How did Telco Services Australia pay zero tax on $185 million revenue?

The company engaged in $166.5 million in related party transactions, which appeared to eliminate reported profits and thus taxable income for the financial year.

What Services Australia contract did Telco Services Australia hold?

Telco Services Australia operated call centre services for Services Australia under a multi-year contract worth over $90 million.

Is Telco Services Australia's tax avoidance legal?

There is no suggestion the company or its directors have acted illegally; however, experts question its tax structuring.

Home / Business and Economy / Government Contractor Paid Zero Tax on $185M Revenue

Government Contractor Paid Zero Tax on $185M Revenue

11 Jan

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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.

Government Contractor Paid Zero Tax on $185M Revenue

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.