Debt Collection: ATO’s outsourced teams describe ‘battery hens’ conditions
Published 12: 00 PM ET, March 23, 2026.
The tax office’s use of external contractors has created a stark split in workplace conditions for debt collection teams, former workers say. In the ATO workplace in Dandenong, Melbourne, staff embedded by Recoveriescorp share kitchens and bathrooms with public servants but receive lower pay and face tight controls on basic breaks. The outsourcing surge is tied to an ATO drive to recoup more than $50 billion in outstanding collectible debt.
Most urgent facts first
Former employees of Recoveriescorp describe a work environment they compare to “battery hens, ” with strict monitoring and pressure to make recovery calls on behalf of the tax office. One former worker said occupational safety “just went out the window” and that staff would be pulled up for taking too long going to the toilet. A second former Recoveriescorp employee highlighted extreme resignation rates, warning that constant turnover leaves taxpayers dealing with inexperienced staff making consequential decisions about repayments.
The ATO deployed Recoveriescorp alongside three major call-centre operators: Probe Operations, Concentrix Services and Serco. The tax office moved more than 355, 000 taxpayers to Recoveriescorp between January 2024 and October 2025. Recoveriescorp has been awarded $42. 8 million in contracts since 2022 and has paid zero corporate tax in recent years. The expanded outsourcing comes amid the ATO’s stated effort to recover a significantly larger stock of debt that grew during the pandemic.
Debt Collection teams kept in the shadows
Workers embedded into ATO offices fall into two categories: “insource” Recoveriescorp employees instructed to tell taxpayers they are from the tax office, and “outsource” staff who operate under the debt collector’s name. Former staff say this arrangement keeps many outsourced workers out of sight and contributes to inconsistent outcomes for taxpayers seeking help. The Tax Ombudsman’s recent review described ATO decision-making as “inconsistent. ” The ATO declined to provide updated referral figures when asked.
Immediate reactions from inside and oversight
“We were just like battery hens sitting at our desk making calls to collect debts, ” said one former worker, who requested anonymity because of employment confidentiality provisions. Another former Recoveriescorp employee said, “The tax office is well aware that this is happening because they would have the attrition numbers, ” adding that rising complaints would also be visible to the agency. A Recoveriescorp spokesperson said the company was unable to comment due to contractual restrictions. The Tax Ombudsman review is cited as noting inconsistency in the ATO’s approach.
Quick context
The ATO is one of the most prolific users of outsourced labour, spending more than $316 million in 2024–25 on external providers. The agency has framed the move to contractors as part of a larger push to recoup outstanding collectible debt that ballooned during the pandemic.
What’s next
Watch for further scrutiny from the Tax Ombudsman and for any formal responses from the ATO as complaints and attrition figures continue to be central to the debate. Former staff warn that unless staffing and oversight change, taxpayers may keep facing inconsistent outcomes while outsourced teams remain underpaid and tightly policed. Any future shifts in how accounts are allocated or how Recoveriescorp operates will be closely watched for their impact on debt collection.
