On Friday, 3 May, 2024, the Australian Treasury introduced two public consultations following the PwC tax leaks scandal.
This includes a consultation on the regulation of accounting, auditing and consulting firms in Australia and a consultation on tax regulator information gathering powers.
The deadline for receiving comments on the first consultation is 28 June, 2024, while the deadline for the second consultation is set for 31 May, 2024.
Response to PwC – regulation of accounting, auditing and consulting firms in Australia
Factsheet – Government response to PwC tax leaks scandal
This consultation paper is seeking stakeholder views and feedback on issues for Treasury’s consideration in relation to the regulation of accounting, auditing and consulting firms in Australia. This paper relates to the priority area identified for action in the Government’s PwC response: strengthening regulatory arrangements.
This consultation paper seeks feedback and views on the following issues:
- the adequacy of prescribed governance requirements for large partnerships;
- the adequacy of current professional standards, regulations and laws (including those relating to independence and the management of conflicts of interest);
- whether the transparency requirements for accounting, auditing and consulting firms are sufficient to:
- give capital markets confidence that independent audit services are delivered in accordance with prescribed laws and standards;
- enable stakeholders to obtain the information they need to inform their engagement with the firm(s).
- the adequacy of regulatory enforcement capabilities and standard setting;
- the protection of whistleblowers; and
- competition/resilience in the audit sector.
Response to PwC – tax regulator information gathering powers review
This consultation paper examines:
- whether the Australian Taxation Office’s (ATO) information gathering powers remain fit for purpose and operate to allow the ATO to properly assist the Australian Federal Police to investigate serious criminal offences perpetrated against the tax and superannuation systems;
- the limitations on the Tax Practitioners Board (TPB) using formal information gathering powers prior to commencing a formal investigation.
This consultation paper relates to the priority area identified for action in the government’s PwC response: strengthening regulatory arrangements. The government is seeking stakeholder feedback on preliminary findings and proposals on tax regulator information gathering powers.
