The Full KPMG Australia Scandal Timeline
A complete chronology of the KPMG Australia audit scandal, from whistleblower allegations and client confidentiality breaches to resignations, regulatory scrutiny and client fallout
The KPMG Australia scandal began with a whistleblower’s 2024 allegations that senior partners misused confidential Lendlease board documents to gain an unfair edge in winning major audit mandates, including Westpac.
The story exploded into the open in 2026 after parliamentary revelations, a firm admission that internal investigations “fell short,” multiple leadership exits, fresh admissions of further breaches (including Optus-related material), regulator action, and mounting client and government fallout.
It also fits a broader Australian pattern, in which the Big Four have been forced to confront the consequences of treating confidentiality, independence, and oversight as problems to manage after the fact rather than standards to protect from the start.
The scandal has put reform back on the table, reviving proposals that were floated after the PwC tax leaks scandal but went nowhere at the time — including tougher independence rules, stronger whistleblower protections, tighter oversight, and a harder line on separating audit from consulting.
Timeline of a Scandal
6 November 2023 — The “Lunchgate” episode: a proposed tactic to leave a laptop open at KPMG’s Barangaroo office so others could view Dexus materials. Jeff O’Sullivan went to lunch, leaving his laptop open on confidential Dexus internal audit documents so the external audit bid team could view them while writing the tender to bit for the external audit.
Late 2023–March 2024 — Westpac audit tender raises conflict-of-interest questions.
During Westpac’s audit tender, Peter Nash, Westpac’s audit committee chair and a former KPMG Australia national chairman, attended audit pitch meetings. KPMG chair Martin Sheppard later told a parliamentary hearing that Nash had stayed at his house during the pitching process, describing him as a long-standing friend. Westpac said Nash declared his KPMG links and was not on the selection committee, but later acknowledged the perception of bias created by those relationships.
March 2024 — KPMG wins Westpac audit tender (from PwC).
30 May 2024 — A KPMG audit director made a formal internal disclosure about the alleged misuse of confidential client board papers and other concerning conduct.
30 May 2024 — Julian McPherson, then head of audit, authorised the first search of the whistleblower’s work laptop. IT staff covertly accessed the device and extracted documents detailing the allegations, which were then shared with senior partners and then-CEO Andrew Yates.
21 & 26 November 2024 — Further searches of the whistleblower’s laptop are carried out covertly by KPMG.
November 2024 — KPMG won the Dexus audit engagement.
2023–2024 — The whistleblower alleges KPMG used confidential information and relationships with ex-KPMG partners, including Michelle Hinchliffe at Macquarie, to bolster pitches and capture the Macquarie Group audit.
24 March 2026 — Senator Deborah O’Neill uses parliamentary privilege to make the whistleblower’s allegations public, triggering national scrutiny.
April 2026 — ASIC begins a preliminary probe into KPMG.
April 2026 — According to KPMG, the firm sanctioned individuals after identifying inappropriate internal sharing of client-related material and an inappropriate informal remark. KPMG said the sanctions were endorsed by a board sub-committee and that relevant individuals self-reported to CA ANZ.
14 May 2026 — KPMG admits to one confidentiality failure.
29 May 2026 — CEO Andrew Yates and National Managing Partner of Audit Julian McPherson resign. Stan Stavros is appointed interim CEO. KPMG says the appointment is temporary while the firm continues the process of selecting a permanent successor.
3 June 2026 — Eileen Hoggett, KPMG Australia’s former chief operating officer, steps down from her senior role after Andrew Yates and Julian McPherson resign.
5 June 2026 — ASIC confirms a formal investigation into KPMG and names Eileen Hoggett and Paul Rogers as two registered company auditors under formal investigation.
5 June 2026 — Client fallout begins to become concrete. Dexus said Hoggett would not sign off its 2026 accounts. Rest, the Australian superannuation fund, sought more information from KPMG, and the Reserve Bank of Australia said it did not expect to reappoint KPMG to its whistleblower service.
