KPMG Australia Mishandled Whistleblower Claims, Review Finds; Federal Bid Pause Extended to February

SYDNEY — An independent review found KPMG Australia mishandled whistleblower allegations of client data leaks and allowed cultural and governance weaknesses to persist for years, the Department of Finance said. The firm has agreed not to bid for new federal government work until February, extending a pause in place since June. The review, led by former bureaucrat Ian Watt, stopped short of recommending a permanent ban, saying KPMG "should not be treated as permanently unsuitable for Commonwealth work" but that confidence should not be restored on assurances alone. It found the firm treated the complaint primarily as an "employment matter," focusing on legal and organizational risk rather than whether the allegations were accurate. Federal work accounted for A$207.1 million, or 9.5%, of KPMG's revenue in the 2026 financial year. Since the scandal became public in March, KPMG has lost major clients and replaced its CEO, chairman and audit chief. KPMG did not immediately respond to a request for comment.