By Lewis Jackson

SYDNEY PwC Australia said on Thursday that dozens of staff who had been set to move across to spin-off consultancy Scyne Advisory will no longer have roles at the new firm and have been told to look for jobs internally.

PwC Australia sold its government advisory business, responsible for a fifth of revenues, to private equity group Allegro Funds for a nominal A$1 in August after government agencies cut ties over a national scandal involving leaked tax plans.

Over 1,500 people out of PwC Australia's more than 9,000 staff were expected to move to the new firm, PwC said in September.

PwC, one of the world's "big four" consultancy and auditing firms, said on Thursday, however, that 78 of those staff will not have roles at Scyne because a number of PwC partners had opted not to transfer.

The 78 have been offered paid leave and encouraged to look at the internal jobs board, the firm said in a statement.

"PwC will do everything in its power to help support these individuals," CEO Kevin Burrowes said in a statement.

A Scyne Advisory spokesperson said a delay in closing the deal, originally planned for September, changes to its "partner mix" and the need to establish Scyne as a "sustainable business" were factors in the decision.

The move comes as Scyne Advisory gears up to reclaim advisory work that netted PwC Australia A$680 million ($427 million) last financial year.

The Department of Finance, which sets procurement rules, this month gave Scyne the all clear to resume work with the government and said no staff involved in the tax leaks scandal had transferred to the firm.

($1 = 1.5929 Australian dollars)

(Reporting by Lewis Jackson; Editing by Lincoln Feast and Edwina Gibbs)