SYDNEY, June 15 (Reuters) – KPMG Australia has agreed it will not bid for any new federal government work for three months, the Department of Finance said on Monday, following whistleblower allegations the accounting firm misused confidential client information.
A department spokesperson said KPMG will not seek any new government work from June 16 to September 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.
(Reporting by Christine Chen in Sydney; Editing by Christopher Cushing and Muralikumar Anantharaman)
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