The Australian Taxation Office (ATO) has paid a private debt collection firm more than $42.8 million (£34 million) in contracts since 2022 to chase unpaid taxes, despite the company itself paying zero corporate tax, a Guardian Australia investigation has revealed.
Profits and Losses: A Taxing Question
The debt collector, Recoveriescorp, and its ultimate parent entity, Symbos Bidco, have recorded no corporate tax liability in their two most recent annual accounts. This is despite the group generating substantial revenue, which surpassed $100 million in the 2025 financial year.
Financial statements show the company has posted a series of annual losses. These are attributed to high business expenses, including significant consulting fees and elevated interest repayments on large loans from unnamed financiers. Consequently, no corporate tax has been payable.
Mark Zirnsak, secretariat at the Tax Justice Network Australia, questioned the arrangement. "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.
Government Contracts and Private Equity Backing
According to the government tender portal, the ATO has awarded Recoveriescorp contracts worth $42.8 million since 2022. Between January 2024 and October 2025 alone, the tax office referred over 355,000 taxpayers to the firm for debt recovery.
Recoveriescorp, which is ultimately controlled by the private equity firm Allegro, has expanded its operations. Its staff have worked inside ATO offices for years and now also pursue debts offsite under its own name on the agency's behalf.
A spokesperson for Recoveriescorp stated the business and its parent were "fully compliant with their tax and regulatory obligations." They attributed the financial position to a "growth phase," with profits being reinvested into systems and staff.
Scrutiny Over Loans and Advisory Services
The company's accounts have drawn further scrutiny for other financial arrangements. Symbos Bidco has paid hundreds of thousands in advisory fees to the same firm that audits its accounts—a lawful practice but one recently discouraged by a parliamentary committee.
Furthermore, the parent company is paying an interest rate exceeding 7% on a loan facility of nearly $58 million, though the reason for needing such a large sum is unclear. It also has access to an $86 million loan from a related party.
Recoveriescorp did not respond to questions about the purpose of these loans or its audit arrangements. The ATO declined to comment on the company's tax affairs due to confidentiality laws, stating it follows Commonwealth procurement rules.
This case follows a similar revelation by Guardian Australia concerning an outsourced Centrelink call centre operator that also paid no corporate tax. The Tax Justice Network has argued that tax compliance thresholds for winning government contracts in Australia are too low and require strengthening.
The tax ombudsman has also reported a spike in complaints related to the ATO's use of third-party debt collectors, urging the agency to be more considerate of individuals' circumstances.
