the ATO's internal workers. This means the entire workforce effectively turns over annually, with an additional quarter of staff leaving.
Significant Pay Disparity and Problematic Bonus Systems
The investigation uncovered substantial pay differences between outsourced and direct employees. Workers like Rob typically earn about $26.70 per hour, amounting to approximately $52,800 annually, while ATO direct employees performing the same duties generally earn over $72,000.
A controversial bonus system adds further pressure. Workers can increase their pay by $2 per hour if they average 25 calls daily over a fortnight. However, supervisors can declare a "strike" for inadequate responses, voiding the bonus entirely.
Denise, another Probe employee, described the incentives as so vague she "genuinely doesn't know how they work." She added that team performance bonuses supposedly resulted in pizza parties, though she'd never witnessed this happening.
Service Quality Suffers as Tax Agents Complain
The consequences extend beyond worker dissatisfaction to directly impact service quality. The Tax Ombudsman has received numerous reports of deteriorating service on ATO phone lines, with tax agents frequently encountering staff unable to provide informed responses.
According to an ombudsman's report released last month, outsourced workers - half with less than a year's experience - answer more than 85% of ATO calls, including those from tax professionals.
Susan Franks from Chartered Accountants Australia and New Zealand expressed serious concerns, stating "the phone system just doesn't work" and calling for experienced staff with deep tax knowledge rather than constantly changing contractors.
The Australian Services Union's national secretary, Emeline Gaske, urged the government to focus on procurement policies that deliver secure jobs and fair pay, warning against arrangements that "drive a race to the bottom on pay and conditions."
Three major companies share call centre contracts with the ATO worth $316.5 million: KKR-owned Probe Operations, Nasdaq-listed Concentrix Services, and British multinational Serco.
Despite multiple requests for comment, both the ATO and the private operators declined to respond to questions about staff turnover, pay conditions, and incentive schemes, leaving workers and taxpayers awaiting solutions to this growing crisis.
