A call centre operator that won a major contract with Centrelink paid no corporate tax for two years, despite generating substantial revenue. Telco Services Australia reported over £185 million in revenue in 2024-25 and £130 million the previous year, but recorded no taxable income, according to financial documents.
The company, headquartered in Perth, is a subsidiary of TSA Group, which operates five contact centres in Australia and the Philippines. It holds a multi-year contract worth more than £90 million to run call centre operations for Services Australia, the agency responsible for social security.
Jason Ward, a tax analyst, said the company appeared structured to avoid reporting and tax obligations. The financial statements reveal £166.5 million in related party transactions last year, which Ward said “virtually eliminate profits” and result in no tax payable. Payments to directors increased despite a reported financial loss.
A TSA Group spokesperson said that while Telco Services did not record taxable income, other associated entities paid tax, and the arrangements were audited by an independent auditor. The spokesperson added that these entities are not required to publicly report their taxes, and Telco Services has paid tax in prior years.
Staff working on the Centrelink contract are employed by a separate entity, Trimatic Management Services, which received £5 million in grants from the Western Australian government in 2024. Services Australia said it relies mainly on permanent public service staff, supplemented by contractors.
