Barbara Pocock (SA, Australian Greens) Share this | Link to this | Hansard source

My question is to the Minister for Finance. On 16 November, the Tax Practitioners Board ruled that the former PwC partner Peter Collins leaked confidential government tax plans and sold advice to clients to help them sidestep multinational tax avoidance laws. Since then PwC has been awarded more than $77 million in new government contracts. All you and the government have done today is speak of reputational damage as the penalty for PwC and seek assurances from PwC that they won't do it again. Will the government immediately cease and ban all contracts with PwC?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I thank Senator Pocock for the question. On the issue, I think we have all been deeply shocked by the information that has been uncovered through that inquiry. Certainly, from my point of view, I'm deeply disappointed that processes that are put in place so that we can engage in reasonable and open discussion, confidentially, about how certain legislation is drafted and its potential impact—where we work with stakeholders not just through places like PwC but more broadly—have been compromised in this way. I've read all the emails that have been provided at Senator O'Neill's request, which have gone through to the committee, and I think they reflect very poorly indeed on PwC.

I know that the Treasurer has asked his secretary to provide advice to the government on what further steps are needed to respond to these matters, beyond the recommendations of the Tax Practitioners Board, and I have also asked my department some time ago to look at what can be done in the procurement framework and in contract management processes not only to ensure the integrity of suppliers but also to act as a very significant deterrent to this kind of behaviour occurring again. I haven't received that advice yet—we've been finalising the budget—but I expect that I will get it reasonably soon, and I'm happy to update you as I get it. My understanding is that the government doesn't directly engage through the departments and their contractual arrangements and that stopping those contractual arrangements where they exist is not an option available to— (Time expired)

Sue Lines (President) Share this | Link to this | Hansard source

Senator Pocock, first supplementary?

Barbara Pocock (SA, Australian Greens) Share this | Link to this | Hansard source

Taxpayers are looking for more than discussion and advice. The ATO estimated that up to $180 million in tax revenue could have been at risk from the PwC breach. Why is this matter not being investigated by the Australian Federal Police under the Crimes Act, and will the government sue PwC to recover any lost revenue?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

In response to the assertion that the Australian people deserve more than discussion and advice: it is not unusual for the government, before taking whatever future steps—if they are available to us, whether through Treasury or through Finance—to take advice on that before making a decision. So I don't think that's unusual. What I am saying to you is that the government is extremely concerned about what has been uncovered through the Tax Practitioners Board's inquiry. We are aware of the material, we have looked at it and we are taking further advice on what further can be done to deal with it. I think that's what people would respect from a responsible government. Those are the steps that the Treasurer and I have put in place. That is what we'll follow and, when we get that advice back, we will make further decisions.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Pocock, second supplementary?

Barbara Pocock (SA, Australian Greens) Share this | Link to this | Hansard source

Thank you for that answer. PwC monetised confidential government information to earn $2.5 million in fees from 14 clients to help them sidestep new multinational tax avoidance laws. In this clear case of systemic corruption and cover-up, which everyone in this place must find abhorrent, will you work with this parliament and support the Greens' referral of this matter to the National Anti-Corruption Commission?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

As senators know, anyone can make a referral to the National Anti-Corruption Commission. The commission makes its own decisions about what matters it will investigate. I can say that the government is appalled by the behaviour of PwC in this situation. It has compromised our ability to work with third parties around developing up policy and legislation. The Treasurer and I have taken the matter very seriously, and we are currently looking at what further steps are available in my area, around the procurement framework, around panels, around future work, around all of those things, to make sure that not only are we putting in place tighter processes for those that are awarded contracts but that we have a very significant deterrent to this kind of behaviour occurring again.