PwC Shifts Focus Beyond Profit After Tax Scandal

PwC Australia is making major changes to how it assesses partner performance, moving beyond revenue targets to include cultural and ethical considerations. This shift follows a damaging tax leaks scandal that exposed the firm’s aggressive focus on growth, prompting a complete structural overhaul to rebuild trust and accountability.

The scandal stemmed from a former partner sharing confidential government tax information, which PwC then used to advise clients on avoiding new tax laws. The fallout in 2023 led to a public and political backlash, a significant drop in profit, and mass departures of partners and staff, prompting PwC’s global leadership to step in and take control of the Australian business.

As part of the reforms, PwC Australia has introduced a new performance framework, assessing partners on broader measures like leadership behaviours, client experience, and the firm's reputation. A board with independent members now holds the CEO accountable, and leadership appointments follow a stricter merit-based process. Despite these changes, the firm remains exempt from corporate governance laws due to its partnership structure.

While PwC aims to balance financial performance with ethical leadership, skepticism remains among former partners about whether real cultural change is taking place. Many believe financial targets will still dominate decision-making. However, PwC insists that its new “balanced scorecard” approach will ensure sustainable, long-term success in the consulting industry.

Source: Australian Financial Review