PHOTO: REUTERS

• KPMG Australia mishandled whistleblower claims about client data leaks. The review said its response was “misguided, fragmented, prolonged” and hurt trust.
• The report found long-running culture and governance weaknesses, including pressure for financial returns and weak challenge to senior staff. KPMG had not properly fixed these problems since 2020.
• The government will keep KPMG barred from new federal work until February 2027 while reforms continue. Federal work was A$207.1 million, or 9.5% of KPMG’s 2026 revenue.

SYDNEY – A probe into KPMG Australia has found it mishandled whistleblower allegations of client data leaks and let cultural and governance weaknesses persist for years, but stopped short of recommending a permanent ban on the firm from federal government work.

The Department of Finance, which commissioned the review by former bureaucrat Ian Watt, said KPMG has instead agreed not to bid for new federal work until February 2027 while the firm undertakes further governance reforms, extending a pause in place since June.

“The review considers that KPMG should not be treated as permanently unsuitable for Commonwealth work, but nor should confidence be restored on the strength of assurances and encouraging early signs alone,” it said.

The review was launched to probe KPMG’s governance, culture and ethics following a whistleblower’s allegations that staff misused confidential information to bid for new audit contracts.

“KPMG mishandled the...

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