Key facts
- KPMG Australia suspended from new federal government work until September 30 due to client data misuse allegations.
- KPMG's CEO and top auditor resigned following the scandal.
- New contracts for Big Four firms with the Australian federal government fell by nearly half to A$348 million in 2025.
- PwC faced similar consequences after a 2023 scandal involving confidential tax policy details.
- Parliamentary inquiries have recommended regulatory changes for accounting firms, including capping partner numbers and banning dual audit/consultancy services.
KPMG Australia has been barred from bidding on new federal government contracts until September 30 due to allegations of misusing confidential client information. This suspension follows a similar scandal at PwC three years ago and is expected to further impact the revenue of the Big Four accounting firms in Australia.
The firm is accused of sharing confidential company information with prospective private-sector clients to secure auditing work. The scandal has led to the resignation of KPMG's CEO and top auditor after the firm admitted to mishandling a whistleblower complaint. The Reserve Bank of Australia has also indicated it may not renew its contracts with KPMG.
Government tenders show that new contracts for the Big Four firms with the Australian federal government have already fallen significantly, from A$637 million in the prior year to A$348 million in 2025. This trend underscores the government's readiness to distance itself from these firms, potentially threatening their financial health.
Past scandals, like PwC's confidential tax policy leak, have resulted in significant revenue drops and the sale of government advisory businesses. Parliamentary inquiries have recommended regulatory changes, including capping partner numbers and banning dual audit and consultancy services, to improve accountability and prevent conflicts of interest. However, these recommendations have yet to be implemented.
Calls for stricter regulation and even the breakup of the Big Four partnerships are growing, with concerns raised about their social license and treatment of whistleblowers. Government departments are reportedly reviewing their existing contracts with KPMG.