Finance Minister Katy Gallagher has distanced herself from her department's move to green-light PricewaterhouseCoopers to bid for federal government contracts despite the firm's tax leaks scandal.

"Ministers are not involved in procurement decisions," Senator Gallagher told the Senate on Thursday.

"It is a matter for the department."

The comments were in response to questioning by Greens senator Barbara Pocock after she introduced a bill that would ban companies found to have engaged in "unethical" conduct from receiving government work for up to five years.

"Labor must urgently fix the legal loopholes to ensure stronger protections from dodgy contractors and this bill is a gift for Labor," Senator Pocock said, before asking Senator Gallagher if she would support the Greens bill.

"Und

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