In a concerning twist, a private debt collector hired by the Australian Taxation Office (ATO) to pursue unpaid taxes has not paid any corporate tax itself, despite securing contracts worth tens of millions of dollars.
The parent company of the outsourced operator, Recoveries Corp, has recorded substantial income streams in its most recent annual accounts, with revenues exceeding $100 million in 2025. However, high consulting fees and elevated interest repayments to unnamed financiers have resulted in a series of annual losses, effectively eliminating any corporate tax liability.
The ATO has awarded Recoveries Corp contracts worth $42.8 million since 2022, according to the government tender portal. The private equity-backed firm is one of the largest subsidiaries of Symbios Bidco, a controlling entity that has paid hundreds of thousands of dollars for advisory services to the same firm that audits its accounts – a lawful but concerning practice.
Mark Zirnask, the secretariat at the Tax Justice Network Australia, has raised questions about the financial arrangements, noting that “it’s almost like it’s a not-for-profit, and what private business runs as a not-for-profit?”
The ATO has defended its procurement processes, stating that it “undertakes procurement processes in accordance with the commonwealth procurement rules.” However, the tax ombudsman has reported a spike in complaints over the ATO’s use of third-party debt collectors and has warned the agency to be considerate of individuals’ circumstances.
This case highlights the broader issue of government agencies relying on private firms to carry out essential functions, with concerns raised about the tax compliance, training, and working conditions of outsourced call centre staff.