Treasurer says there will be more action against PwC over the scandal

Federal Treasurer Jim Chalmers has hinted the repercussions for consulting giant PwC over the tax scandal could be worse than expected.

Treasurer Jim Chalmers has hinted embattled consultancy giant PwC Australia could miss out on future lucrative government contracts because of the tax contracts scandal.

“Part of the changes that (Finance Minister) Katy Gallagher and her finance department have been talking about is making sure we take character and past behaviour into consideration when we make new contracts,” he said in response to whether Treasury would work with PwC again.

“I think you can read into that what you will,” he told 7.30 on Wednesday.

Treasurer Jim Chalmers says he is ropeable at the actions of PwC. Picture: NCA NewsWire / Martin Ollman

The scandal blew up when it was revealed PwC’s then tax partner Peter John Collins had shared confidential government information about changes to tax laws with other partners, staff and clients that would be affected by them.

Treasury has referred PwC to the Australian Federal Police for a criminal investigation, while PwC has launched an internal investigation led by respected business leader Ziggy Switkowski.

PwC is facing more fallout from the tax scandal. Southbank. Picture: NCA NewsWire / Andrew Henshaw

The fallout has been widespread with PwC’s former Australian chief executive, Tom Seymour, resigning and nine partners – including members of PwC’s executive and governance boards – ordered on leave.

Dr Chalmers said the government had responded to the scandal “in a decisive and methodical way”, including introducing legislation to clean up the Tax Practitioners Board, and the government would consider doing more.

“Ever since I heard about it I have been ropable about it, as have most people who have thought about it,”

“We can’t have a repeat of this absolutely appalling episode where people were monetising government secrets, when governments in good faith were trying to consult with corporate Australia.”

Home Affairs boss Mike Pezzullo told senate estimates earlier this week that he had lost confidence in PwC but would give the company a chance to prove itself under its new leadership.