Zaneta Mascarenhas (Swan, Australian Labor Party) Share this | Hansard source

by leave—I take the opportunity to speak on the tabling of the report of the Parliamentary Joint Committee on Corporations and Financial Services, of which I'm a member. This report follows the inquiry into ethics and professional accountability: structural challenges in the audit, assurance and consultancy industry. This inquiry is a statement to the strength of our democracy. It shows that parliament has a critical role to play in holding our institutions accountable. It proves that our democratic systems are alive and well. And I agree with the member for Mitchell, the deputy chair, that this has been an incredibly collegiate committee. I commend the chair of the committee, Senator Deb O'Neill, for her leadership and commitment to this important work, as well as all committee members: the deputy chair; the members for Fraser, Adelaide and Petrie; and Senators Pratt, Pocock, Bragg and Scarr. Their dedication ensured that this inquiry was thorough and impactful. I also extend my appreciation to the witnesses who contributed. Their insights, expertise and lived experience guided the committee. Without their courage and willingness to speak, this report would not have been possible.

The inquiry began in 2023, prompted by serious revelations. Misconduct in the audit, insurance and consultancy sector came to light. At the heart of this scandal was the PwC tax leak scandal, which exposed unethical practices and breaches of trust. This inquiry was vital. People needed to be held accountable. Today we table a report that uncovers the full extent of the misconduct. It shows how confidential government information was misused by partners and employees of PwC.

The report makes 40 recommendations. First, it proposes a cap of 400 partners for firms structured as partnerships. This is a reduction from the current 1,000 and aligns these firms with the limits already in place for law firms. I support the position, and the recommendation is sensible and is needed. Second, the report calls for an operational separation of audit functions in multidisciplinary professional service firms. Audit clients should not be able to access other firms from the same firm. This will reduce conflicts of interest and improve trust in the audit process. Third, the report recommends the introduction of accountability measures for consultants. This includes a public register of consultants, a consultancy code of conduct and a compliance body to oversee the sector.

Importantly, the committee recommends that PwC should not be allowed to tender for government contracts until all legal investigations are complete. This sends a clear message: unethical behaviour will not be tolerated. It will also be an important measure in rebuilding public trust in the institution.

The inquiry also revealed deep failures in governance. Conflicts of interest were widespread. Practices that undermined our national interest went unchecked. If not for this inquiry, many of these issues may never have come to light. This is unacceptable. It must not happen again.

The committee's recommendations are forward thinking and are made in the national interest. Australia deserves a consultancy sector that is ethical, transparent and accountable. Trust in our institutions matters. It underpins our democracy, our economy and our fundamental way of life. When institutions fail, it hurts us all. This report is about rebuilding trust. It's about ensuring these values are not repeated. It's about protecting the stability and integrity of our systems.

Today we take a step forward. We hold those responsible to account. We recommit to the values that make our democracy strong. I commend this report to the House.

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