KPMG barred from new Commonwealth contracts as govt commences review
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More news: KPMG has been barred from bidding for any government contracts until 30 September 2026.
The Department of Finance said in an announcement it would commission an independent review of KPMG’s governance, culture, ethics and integrity frameworks.
During the course of the review, KPMG has agreed to temporarily cease new contract engagements with Australian government entities until 30 September.
However, it does not apply to:
- Existing contracts with KPMG, including the exercise of extension options within those contracts;
- The ongoing licensing or sale of KPMG proprietary products currently in use by Australian Government entities; and
- Proposals submitted by KPMG prior to the date of the mutual agreement to pause (16 June 2026).
“However, entities should continue to be mindful of the requirements to consider relevant experience and performance history, including ethical performance, when assessing value for money in all procurements, and the need to monitor the ethical behaviour of suppliers throughout the term of any contract,” the Department of Finance said.
It noted government agencies with existing KPMG contracts should seek assurance that no individuals engaged on existing contracts are associated with matters being reviewed. They should also consider if any individuals are linked to the matters and if additional risk mitigation steps may be required; and note there are contractual rights to request the removal of specific personnel from contracts.
Lendlease ditches KPMG as its auditor
The news: Lendlease has announced it will dump KPMG as its auditor for the group, following the consultancy’s whistleblower scandal.
The context: In an announcement to the ASX, Lendlease said the board had resolved to change its auditor after the conclusion of reporting for the 2026 financial year end.
The company said it is targeting a transition through FY27 to enable the incoming firm to audit the group from the 2028 financial year.
A whistleblower claimed that KPMG improperly accessed data from Lendlease to help win work for audit tenders at Westpac and Dexus.
The Australian Securities and Investments Commission has commenced a formal investigation into KPMG and Chartered Accountants Australia and New Zealand announced it was reviewing the firm over its handling of confidential information.
The sources: ASX, Department of Finance
