The federal government is prepared to consider further action against consultancy firm PwC over the tax advice scandal once a police investigation is carried out.
Treasurer Jim Chalmers said the conduct of PwC in using classified Treasury advice for commercial gain was a “substantial breach of faith”.
The Treasury department has referred the conduct of PwC to the Australian Federal Police.
However, Dr Chalmers said the government would consider whether other options would be needed following the police work.
“First of all, let’s let the AFP process play out, that’s important. Treasury’s referred it to the AFP, and there are other steps we’re working through,” he told ABC Radio on Monday.
“If more needs to be done, we’re prepared to consider it.”
The comments came as Australian Securities and Investments Commission chair Joe Longo told business leaders the regulator was reviewing its contracts with PwC Australia.
Mr Longo said the process of holding the consultancy firm to account was “only just starting”.
“It’s an important part of our economy and they need to be held accountable for this extraordinary incident,” he told the AFR ESG summit.
“It’s a very serious breach of trust.”
Meanwhile, a parliamentary inquiry into integrity measures taken by consulting services will run on Wednesday, where both Treasury and the Finance department are expected to update their reviews of PwC.
The Institute of Management Consultants believes providers should be certified and subject to their constitution and code of conduct to handle government contracts.
“Unlike other professions, the management consulting profession is not regulated in Australia: anyone who wants to call themselves a management consultant can do so,” the peak body’s submission to the inquiry reads.
“Requirements for individual consultants engaged on assignments for public sector organisations to hold professional standing would assist in managing risk.”
Dr Chalmers indicated PwC held a “substantial” amount of other government contracts.
“What we have done since being made aware of this really appalling behaviour that people have got a right to be absolutely filthy about, is we’ve worked through a decisive and methodical response on cleaning up the Tax Practitioners Board,” he said.
“The Finance Department is strengthening their procurement framework, and we’re asking people to take into consideration this behaviour when they award future contracts.”
The TPB’s submission to the inquiry, which predates the PwC scandal, acknowledges the need to balance client and community obligations.
“Our code articulates the need for tax practitioners to act lawfully in the best interests of the client … tax practitioners who prioritise self-interest, or who act in furtherance of tax crime, are clearly failing their legal, ethical and professional obligations,” it reads.
Also listed to give evidence is consultancy firm KPMG Australia.
Australian Associated Press