The Department of Finance commissioned the Independent Review of KPMG Australia (KPMG) following allegations raised in the Senate on 24 March 2026 about KPMG’s conduct, governance and culture. Dr Ian Watt AC was appointed Independent Reviewer on 24 June 2026. He provided his Report to the Secretary of Finance on 14 October 2026.
The Review found that KPMG failed to respond appropriately to concerns raised by a whistleblower and that this reflected broader weaknesses in the firm's culture, governance and accountability arrangements. While KPMG had established policies, reporting channels and oversight structures, the Review found these did not operate effectively in practice to provide appropriate support to the whistleblower, identify emerging risks, or ensure timely and coordinated decision-making. The Review concluded that KPMG's response to the matter was fragmented, lacked clear ownership and did not adequately bring together warning signs that warranted closer scrutiny. While recognising reform efforts underway within KPMG, the Review concluded that restoration of trust will depend on KPMG’s sustained implementation of reforms, independent assurance and demonstrated improvements in practice.
The Review also considered the implications of its findings for the Commonwealth and made suggestions for improvements to the Commonwealth Procurement Framework.
The Report includes 8 recommendations. Six recommendations are administrative in nature and are for KPMG, Finance or a combination of both to implement. Two recommendations suggest changes to the Commonwealth Procurement Framework and require further consideration by Government.
The Report, Finance’s Response, and related procurement policy note guidance are available below.
