The Australian Taxation Office (ATO) has paid a private debt collection firm more than $42.8 million in contracts since 2022 to chase unpaid taxes, including from welfare recipients. However, an investigation reveals that the company, Recoveriescorp, and its parent entity have paid zero corporate tax since securing this lucrative government work.
Profits, Losses, and Zero Tax Liability
According to an analysis of public accounts, Recoveriescorp's parent company, Symbos Bidco, recorded substantial revenue streams, with income surpassing $100 million in the 2025 financial year. Despite this significant turnover, the entity has reported a series of annual losses.
These losses are attributed to high business expenses, including elevated consulting fees and substantial interest repayments on loans from unnamed financiers. This financial structure has resulted in no corporate tax being payable to the Australian government, despite the firm's income being derived from government contracts.
A spokesperson for Recoveriescorp stated the business was in a "growth phase" and was reinvesting in systems and people. They confirmed the company was "fully compliant with their tax and regulatory obligations."
Questions Over Procurement and Financial Practices
Mark Zirnsak, from the Tax Justice Network Australia, raised serious questions about the accounts. "Why is it a loss-making entity? It’s almost like it’s a not-for-profit, and what private business runs as a not-for-profit?" he said.
The analysis also uncovered that Symbos Bidco has paid hundreds of thousands in advisory fees to the same firm that audits its accounts—a legal but contentious practice. Furthermore, it is paying an interest rate in excess of 7% on a loan facility of nearly $58 million, with the purpose of the large loan unclear.
The ATO, which referred over 355,000 taxpayers to Recoveriescorp between January 2024 and October 2025, declined to comment on the firm's tax affairs due to confidentiality laws. An ATO spokesperson said procurement was undertaken in line with Commonwealth rules.
A Pattern of Outsourced Services Running at a Loss
Recoveriescorp, ultimately controlled by private equity firm Allegro, is the second major government contractor identified as operating at a financial loss with no tax payable. This follows revelations about an outsourced call centre operator for Centrelink, Telco Services Australia.
The Tax Justice Network has argued that the tax compliance threshold for winning government contracts in Australia is too low and should be strengthened. Meanwhile, the Commonwealth Ombudsman has reported a spike in complaints regarding the ATO's use of third-party debt collectors, urging the agency to be more considerate of individual circumstances.
The situation highlights ongoing debates about the transparency, accountability, and ethics of outsourcing core government functions to private, profit-driven entities.
