Business · Companies · 2 hrs ago
Australia extends KPMG’s ban on bidding for government work
Australia has extended its ban on KPMG bidding for federal government work until at least February 28, 2027.
The decision followed an independent review commissioned by the Department of Finance into the accounting firm.
The review found serious ethical failings in how some senior members handled a whistleblower’s complaint about alleged misuse of client data.
It also raised concerns about KPMG’s culture, including how earlier warnings about ethics and accountability were handled.
KPMG must submit a plan and quarterly progress reports while the ban remains in place.
The government will also check that the firm cooperates with reviews by Australia’s corporate regulator and tax practitioners’ board.
KPMG’s leaders accepted the findings and recommendations, and said the firm needs to show lasting change before it can regain confidence.
The review also recommended stronger rules and sanctions for government suppliers, while several Australian states and territories are considering their own responses.
Australia has extended KPMG’s pause on bidding for federal government work until February 28, 2027, after an independent review found serious ethical and cultural failings.
The review found that KPMG mishandled a whistleblower’s allegations about the misuse of client data and that governance weaknesses had persisted for years.
KPMG must provide an implementation plan and quarterly progress reports while it undertakes further reforms.
The review did not recommend permanently barring KPMG from Commonwealth work, but said confidence must be supported by evidence of lasting change.
- Who
- KPMG Australia, the Australian federal government and former bureaucrat Ian Watt, who conducted the review.
- What
- The government extended KPMG’s pause on bidding for new federal work until February 28, 2027, after a review found ethical and governance failings.
- When
- The extension was announced on October 22, 2026. The pause runs until February 28, 2027.
- Where
- Australia, in relation to Commonwealth government work.
- Why
- A review found KPMG mishandled a whistleblower’s complaint about alleged misuse of client data and identified wider cultural and governance weaknesses.
Australian Department of Finance and review
Greens finance and public service spokesperson Barbara Pocock
Extension and reform
Australian Department of Finance and review
The pause on new bids was extended until February 28, 2027, while KPMG undertakes reforms and reports on progress.
Greens finance and public service spokesperson Barbara Pocock
The extension is too small to address the issue, and the government should not consider allowing KPMG back into government work.
Government procurement standards
Australian Department of Finance and review
The review recommended that KPMG should not bid again until reforms are independently verified as changing behaviour in practice.
Greens finance and public service spokesperson Barbara Pocock
The government should set a standard for probity among its contractors.
The scandal became public, and KPMG later replaced its CEO, chairman and audit chief.
Ian Watt’s review was handed down and the Department of Finance announced an extension of the pause on new bids.
KPMG’s pause on bidding for new federal work is due to continue until this date.
- Pause ends
- February 28, 2027
- Review commissioned by
- Australian Department of Finance
- Reviewer
- Ian Watt, former bureaucrat
- Federal work revenue
- A$207.1 million, or 9.5% of KPMG’s revenue in the 2026 financial year
- Required reporting
- An implementation plan and quarterly progress reports
3 sources
What people are saying
Trust, however, is not restored through assurances alone.
Virtually all of KPMG's staff had no involvement in the events that occurred.
The report lays bare our failings and highlights the hard work that we must do to address them
It should instead be setting the standard on probity amongst its contractors.