Briefings Related To Use Of External Collection Agencies And External Service Providers.

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This operational briefing outlines the ATO's use of External Collection Agencies (ECAs) for debt recovery. The ATO employs ECAs as a supplement to internal debt management, handling high-volume, less complex collection activities to recover tax and superannuation debts. ECAs were previously used for over 13 years before being paused in March 2020 during the COVID-19 pandemic and have now been reactivated through competitive procurement. The briefing emphasizes that ECA frontline staff receive no commission or performance payments, debts remain ATO property (not sold to agencies), and all collected funds go directly to taxpayer accounts. The ATO has invested in building expertise among over 100 specialized staff to support taxpayers experiencing hardship through a dedicated support hub. A pre-referral warning letter process precedes ECA referral for non-responsive taxpayers with overdue debts. The document reflects the ATO's stated commitment to supporting vulnerable taxpayers while using ECAs to expand resource capacity for debt collection under its Payment Strategy.