PwC Australia is to sell the part of its business that works with the country’s government for A$1 (€0.60) after a scandal surrounding the leaking of confidential tax plans.

It has also announced the appointment of a new CEO, in moves PwC described as “the latest in a series of actions taken by the firm to enhance its governance, culture and accountability”.

The professional-services firm’s federal and state government business will be sold to Allegro Funds, in a transaction that will create two independent firms.

PwC says that the deal ensures that there will be no disruption in vital services to public-sector clients.

Stability

The exit from Australian government business will hit PwC’s future size and operations, as it accounted for almost one-fifth of its 2023 revenue.

“It allows the firm to move forward with predictability and focus, and ensure stability for the rest of PwC’s clients in other parts of the business,” a statement said.

The new CEO is Kevin Burrowes, who currently works for PwC in Singapore.

Earlier this year, it emerged that a former PwC Australia partner, who was advising the Australian government, had shared drafts of proposed laws on tax avoidance with colleagues.

The leaks occurred between 2014 and 2017.