Australia Bars KPMG From New Federal Work Until Sept. 30 as Big Four Contracts Halve
Updated
Updated · Reuters · Jun 16
Australia Bars KPMG From New Federal Work Until Sept. 30 as Big Four Contracts Halve
3 articles · Updated · Reuters · Jun 16
Summary
KPMG cannot bid for new Australian federal contracts until Sept. 30, a fresh blow as the firm already holds about A$650 million in active government work.
The ban follows allegations KPMG shared confidential company information with prospective private-sector clients to win audit mandates, a scandal that has already forced out its CEO and top auditor.
Reuters data show new federal contracts awarded to KPMG, PwC, Deloitte and EY fell to A$348 million in 2025 from A$637 million a year earlier, extending a slide that began after PwC's 2023 leak scandal.
Departments are reviewing existing KPMG contracts, lawmakers said, while the Reserve Bank of Australia signaled it would likely not reappoint the firm to run its whistleblower hotline.
The episode is intensifying pressure for tougher regulation of the Big Four, with past parliamentary recommendations still unimplemented and some lawmakers now calling for a broader market shake-up.
As scandals escalate, will regulators finally force the break-up of the Big Four's audit and consulting arms?
With whistleblowers left legally unprotected, what other major scandals inside the Big Four have yet to be exposed?
If Big Four audits are compromised, why are they still the gold standard for companies seeking financial trust?
KPMG Scandal Sparks $289 Million Drop in Big Four Government Contracts and Demands for Whistleblower Reform
Overview
KPMG Australia is facing major consequences after repeatedly failing to notify officials about serious allegations of client data misuse, leading to a possible ban from federal government contracts. The Department of Finance is now managing the government’s response and has launched an independent review of KPMG’s ethics and governance. The crisis began when a whistleblower’s concerns about confidentiality breaches were mishandled internally, eventually becoming public and prompting the resignation of KPMG’s CEO and audit partner. This scandal has triggered a sharp drop in new government contracts for all Big Four firms and is driving a broader re-evaluation of how the government works with major consultants.