A former West Coast Eagles player turned businessman, Andrew Donnelly, and his wife Natasha are being sued by the Australian Taxation Office for almost $5 million over alleged unpaid wages, superannuation and tax payments linked to their failed businesses.
The ATO filed separate writs in the Supreme Court of Western Australia against the Cottesloe couple last week, claiming they owe director penalties accumulated between 2020 and 2026. The tax office is seeking $2.8 million from Andrew Donnelly in relation to six companies, while Natasha Donnelly allegedly owes $1.8 million linked to 10 businesses, including patio and shed business Profounder Factory Direct and childcare recruiter Flexicare Group. Interest and legal costs are also being sought.
The Donnellys still live in their two-storey Cottesloe family home, a five-minute walk from the beach, which Andrew bought in 2001 for $985,000 but is now worth more than $5 million.
Company documents show liquidators managing several of their collapsed businesses have struggled to contact the pair and have had to file reports to creditors with missing financial records.
Profounder Factory Direct, which owed an estimated $1.2 million to 29 creditors, was placed into liquidation by the WA Supreme Court in March last year, with Stephen Michell appointed liquidator. In a June 2025 report to creditors, Michell alleged sole director Andrew had disclosed in a financial report that the business was sold in June 2021 for $250,000. The liquidator said a creditor told him the business was sold to an "associated entity", but Andrew had been "uncooperative" when asked for more information.
Michell told creditors he was investigating insolvent trading, uncommercial transactions and unfair preference payments. "My review of the company's books and records revealed that the company may have traded whilst insolvent for some time," he said in the report.
Flexicare Group was wound up in April 2025, also owing $1.2 million to creditors. Andrew blamed Flexicare Group's failure on "incompetent staff", according to a liquidator's report by Robert Woods. However, Woods said he suspected the business failed due to "poor financial control including lack of records, poor strategic management of the business and inadequate cash flow or high cash use".
The liquidator said the company had disclosed no money owing to employees, but his investigation found outstanding entitlements of more than $35,000. He told creditors he was preparing a report for the Australian Securities and Investments Commission outlining potential breaches by the directors, including a possible failure to keep financial records for seven years from May 2018.
Analysis
Why This Matters
- The case involves a former professional athlete and his wife facing significant public legal action over alleged unpaid wages and tax, which could affect their personal assets including a family home valued at over $5 million.
- It highlights the consequences for directors of companies that may have traded while insolvent, with liquidators investigating potential breaches and reporting to ASIC.
- The alleged unpaid entitlements of employees, including more than $35,000 for Flexicare Group, underscore the impact on workers when businesses fail.
Background
Andrew Donnelly is a former West Coast Eagles AFL player who has since pursued business ventures. The ATO's claim for director penalties arises from alleged failures to meet tax and superannuation obligations for multiple companies over several years. Liquidators have been appointed for at least two of his businesses, Profounder Factory Direct and Flexicare Group, which owed a combined $2.4 million to creditors.
Key Perspectives
Andrew Donnelly (via liquidator Michell's report): The liquidator alleged Andrew had been "uncooperative" when asked for more information about the sale of Profounder Factory Direct to an "associated entity".
Andrew Donnelly (via liquidator Woods' report): Andrew blamed Flexicare Group's failure on "incompetent staff".
Liquidator Stephen Michell: In a report, he said that "the company may have traded whilst insolvent for some time".
Liquidator Robert Woods: He suspected Flexicare Group failed due to "poor financial control including lack of records, poor strategic management of the business and inadequate cash flow or high cash use".
What to Watch
- The outcome of the ATO's writs in the WA Supreme Court, including whether the Donnellys contest the claim or negotiate a settlement.
- Any reports from liquidators to ASIC regarding potential breaches of director duties, which could lead to further legal action.
- Whether the Donnellys' family home is at risk if the tax debt remains unpaid.
Checked
12 claims in this story checked against 1 source: 12 supported.
