PwC partners take 30% pay cut to cover government consulting sale

The news: PwC Australia reported it had lifted annual revenue 11% as it revealed measures to soften a reduction in income following the spin-off of the firm's government consulting business.

The numbers: The consulting firm posted revenue of $3.4 billion in the year to June 30, but the $1 sale of its government consulting business is expected to evaporate about a fifth of its gross income in FY24. To avoid job losses, wage cuts and to ease the pressure on revenue, partners will take an income hit of 30% in the current financial year.

The context: In June, PwC agreed to sell its lucrative government consulting business to Allegro Funds after it was revealed PwC partners had shared confidential government tax documents to secure clients and help them avoid paying tax.

What they said: "We completely accept that past leadership failed to meet the standards our people, our clients, the community and the Australian government rightly expect, and for that I apologise," PwC CEO Kevin Burrowes said in a statement.