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The proposed multi-million dollar penalties are to prevent the state from being caught out by tax leaks.
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NSW considers sanctions for disclosure of government tax information
26 May 2023
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10 minute read
The NSW government is considering implementing penalties for the improper disclosure of confidential government tax information.
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The proposed policy would mean businesses and organisations caught disclosing confidential taxation information could face multi-million dollar penalties.
Minister for Finance Courtney Houssos said it was important for the government to have the power to punish those who leak confidential details.
“The NSW government takes the confidentiality of sensitive taxation information extremely seriously and will not hesitate to come down hard on anyone who breaks trust with or takes unfair advantage of the people of NSW,” said Ms Houssos.
“I am working with the chief commissioner of state revenue to ensure that severe penalties will apply to advisors and organisations who seek commercial advantage by sharing confidential tax related information.”
“We are developing a range of measures that will impose significant penalties for individuals and entities that unlawfully use or disclose sensitive or confidential tax information provided to the government.”
Ms Houssos said the proposed measures and their significant penalties would serve as a “firm warning for organisations and businesses that we expect confidentiality arrangements to be honoured on behalf of the people of NSW.”
The action by the NSW government comes after the secretary to the Treasury, Steven Kennedy revealed Treasury had referred the PwC tax leak matter to the AFP.
“PwC Australia’s former head of international tax, Mr Peter Collins, improperly used confidential Commonwealth information,” said Dr Kennedy.
“The emails that the Tax Practitioner’s Board tabled in parliament on 2 May 2023 highlighted the significant extent of the unauthorised disclosure of confidential Commonwealth information and the wide range of individuals within PwC who were directly and indirectly privy to the confidential information.”
“In light of these recent revelations and the seriousness of this misconduct, the Treasury has referred the matter to the Australian Federal Police to consider commencement of a criminal investigation.”
Minister for Home Affairs Clare O’Neil said the government took the PwC tax leaks extremely seriously and described it as a “grotesque betrayal of trust of the Australian government and our citizens.”
“We’re doing everything we can to make sure that there is proper accountability on behalf of people who have done the wrong thing here,” Ms O’Neil told ABC Radio National.
“We will not stop until we get to the bottom of exactly what has happened here. It is a disgraceful incident, and it must be properly investigated and the people responsible held to account.”
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