Show each claim
- SupportedAndrew Donnelly is a former West Coast Eagles player turned businessman, and he and his wife Natasha are being sued by the ATO over alleged unpaid wages, superannuation and tax payments linked to failed businesses.The Age - Latest News: “A former West Coast Eagles player-turned-businessman and his wife are being sued by the tax office for almost $5 million over alleged unpaid wages, super and tax payments linked to their failed web of businesses.”
- SupportedThe ATO is seeking almost $5 million in total.The Age - Latest News: “A former West Coast Eagles player-turned-businessman and his wife are being sued by the tax office for almost $5 million”
- SupportedThe ATO filed separate writs in the Supreme Court of Western Australia against the Cottesloe couple last week, claiming director penalties accumulated between 2020 and 2026.The Age - Latest News: “The Australian Taxation Office filed separate writs in the Supreme Court of Western Australia against Cottesloe couple Andrew and Natasha Donnelly last week, claiming the pair owe director penalties accumulated between 2020 and 2026.”
- SupportedThe ATO is seeking $2.8 million from Andrew Donnelly in relation to six companies and $1.8 million from Natasha Donnelly linked to 10 businesses.The Age - Latest News: “The writs show the tax office is seeking $2.8 million from Andrew in relation to six companies, while Natasha allegedly owes $1.8 million, linked to 10 businesses.”
- SupportedThe businesses linked to Natasha's alleged penalties include Profounder Factory Direct and Flexicare Group.The Age - Latest News: “These include patio and shed business Profounder Factory Direct and childcare recruiter Flexicare Group.”
- SupportedThe ATO is also seeking interest and legal costs.The Age - Latest News: “The tax office is also seeking interest and legal costs.”
- SupportedThe Donnellys still live in their two-storey Cottesloe family home, which Andrew bought in 2001 for $985,000 and which is now worth more than $5 million.The Age - Latest News: “The pair still live in their two-storey Cottesloe family home, a five-minute walk from the beach, which Andrew bought in 2001 for $985,000 but is now worth more than $5 million.”
- SupportedLiquidators managing several collapsed businesses struggled to contact the Donnellys and filed creditor reports with missing financial records.The Age - Latest News: “Company documents show liquidators managing several of their collapsed businesses have struggled to contact the pair and have had to file reports to creditors with missing financial records.”
- SupportedProfounder Factory Direct owed an estimated $1.2 million to 29 creditors and was placed into liquidation by the WA Supreme Court in March last year, with Stephen Michell appointed liquidator.The Age - Latest News: “Profounder Factory Direct, which owed an estimated $1.2 million to 29 creditors, was placed into liquidation by the WA Supreme Court in March last year, with Stephen Michell appointed liquidator.”
- SupportedIn a June 2025 report, Michell said Andrew had disclosed that Profounder Factory Direct was sold in June 2021 for $250,000; a creditor told him it was sold to an associated entity, and Michell described Andrew as uncooperative when asked for more information.The Age - Latest News: “In a June 2025 report to creditors, Michell alleged sole director Andrew had disclosed in a financial report that the business was sold in June 2021 for $250,000. ... a creditor told him the business was sold to an “associated entity”, but Andrew had been “uncooperative””
- SupportedMichell told creditors he was investigating insolvent trading, uncommercial transactions and unfair preference payments, and said the company may have traded while insolvent for some time.The Age - Latest News: “Michell told creditors he was investigating insolvent trading, uncommercial transactions and unfair preference payments. “My review of the company’s books and records revealed that the company may have traded whilst insolvent for some time,” he said in the report.”
- SupportedFlexicare Group was wound up in April 2025 owing $1.2 million to creditors; Andrew blamed its failure on “incompetent staff,” while liquidator Robert Woods suspected poor financial control and other management and cash-flow problems.The Age - Latest News: “Flexicare Group was wound up in April 2025, also owing $1.2 million to creditors. Andrew blamed Flexicare Group’s failure on “incompetent staff”, according to a liquidator’s report by Robert Woods. But, in his report, Woods said he suspected the business failed due to “poor financial control including lack of records, poor strategic management of the business and inadequate cash flow or high cash use”.”