KPMG Australia will stop bidding for new federal government work for three months after reaching an agreement with the Department of Finance following whistleblower claims that the company mishandled confidential client information.
The Department of Finance said KPMG had agreed to halt new contract engagements with Australian Government entities covered by the Commonwealth Procurement Rules until 30 September 2026.
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As part of the process, the Department of Finance will commission an independent review into KPMG’s governance, culture, ethics and integrity frameworks. Further information on the review is expected to be released later.
Under the arrangement, Commonwealth officials are not to enter into contracts with KPMG for procurement processes closing between 16 June and 30 September 2026.
The restriction covers new engagements, including those under whole-of-Australian-Government panel arrangements, as well as new contracts awarded to third parties where KPMG would act as a subcontractor.
Entities not covered by the Commonwealth Procurement Rules have also been advised to take a similar approach and avoid entering into new engagements with KPMG during the same period.
The agreement does not affect current contracts with KPMG. Existing arrangements, including contract extension options and the continued licensing or sale of KPMG proprietary products already being used by Australian Government entities, will remain in place. It also does not apply to proposals KPMG submitted before the pause took effect on 16 June 2026.
KPMG Australia interim CEO Stan Stavros said: “We will fully cooperate with the Department of Finance review of KPMG Australia.
“We will continue engaging with each State and Territory under the relevant supplier codes and keep them informed of our remediation progress.
“Our commitment is to learn from what has occurred, act with humility and urgency, continue to deliver quality outcomes for our clients, and demonstrate through our actions – not just our words – that we are worthy of the confidence placed in us.”
