Home / Business and Economy / Government Contractor Paid Zero Tax on $185M Revenue
Government Contractor Paid Zero Tax on $185M Revenue
11 Jan
Summary
- Telco Services Australia reported $185m revenue in 2024-25 but paid zero tax.
- The company held a multi-year, $90m-plus contract with Services Australia.
- Related party transactions totaling $166.5m virtually eliminated taxable profits.
Telco Services Australia, a key call centre operator for Services Australia, reported substantial revenues of over $185 million in the 2024-25 financial year and $130 million the previous year, yet paid no corporate tax during this period. These financial results coincide with the company's multi-year, $90 million-plus contract to manage call centre operations for the government agency.
Analysis of financial documents revealed significant related party transactions, amounting to $166.5 million in the most recent financial year. Experts suggest these transactions were structured to virtually eliminate reported profits, thereby avoiding tax obligations in Australia. Despite a reported financial loss in one period, payments to directors and key management personnel increased.
The TSA Group, which includes Telco Services Australia, operates across Australia and the Philippines with over 4,300 workers and holds contracts with major corporations. While a spokesperson stated that associated entities did pay taxes, the complex structure makes it difficult to publicly verify the group's overall tax contributions.