9 June 2026 — KPMG International is reported to have blocked further partner exits amid concern about audit disruption and capital repayment pressure.
14 June 2026 — Parliamentary hearing line-up becomes public. More than 30 witnesses summoned to appear at the 19 June hearing, including KPMG senior leaders, Lendlease executives, Ashurst, Allens and ASIC.
15 June 2026 — Government scrutiny intensifies; the federal government says KPMG will not bid for new federal work from 16 June to 30 September.
15 June 2026 — Lendlease announces it will change auditor, representing the first major public client loss tied to the scandal.
16 June 2026 — Greens refer KPMG to the National Anti-Corruption Commission.
19 June 2026 — Parliamentary inquiry hearings commence; KPMG Australia chairman Martin Sheppard, former CEO Andrew Yates, Lendlease executives and others give testimony.
19 June 2026 — During the hearings, KPMG acknowledges further breaches, including the internal sharing of confidential Optus information in the context of a Telstra bid.
22 June 2026 — KPMG Australia’s debt position comes under scrutiny, with reporting pointing to pressure from client losses, revenue covenants and the risk of partner exits.
23 June 2026 — KPMG Australia chairman Martin Sheppard announces he will leave the firm after a short transition period and retire from his regional board responsibilities, as part of a broader governance overhaul.
23 June 2026 — KPMG announced Rogers and Hoggett would leave, the first independent chair would be appointed, independent directors would be added, a lessons-learned review would be commissioned, Principia Advisory would review the whistleblowing system, and confidentiality/audit pursuit controls would be strengthened.
24 June 2026 — The Department of Finance appoints former senior public servant Dr Ian Watt AC to conduct an independent, arm’s-length review of KPMG Australia’s culture, ethics, integrity and governance. The review is designed to assess the firm’s “ethical soundness” and is due to report to Finance by 30 September 2026, the same date the federal government’s pause on new KPMG contracts is scheduled to end.
1 July 2026 — The federal government releases a Treasury options paper on accounting, auditing and consulting reform, including possible audit/consulting separation, ASIC licensing, stronger penalties, partnership-size limits and mandatory audit rotation.
1 July 2026 — Westpac non-executive director Peter Nash, a former KPMG Australia national chairman, steps down from the bank’s board amid scrutiny of his KPMG relationships during the Westpac audit tender process. Westpac said Nash had disclosed his links and was not on the selection committee, but acknowledged the perception issue.
1 July 2026 — AFR reports that KPMG “rainmaker” Evan Rawstron, who managed more than $100 million in contracts, has left the firm.
2 July 2026 — KPMG appoints Michael Ebeid as first independent chair.
2 July 2026 — Parliamentary committee releases Ebeid emails showing he had described some of O’Neill’s claims as “completely false” and her actions as “very inappropriate and unfair”; he later apologised.
12 August 2026 — Submissions are due to close on Treasury’s options paper into the regulation of accounting, auditing and consulting firms.
This timeline will be updated as the scandal evolves.
KPMG’s scandal is now a test case for whether Australia’s Big Four can be trusted to police themselves. With ASIC investigating, government contracts under review, and calls growing for stronger oversight, the fallout is no longer just about one whistleblower complaint — it is about the future of audit credibility in Australia.
New developments are still emerging.
This is part of Big4News’ continuing coverage of the KPMG Australia Audit Leak Scandal.
KPMG Australia Audit Leak Scandal
The KPMG Australia scandal that erupted publicly in March 2026 represents one of the most significant integrity crises to hit the Big Four in Australia since the PwC tax leaks affair. At its core are allegations—first raised internally by a whistleblower in 2024 and later amplified through parliamentary privilege—that senior partners misused highly conf…
About Claudine Cassar
I’m a corporate anthropologist and former Deloitte equity partner. I sold my technology business to Deloitte in 2016 and led the Malta Consulting team for five years. I now write Big4News, providing independent, clear analysis of PwC, Deloitte, EY, and KPMG — free from corporate spin.
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