Scandal-hit KPMG Australia will not bid for new federal work until end-September

Australia’s state and federal agencies said they were reviewing their current contracts with KPMG. (KPMG filepic)

SYDNEY: KPMG Australia has agreed it will not bid for any new federal government work for three months, the finance department said today, following whistleblower allegations the accounting firm misused confidential client information.

A department spokesman said KPMG will not seek any new government work from June 16 to Sept 30, while the firm’s governance, culture, ethics and integrity are being investigated.

The move marks the latest fallout for KPMG in the wake of the scandal.

State and federal agencies have said they are reviewing their current contracts with the firm, while some private sector clients have also cut ties.

Long-time client Lendlease confirmed on Monday it would drop the firm as its auditor.

According to whistleblower allegations made public in March, confidential board papers from the real estate company were used to support bids for major audit tenders for Westpac, a large bank, and property firm Dexus.

KPMG has admitted it mishandled an internal investigation into the claims, triggering the resignation of its CEO and audit chief.

The allegations have brought renewed scrutiny to Australia’s professional services ​sector, which was rocked by revelations in 2023 that PwC shared confidential government information with prospective clients.

PwC did not bid for new government contracts from April 2024 to July 2025 after its scandal.

The firm also sold its government advisory business, which had accounted for a fifth of its revenue, for A$1 in August 2024.

The renamed Scyne Advisory ​was then allowed to bid for new government contracts.