A union boasting some 110,000 members urges the government to scrutinise possible exploitation of tax loopholes by a troubled private healthcare giant.

The Health Services Union has written to Treasurer Jim Chalmers and Health Minister Mark Butler arguing Healthscope is misusing salary packaging arrangements designed for not-for-profits.

The scandal-plagued, second biggest Australian private hospital operator, formerly backed by private equity behemoth Brookfield, went into receivership in May for its financial debts totalling about $1.6 billion.

But the organisation is under fire for restructuring into a charity to stay afloat, allowing it to access tax exemptions for fringe benefits provided to employees.

"Healthscope wants workers to hand over 90 per cent of their salary packaging

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