The Australian chief executive of global accounting firm KPMG has resigned and its lucrative government contracts are under threat amid a growing scandal over alleged leaks of clients’ confidential information.
The London-headquartered company allegedly leaked secret documents and breached independence rules, around the same time its competitor PricewaterhouseCoopers (PwC) was banned from working for the Australian government for leaking confidential tax information for commercial gain.
KPMG has already lost at least one $10m-a-year contract and will face two inquiries. Here’s what you need to know.
What has KPMG allegedly done?
The allegations came to light when Labor senator Deborah O’Neill shared the testimony of a KPMG whistleblower under parliamentary privilege in a speech on 24 March.
O’Neill said the whistleblower – a former staff member at the firm – alleged clients’ confidential information was repeatedly shared internally to win lucrative contracts for audits.
Top KPMG partners Eileen Hoggett and Paul Rogers were named in parliament as having allegedly shared confidential information from a long-term audit client, Lendlease, with other KPMG staff to help them win other contracts. The Lendlease chair was allegedly not told.
The whistleblower also alleged inappropriate handling of documents from Macquarie Group, Westpac and Dexus dating back to 2023, O’Neill said. The speech also referred to a Telstra leak but it is understood that involved confidential Optus data.
O’Neill alleged the whistleblower had contacted executives and board members of KPMG Australia and KPMG International but was not given a hearing.
KPMG Australia declined to directly comment on specific allegations. On 14 May the company said it had been aware of the allegations since early 2024 and had made “significant” efforts to investigate and respond.
Sign up for the Breaking News Australia emailOn 29 May, it said its treatment of the whistleblower fell short of its expectations and its initial investigation was not rigorous enough. That investigation was backed by a second review by external law firm Ashurst and a third by law firm Allens, though Allens is now challenging its past finding in a fourth review, KPMG told a parliamentary inquiry.
KPMG International said it took the situation seriously, supported KPMG Australia’s response and took appropriate action on all reports on its whistleblower hotline.
What contracts could KPMG lose?
KPMG will lose its audit contract with Lendlease, with the developer announcing a review of its audit contract after this financial year. KPMG had audited Lendlease for decades and was paid about $10m a year in fees.
The Reserve Bank told Senate estimates it would put its non-audit contracts with KPMG back out to tender.
The Australian government will also examine all of its contracts with KPMG, according to the assistant treasurer, Daniel Mulino. The government’s tender website lists over $650m in active KPMG contracts, of which nearly $20m are for audit services, including for the Reserve Bank and the Australian Electoral Commission.
The Victorian government is also reviewing all its KPMG contracts, while Queensland, New South Wales, the ACT and South Australia have sought assurances from KPMG their confidential information was not leaked and are considering further action. The governments of Western Australia, Tasmania and the Northern Territory did not respond to requests for comment.
Dexus said it was “engaged directly” with KPMG’s board and executive over the breaches, while a Telstra spokesperson said the telco had sought more information from KPMG on a breach of client information and would then consider how to respond. The Telstra spokesperson said KPMG had only a “small proportion” of its consultancy contracts.
Westpac, meanwhile, is reportedly considering tearing up its audit contract with KPMG. It declined to comment when asked to guarantee the firm would keep its contract. Macquarie Group did not respond.
What else could happen to KPMG?
KPMG’s Australian chief executive, Andrew Yates, and the national managing partner of audit and assurance, Julian McPherson, have resigned. Each stated they took accountability.
Hoggett has stepped down as chief operating officer while investigations are under way but remains an audit partner at the firm. A Dexus spokesperson said Hoggett had also been removed as the top partner on its audit. Rogers has been removed from the Dexus and Lendlease audits and KPMG has penalised another audit partner.
The corporate regulator, the Australian Securities and Investments Commission (Asic), has told senate estimates it is formally investigating Hoggett and Rogers while making preliminary investigations into others. Asic’s chair, Sarah Court, has called for tighter regulation of partnerships to close a gap in oversight.
The assistant treasurer said the federal government will consider new laws to address that gap and to better support whistleblowers like KPMG’s.
The peak accountants’ body has separately said it is investigating three KPMG partners who stepped forward in April. Two KPMG International executives and 12 Australian personnel, including Yates, McPherson, Hoggett and Rogers, have been called to face a parliamentary inquiry on 19 June.
How does this compare with the PwC leaks?
The consulting sector has previously faced backlash for inappropriately sharing secret information.
A PwC partner was found to have leaked Australian government information to help clients in Australia and the US avoid tax. The revelations triggered police investigations and PwC was banned from competing for new government work for two years.
The value of government contracts signed with the big four firms – PwC Australia, KPMG, EY and Deloitte – nearly halved, from $218m in 2021-22 to $114m in 2024-25.
Whereas PwC’s scandal involved leaks from federal government clients to benefit other clients, KPMG faces allegations of leaking private clients’ information to benefit itself.
Senator O’Neill has suggested the KPMG allegations should raise concerns for every company and agency audited by the firm.
“If a company like KPMG can do that to Lendlease, they can do it to anyone,” O’Neill told the ABC.
