Australians have been warned their tax time phone queries are being handled by outsourced workers earning 40 per cent less than Australian Taxation Office employees, as a key union seeks to use Labor’s “same job, same pay” laws to lift the wages of labour hire workers
In landmark action with implications for labour hire companies in white-collar industries, the Community and Public Sector Union is trying to force “profit-driven” labour hire firms Probe Operations, Serco and Concentrix to lift their wage rates into line with ATO employees.
The ATO said on Wednesday it did not oppose the CPSU claim to the Fair Work Commission but did not wish to be heard during the proceedings, “except to the extent necessary” to assist the FWC.
Image caption: CPSU national secretary Melissa Donnelly says ATO work should be done by ATO employees not lesser-paid labour hire workers.
The Australian Taxation Office said it was not opposing the CPSU claim to the Fair Work Commission
In a reply submission, the CPSU rejected arguments by the labour hire companies that they were exempt from the “same job, same pay” legislation because the work performed by their employees was for the provision of a service rather than the supply of labour.
The CPSU said the outsourced call centre workers answered the same calls as ATO employees, used ATO systems and equipment, and followed the ATO’s workplace policies and procedures, and therefore were entitled to the same pay and employment conditions.
CPSU national secretary Melissa Donnelly said millions of Australians were filing their tax returns “blissfully unaware that the call centre workers patiently helping them don’t actually work for the tax office and are earning up to 40 per cent less than the ATO workers doing exactly the same job”.
“Labour hire companies claim they provide a ‘specialised service’, but there’s nothing specialised about answering ATO calls, using ATO systems, following ATO procedures and doing work directed by the ATO,” Ms Donnelly said.
“These outsourced call centre workers are doing the same job as their ATO counterparts, but with worse pay and conditions. This is ATO work. It should be done by ATO employees.”
The FWC is required to consider the extent to which the employer is involved in matters relating to the performance of work, including the degree to which the employer directs, supervises or controls the work of the regulated employees in practice.
The CPSU says the ATO sets performance benchmarks, determines work priorities, and provides the necessary training and resources to ensure compliance with its standards and objectives.
While the labour hire providers each manage rosters and provide day-to-day supervision, the union says that supervisory function does not constitute meaningful involvement in the performance of work as it operates within an ATO-controlled framework and does not involve the use of independent judgment about how the work is to be performed.
“The responsibilities retained by each of the labour hire providers. including payroll, human resources, and compliance with employment laws, are matters relating to the employment relationship rather than to the performance of work, and are therefore of limited weight under (the legislation),” the CPSU submission says.
The CPSU made its submissions in support of a former ATO call centre worker who took his case to the commission, claiming that as a labour hire employee he was forced to work for less pay, and under worse conditions than the ATO’s directly employed staff.
The union said the outsourcing of core ATO work was a “blatant rejection” of the Albanese government’s Strategic Commissioning Framework, which is meant to force government agencies and departments to bring outsourced work back within the public service.
According to AusTender data, labour hire companies hold contracts worth more than $630m.
First published: in the Australian on July 15, 2026 as “Outsourced Australian Taxation Office staff on 40 per cent less pay spark union fight”, By Ewin Hannan.
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