KPMG Australia mishandled whistleblower claims, government work pause extended

A review into KPMG Australia has found the firm mishandled whistleblower allegations concerning client data leaks and allowed cultural and governance weaknesses to persist for years. As a result, KPMG has agreed to not bid for new federal government work until February, extending a pause that began in June. The review, commissioned by the Department of Finance, stated that while KPMG should not be permanently banned from federal work, confidence cannot be restored solely on assurances. The report detailed that KPMG's response to the whistleblower was misguided and fragmented, focusing more on employment and legal implications than the accuracy of the allegations. These shortcomings damaged confidence in KPMG's claims, as well as client and public trust. The firm had identified internal issues related to ethical leadership and reporting misconduct by 2020 but had not adequately addressed them. Federal government work constituted 9.5% of KPMG's revenue in the 2026 financial year. Since the scandal emerged in March, KPMG has lost clients and replaced key leaders.