In January 2023, media reports brought to light that accounting, auditing, and consulting firm PwC and one of its partners, Peter Collins, had been investigated and received sanctions from the Tax Practitioners Board (TPB). From 2013 to 2016, Mr Collins received confidential information from Treasury consultations, and through his engagement with the Board of Taxation, in relation to Australia's forthcoming anti-avoidance tax laws. Despite having signed multiple confidentiality agreements, Mr Collins intentionally shared this confidential information with PwC partners and others both in Australia and overseas — putting at risk $180 million per year of tax to be paid in Australia.

These events were the principal catalyst for the referral of the inquiry into the management and assurance of integrity by consulting services to the Senate Finance and Public Administration References Committee.

This report is structured as follows:

• Chapter 2: examines the Australian government's procurement framework
• Chapter 3: examines the reliance on consultants by the Australian government
• Chapter 4: examines how the Australian Public Service (APS) manages contracts
• Chapter 5: looks at the corporate culture in the 'Big 4' consulting firms
• Chapter 6: examines the regulation of the consulting industry in Australia
• Chapter 7: outlines the Committee's view and recommendations.

Key recommendations:

• The Committee recommends that PwC be open and honest with the Australian Parliament and people, and with the international community, by promptly publishing accurate and detailed information about the involvement of PwC partners and personnel (including names and positions) in the breach of confidential government information.
• The Committee recommends that the Department of Finance update the Contract Management Guide to require that Australian government contracts include a clause that states service providers have a duty to act in the public interest when delivering work for the Australian government.
• The Committee recommends that the transfer of knowledge from the consultant to the Australian Public Service be factored into the design, management and evaluation of contracts.
• The Committee recommends that the Department of Finance develop a central register for conflicts of interest breaches for use by government entities.
• The Committee recommends that the government commissions the Australian Law Reform Commission, or other appropriate body, to undertake a review of the legislative frameworks and structures of partnerships in Australia with particular focus on partnerships in excess of 100 partners. The review should make recommendations to provide for appropriate regulatory governance and oversight of structures of this scale.