Further update on procurement of goods and services from KPMG

Purpose

This Procurement Policy Note provides an update to Commonwealth officials on the procurement of goods and services from KPMG Australia (KPMG).

Context

In June 2026, the Department of Finance released a Procurement Policy Note regarding the engagement of KPMG and announced an independent review of KPMG’s governance, culture, ethics and integrity frameworks.

The independent review is now complete. In response to its recommendations, KPMG has agreed with the Commonwealth that it will temporarily cease new contract engagements with Australian Government entities subject to the Commonwealth Procurement Rules (CPR) until 28 February 2027.

Under this agreement, Commonwealth officials should not enter into any contracts with KPMG for any approaches to market which close prior to 1 March 2027.

This agreement captures new engagements (including under whole-of-Australian-Government Panel arrangements), and / or new contracts with a third party which include KPMG being appointed as subcontractors to that third party.

Non-CPR covered entities are recommended to adopt a consistent approach and cease any new engagements with KPMG prior to 1 March 2027. Officials should note that the exemptions set out in previous procurement policy notes have been amended. Only the following exemptions now apply:

• the variation of existing contracts with KPMG, including the exercise of extension options within those contracts, where approved by the entity’s accountable authority; and
• the ongoing licensing or sale of KPMG proprietary products¹ currently in use by Australian Government entities.

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 Procurement Policy Note - Update to Ethical conduct of tenderers and suppliers contains further guidance for procuring officials.

Further Advice

Finance will provide further advice to entities before the end of the extended agreement period. Further questions relating to these matters can be directed to ethicalsourcing@finance.gov.au.

_{¹In some circumstances, KPMG provides licensing options to clients such as SAAS products, the reselling of third party software or licensing technology products.  KPMG also directly licence tools and models to agencies under annual or three year licence arrangements.  These include the Accelerated Reporting Model,Lease Reporting Model and Central Reporting Model used by a range of departments and agencies to meet their financial reporting obligations.}