Review finds KPMG Australia mishandled whistleblower claims, pause on government work extended

A review of KPMG Australia's handling of whistleblower allegations has found the firm mishandled the complaints, mishandled its governance and culture for years, but did not recommend a permanent ban on federal government work. The Department of Finance commissioned the review by former bureaucrat Ian Watt, who found KPMG should not be treated as permanently unsuitable for Commonwealth work, but still agreed the firm should not be allowed to bid for new federal contracts until February next year while it undertakes further governance reforms.

The review considered that KPMG should not restore confidence based on assurances alone, and that early signs of reform were not enough. KPMG mishandled the whistleblower complaint, treating it as an employment matter and focusing more on legal implications and organisational risks than verifying the allegations. This damaged the whistleblower's confidence in KPMG, as well as client and public trust in the firm.

KPMG's mishandling of the complaint also highlighted broader cultural and governance issues the firm had been grappling with for years, including a focus on financial returns over ethics, reluctance to challenge senior personnel, and barriers to reporting misconduct. Despite these issues, KPMG's federal government work made up 9.5% of its revenue in the 2026 financial year.