KPMG Australia to Stop Bidding on New Federal Contracts Until September 2026 but Keeps Existing Work
The firm will stop bidding for Commonwealth work while Finance commissions an independent review of its governance and integrity systems. It currently holds 297 active federal contracts worth $653 million.
The Sydney Morning HeraldKPMG Australia has agreed not to bid for any new Commonwealth work until 30 September 2026. A Department of Finance spokesperson said the firm will temporarily cease new contract engagements with Australian government entities subject to the Commonwealth Procurement Rules between 16 June and 30 September 2026. Non-CPR covered entities have been recommended to adopt a consistent approach.
During the same period, Finance will commission an independent review of KPMG’s governance, culture, ethics and integrity frameworks. The review’s findings are expected to be shared with state governments, which are also reassessing their relationships with the firm.
Last month, Finance Department officials told KPMG Australia it could be banned from bidding for contracts after the firm repeatedly failed to notify officials about allegations of client data misuse.
The partial ban follows a whistleblower scandal that first came to light in March when Labor senator Deborah O’Neill detailed the allegations in a Senate speech. Greens senator Barbara Pocock revealed last week that KPMG currently holds 297 active federal government contracts worth $653 million.
She called for a review of all current contracts and a ban on future work until the allegations are properly investigated.
Some of the allegations were substantiated last month. The revelations prompted the resignations of CEO Andrew Yates and audit boss Julian McPherson. KPMG said its initial internal investigation did not substantiate the whistleblower’s claims and had not been conducted with the necessary rigour.
Just weeks earlier, the firm refused to give the complainant whistleblower protections and stated that based on the evidence identified to date, the allegations had not been substantiated. This Friday, a parliamentary joint committee chaired by O’Neill will publicly examine how some of Australia’s largest corporate names and regulators remained unaware of the scandal for two years.
