Onshore ATO call centers under fire for low pay, delays

LONDON, UNITED KINGDOM — Outsourced onshore call centers that handle the majority of Australian Taxation Office (ATO) inquiries are facing mounting criticism over low pay, high staff turnover, and service delays, raising concerns for both workers and taxpayers. 

According to a report from The Guardian, the findings were based on interviews with staff and a recent ombudsman report that suggests the system is failing to meet the demands of the public and the professionals who rely on it.

Low pay and pressure fuel ATO call center turnover

A former employee at the ATO’s largest outsourced onshore call center, Probe Operations, described the work environment as “unbelievable.”

“The pressure they put these people under is extreme, every minute is monitored, and if you go over the call time, they’ll let you know about it immediately,” former employee said. 

“The whole thing stinks, [the ATO have] transferred these jobs off to private enterprise, and the pay is dramatically lower, leaving the companies to pocket the difference,” he added.

According to the Ombudsman’s report cited by The Guardian, outsourced staff, many with less than a year of experience, handle more than 85% of ATO calls. Yet staff turnover at for-profit operators reached 125% in 2024-25, compared with 31% for ATO internal staff, highlighting the challenges in maintaining experienced personnel. 

Workers typically earn around US$52,800 annually, with team leaders just above US$60,000, while ATO employees performing the same work earn over US$72,000.

“We do the best we can when it comes to vulnerable taxpayers and I’ve handled a number myself. It’s hard on outsourced staff as we get little to no support which feeds into our turnover rate,” another Probe employee added.

Tax agents slam ATO call center outsourcing model

Tax agents have also raised concerns about service quality. Susan Franks, from Chartered Accountants Australia and New Zealand, said the ATO’s phone system just doesn’t work. 

“We would prefer the ATO’s phone calls to be answered by somebody with experience in tax and a deep knowledge of tax, rather than contractors that are changing … and haven’t got tax experience,” Franks said.

The Australian Services Union echoed these concerns, with national secretary Emeline Gaske urging the government to ensure outsourcing arrangements do not “drive a race to the bottom on pay and conditions, and leave workers in insecure jobs.”

The case for offshore outsourcing

Onshore outsourcing was intended to keep jobs in Australia, but high turnover and operational inefficiencies have sparked renewed discussion of alternative models. 

“You get what you pay for; it’s not a good system for staff retention or the caller … you are constantly calling over supervisors, and some supervisors are the same as you, they don’t know any better,” a former Serco call center worker reflected.

Some industry observers suggest that carefully managed offshore outsourcing, paired with robust training and quality controls, could provide cost efficiencies while maintaining consistent service, presenting a potential solution for both taxpayers and call center employees.