The Australian Department of Finance has extended KPMG Australia’s agreement not to bid for new Commonwealth work until 31 October 2026, one month beyond its previous expiry date.
The department has also extended the deadline for former senior public servant Dr Ian Watt AC’s independent review of KPMG from 30 September to 9 October.
Finance said the additional time would allow Watt to consider the findings of other reviews into KPMG that are expected to report by 30 September.
The review was commissioned in June to examine KPMG Australia’s governance, culture, ethics and integrity frameworks and assess the firm’s “ethical soundness”.
KPMG had agreed not to pursue new Commonwealth work while the review was underway following allegations concerning the misuse of confidential client information.
Under the extended arrangement, Commonwealth officials should not enter into contracts with KPMG arising from approaches to market that close between 16 June and 31 October.
The restriction does not apply to existing contracts, proposals submitted before 16 June or certain licensing and proprietary-product arrangements.
The extension means the procurement restriction will remain in place for several weeks after Watt is now scheduled to report, giving the Department of Finance time to consider his findings before determining what happens next.
The federal action is also not occurring in isolation. Western Australia has separately extended its agreement with KPMG not to tender for new state government work until 31 October.
The development adds another month to the government fallout from the KPMG Australia scandal, which has already resulted in leadership departures, client losses, regulatory scrutiny and a series of independent reviews.
The restriction comes amid continuing scrutiny of KPMG’s extensive Defence work. Despite the freeze on new Commonwealth engagements, Defence has continued to enter into contracts and extend existing work with the firm under exemptions covering pre-existing bids and contracts. Recent procurement records include a A$5.25 million Defence engagement executed after the freeze began, while KPMG continues to hold hundreds of millions of dollars of active Defence contracts.
Finance said it would provide Commonwealth entities with further advice in October.
This is part of Big4News’ continuing coverage of the KPMG Australia Audit Leak Scandal.
KPMG Australia Audit Leaks Scandal
The KPMG Australia audit-leaks scandal, which erupted publicly in March 2026, has developed from a whistleblower’s contested allegations into an established pattern of misconduct, investigative failure and governance weakness. It represents one of the most serious integrity crises to hit the Big Four in Australia since the PwC tax leaks affair.
About the author: Claudine Cassar is the founder and editor of Big4News, covering audit, consulting, regulation and governance across Deloitte, PwC, EY and KPMG.