A Fair Work Commission (FWC) test case filed by an outsourced Australian Taxation Office (ATO) call center employee could reshape government outsourcing. According to an Accounts Daily report, industry experts warn that it might erode the cost advantage that underpins the contact center contracting model.
The “same job, same pay” case was filed by Nathan Brunne, an employee of Probe Operations, who performs call center duties for the ATO. It challenges the wage gap between BPO team and ATO employees, arguing that contractors doing comparable work should receive equivalent pay and conditions.
The Community and Public Sector Union (CPSU) joined the case, asserting that outsourced workers perform core, ATO-directed duties and function as part of an internal workforce. The union argues this meets the threshold for a regulated labor hire arrangement, warranting equal pay, training, and working conditions.
Case could redefine government outsourcing
During a preliminary hearing, recruitment specialist James Witcombe, director of SMAART Recruitment, warned the case could “upend the business model” that makes outsourcing viable for government agencies.
“The ATO outsources this type of work largely because providers can do it more cheaply,” Witcombe told Accountants Daily. “If that cost advantage disappears, it could transform the entire outsourcing landscape.”
SMAART’s 2025 Contact Centre Best Practice Report highlights the pay gap driving the dispute. It found public sector customer service agents earn $70,475 plus super, compared with $53,240 plus super for BPO staff.
With an estimated 2,000 outsourced staff working through Probe, Concentrix, and Serco, the CPSU estimates wage parity could add $34.5 million annually in labor costs for BPO providers.
Witcombe noted the added costs would likely be passed back to the ATO. “Margins are extremely thin on these contracts,” he said. “If contractors must pay public sector rates, they’ll have to charge higher fees.”
He added that low pay contributes to high turnover and service quality problems. A review by Tax Ombudsman Ruth Owen found that outsourced agents handle 85% of calls, but only 44% have over a year’s experience, leading to “inconsistent advice” and reduced service quality.
Why the case could set a national precedent
The case is being watched as a test of the reach of “same job, same pay” laws. It could fail if the FWC rules that contractors are providing a service rather than labor, a key exemption increasingly debated across industries.
The dispute coincides with a surge in “same job, same pay” orders under the Closing Loopholes reforms. Recent rulings have raised wages by 25–60% across sectors, benefiting over 7,600 workers. Qantas, for example, expects an additional $60 million in labor costs this fiscal year.
The next FWC hearing is scheduled for mid-February 2026, with the outcome likely to influence labor hire and outsourcing practices across both public and private sectors.
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Gunningham, R. (2024, October 30). “Same Job Same Pay” orders are increasing costs for employers. Batch Mewing Lawyers. Retrieved from https://batchmewing.com.au/blog/same-job-same-pay-orders-increasing-costs/
Macayan, D. (2025, December 10). ATO ‘same job, same pay’ case puts Australia outsourcing model at risk. Outsource Accelerator. Retrieved from https://news.outsourceaccelerator.com/ato-same-job-same-pay/
