Union calls on Katy Gallagher to 'override' PwC decision

Community and Public Sector Union (CPSU) national secretary Melissa Donnelly made the comments after the Department of Finance issued advice last week that it was "appropriate for Australian government entities to consider contracting with PwC Australia as they would any other supplier".

The finding reversed a mutual agreement between the Commonwealth and PwC Australia, detailing that it would not bid for any federal government work, after allegations that the firm's former head of international tax had misused confidential government information for commercial gain.

The agreement had been in place from April 2024 until July 15, 2025, when it expired, with Finance issuing its latest advice last Thursday.

Ms Donnelly has added her voice to condemnation from Greens senator Barbara Pocock and Liberal senator Richard Colbeck.

Alongside their Labor counterpart, Deborah O'Neill, the Senators had argued that the firm should be barred from government work until ongoing investigations by the Tax Practitioners Board, Tax Office, and Australian Federal Police concluded.

"A firm that breached the trust of the Australian people should not be rewarded with access to taxpayer-funded contracts while investigations are still ongoing," Ms Donnelly told The Canberra Times.

"The government should override this decision and immediately reinstate the ban on PwC."

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Ms Donnelly said the firm being allowed to bid for government work "sends entirely the wrong message" about accountability and integrity in government procurement.

"It remains clear that the safest and most responsible place for public sector work to be is in the hands of transparent and accountable public sector workers - not for-profit firms under investigation," she said.

Finance Minister Katy Gallagher has distanced herself from the decision, with her spokesperson calling it a matter for her department.

"Our government has put in the work over the last three years to rebuild the APS and ensure core public service work is being done by public servants," the spokesperson said in a statement.

They pointed to planned savings of $5.3 billion from reductions in outsourced labour, announced during their last terms, with an additional $6.4 billion expected to be saved in the coming years.

The Department of Finance, currently led by acting secretary Richard Windeyer, signed off on PwC after finding it had "implemented and/or revised its policies and [processes] to meet the ethical standards of governance, culture, and accountability".

Despite the decision, the firm will not be able to bid for contracts in the general government sector until November 2028, because of an agreement with its spin-off, Scyne Advisory.

The department found this would allow "time for the outcomes of further investigations to be concluded before PwC Australia commences doing substantial work with the Commonwealth".

But it also noted that "acting in advance of the results of currently active investigations might result in the need to revisit the conclusions".

The Finance report listed "significant change" inside PwC since May 2023 as the grounds for its decision, including changes in key personnel, divestment to Scyne Advisory, implementation of recommendations from its own review, and other improvements to address governance, culture and accountability deficits.

The department also consulted six agencies that had ongoing contracts with PwC - with an approximate value of $11.6 million - which reported no issues with the firm's conduct.

Finance will continue to monitor the firm until June 2027.

PwC Australia chief executive Kevin Burrowes issued a statement last week, welcoming the outcome and acknowledging the firm would continue to "strive to become the pre-eminent professional services firm".