PwC Australia partner Chris Matthews to join KPMG’s customer and operations service group

A PwC Australia national leaders and partner has jumped ship, in one of the first high-profile defections from the embattled firm since its tax scandal.

PwC Australia’s national education and skills leader Chris Matthews will join KPMG as a partner, in one of the most high profile defections from the embattled firm since the fallout from the firm’s tax scandal.

Internal KPMG communications seen by The Australian shows that Chris Matthews will join the KPMG partnership based in Melbourne when he starts in its customer and operations service division on February 1.

Mr Matthews has been at PwC Australia for two decades, including seven years as a partner, and also serves as its joint global head of education. He is one of the first senior partners at PwC to have “retired” and join a competitor in the wake of its tax scandal.

Chris Matthews will move to KPMG in February.

It is understood that Mr Matthews had been earmarked to join Scyne Advisory as part of PwC’s effective forced sale of the arm in the wake of revelations that confidential tax briefings with the ATO were shared.

More than 1200 of the 1550 staff at PwC Australia’s government consulting business have agreed to move to the firm’s spin-out, which was sold for $1 in July. Industry chatter is ripe that more partners could defect from PwC Australia in the months ahead.

KPMG’s customer and operations service group works with educational institutions across the country and offers services that simplify their operations and reduce costs.

KPMG national managing partner, consulting, Paul Howes said in an internal memo that the large-scale projects undertaken by the division align with Mr Matthews’ background of implementing new technologies within education institutions.

KPMG’s Paul Howes said Chris Matthews will motivate the firm’s staff. Picture: Adam Yip

“The industry knowledge, relationships, and experience that Chris brings to our firm will enhance our engagements with existing and prospective clients, benefit our performance culture, and help drive sustainable growth,” Mr Howes said in the memo.

“Working alongside Chris will motivate our people – many of whom have connections to Australia’s top schools and universities – to recognise the social and economic value our work delivers.”

The defection by Mr Matthews comes after PwC Australia announced in September that partners face an income reduction of up to 30 per cent this fiscal year, as it warned of “ongoing reputational challenges”.

PwC has faced months of criticism after it was revealed confidential tax briefings were shared with many members of the firm by its former head of international tax, Peter Collins. PwC used these briefings to sell strategies to clients to attempt to minimise their tax. A Senate inquiry found PwC engaged in “a calculated breach of trust” and “deliberate strategy over many years to cover up the breach of confidentiality and the plan by PwC personnel to monetise it”.

Originally published as PwC Australia partner Chris Matthews to join KPMG’s customer and operations service group