Embattled consulting group KPMG has effectively been banned from new federal government work while the Department of Finance reviews its suitability as a contractor.
A Department of Finance spokesperson said KPMG Australia has agreed to its request that the firm not bid for any new Commonwealth work until September 30, 2026. The move follows the consulting giant’s whistleblower scandal, which showed KPMG executives were allegedly accessing and sharing sensitive information for financial gain.
“Between June 16 and September 30, 2026, KPMG will temporarily cease new contract engagements with Australian government entities subject to the Commonwealth Procurement Rules (CPR), with non-CPR covered entities recommended to adopt a consistent approach,” the spokesperson said.
“During this timeframe, Finance will commission an independent review of KPMG’s governance, culture, ethics and integrity frameworks. Further details regarding the review will be made available in due course.”
The review’s findings are expected to be shared with state governments, which are also reassessing their relationships with KPMG.
Last month, during Senate estimates, Finance Department officials said they had told KPMG Australia it could be banned from bidding for contracts after the firm had repeatedly failed to notify officials about wide-ranging allegations of client data misuse.
The partial ban shows KPMG may be heading down the same path as its rival PwC, which was forced to spin off its...
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