KPMG has been suspended from bidding on new federal government contracts until September 30, 2026, due to its involvement in an audit-leak scandal, the Australian government announced today [1, 2, 3]. The firm allegedly shared confidential company information with prospective private-sector clients to win auditing work. This followed KPMG’s admission of mishandling a whistleblower complaint tied to the alleged misconduct, leading to the resignation of the firm’s CEO and top auditor [1, 2, 3].
The scandal has further strained the prospects of Australia's Big Four accounting firms, which collectively saw new federal government contracts fall sharply. In 2025, the Big Four signed new contracts worth A$348 million, down almost 45% from A$637 million in 2024 [1, 2, 3]. KPMG alone holds about A$650 million in active federal contracts, including anti-slavery supply chain audits and cybersecurity services [1, 2, 3].
The Reserve Bank of Australia also indicated it would likely not renew KPMG’s contract to manage its whistleblower hotline due to concerns stemming from the scandal [1, 2, 3]. Brendan Lyon, a former KPMG partner, said government work forms a "significant portion of Big Four revenue" and that losing hundreds of millions annually threatens their financial health. He added, "It's undoubtedly going to have impacts and that's been discussed by government politicians and various government departments" [1].
The troubles for Australia’s Big Four began in 2023 when PwC faced a similar scandal involving sharing confidential tax policy details to win clients. That scandal cost PwC new government contracts for more than a year and forced the sale of its government advisory business for just A$1. PwC’s revenue fell 26% in the 2024 financial year after the fire sale [1, 2, 3].
In 2025, Deloitte apologized after a government report it prepared included AI-generated fabrications, adding to the sector’s reputational damage [1].
The Australian government’s barring of KPMG from new federal work will last until September 30, 2026, while investigations and reviews continue, marking the latest setback for the Big Four firms’ standing with public sector clients [1, 2, 3].
