The Australian Taxation Office approved a $223.3 million contract extension after concerns were raised about whether the provider was paying its workers fairly, AusTender documents have revealed.
ATO representatives approved a variation to Probe Operations Pty Ltd's contract for call centre services on April 16, bringing its total value to $432.9 million over four years.
Fair Work Commission proceedings were underway at the time of the decision to decide whether Probe Operations should pay its ATO contact centre workers more, under the federal government's same job, same pay laws.
The FWC held a preliminary hearing on November 25 for the same job, same pay application submitted by former Probe employee and ATO phone line operator Nathan Brunne.
Mr Brunne and the Community and Public Sector Union, which joined his FWC application, claimed that there was a structural pay gap between Probe and ATO call centre employees that widened at higher classifications.
If the application is successful, it could require Probe Operations to pay its workers up to 40 per cent more than current rates, in line with rates paid to staff employed directly by the ATO.
An ATO spokesperson said it undertook all procurement processes in accordance with Commonwealth procurement rules.
"External service providers remain part of our current operating model, supporting the delivery of essential frontline services to the community," the spokesperson said.
"In relation to the Fair Work Commission proceedings, the ATO does not oppose the making of the orders sought and does not wish to be heard, except to the extent necessary to assist the Commission.
"It would be inappropriate to comment any further while the proceedings remain before the Commission."
Extending the Probe Operations contract and other similar contracts only entrenched a broken labour hire model, CPSU national secretary Rebecca Fawcett said.
"(It's a model) that sees labour hire workers doing the same job as their ATO colleagues but being paid 40 per cent less and with worse conditions," Ms Fawcett said.
"Australians need to be confident they are speaking with properly trained, trusted public sector employees at the ATO - these labour hire arrangements do the opposite, they undermine service delivery for the millions of Australians who rely on them.
"The ATO should instead be looking at ways to invest taxpayers' dollars in building the public sector workforce - not locking in outsourcing arrangements that leave workers worse off.
"And the government needs to be bolder in directing the ATO to bring important public sector work back inhouse."
The federal government introduced the APS strategic commissioning framework in October 2023, to bring core work back into government agencies and restrict outsourcing.
The Australian Public Service Commission reported in its most recent public update, published in December 2025, that the ATO was one of the top-performers under the framework, having exceeded its target to reduce outsourcing by $48.5m in FY2024-25.
As reported by The Canberra Times in July, the federal government has since dropped its agency targets for reducing outsourcing.
The $223.3 million contract variation in April was the sixth variation since the ATO signed off on the original agreement with Probe Group in July 2024, making it one of the agency's largest private service providers.
Probe Operations' parent company Probe Group markets its ability to "bridge skill gaps" and "scale your workforce". Probe Group is majority-owned by private-equity firm KKR, and employs more than 19,000 people across the world. A Probe Group spokesperson declined to comment
First published in Canberra Times on September 17, 2026 as 'Tax office hands firm $223m contract boost despite same job, same pay claim'. Licensed by C©PYRIGHTAGENCY. You must not copy this work without permission. +612 9394 7600 copyright.com.au
