[2] The TCS was considered one of the major driving forces behind the 1980s "debt-funded boom" in Western Australia (WA)[1] and its collapse, along with the collapse of several other large corporations within WA such as Qintex, Bond Corporation and The Bell Group, triggered an economic recession in the state.
By the 1980s, TCS was already one of Australia's largest credit unions, however they grew rapidly during the economic liberalisation and deregulation of the Australian economy under the Hawke government.
15 [5] Roth Auditors in 1986 also raised concerns about the society's loan lending procedures, and the board members' minimal accounting experience.
15 Following the release of the 1986 annual report in March, the society experienced a run on liquid cash, resulting in an application for an A$18 million loan from the R&I Bank.
[5] In addition the government had placed nine companies into receivership and issued formal demands to over 170 account in an attempt to recover losses.