What is the KPMG Australia data-misuse scandal and why is it escalating?

KPMG Australia is facing a deepening crisis following allegations that its partners misused confidential Lendlease board papers to illicitly pitch for and win lucrative corporate audit contracts. The scandal has intensified because internal partners are demanding wider executive accountability, and the Australian Securities and Investments Commission (ASIC) is now formally investigating senior figures.

Who are the key executives impacted by the KPMG Australia scandal?

KPMG Australia CEO Andrew Yates and head of audit Julian McPherson have already departed the firm. Currently, Chairman Martin Sheppard and former Chief Operating Officer Eileen Hoggett are facing intense internal pressure from partners to resign.

Why is Westpac (ASX:WBC) considering dumping KPMG as its auditor?

Westpac (ASX:WBC) is reviewing its relationship with KPMG due to allegations that the accounting firm used leaked inside information to secure the bank's business. Westpac is considering putting its $32 million-a-year audit contract out to tender just two years after awarding it to KPMG.

How does the Westpac decision threaten KPMG’s other major corporate audit contracts?

If Westpac (ASX:WBC) defects, it creates a reputational domino effect that threatens KPMG’s recent pipeline of major corporate clients. Specifically, it endangers pending audit contracts with Macquarie Group, Wesfarmers, and Brambles, which are collectively worth nearly $100 million annually.

What financial impact does the government's "significant event" declaration have on KPMG?

The Australian Federal Finance Department has officially declared the scandal a "significant event," putting $270 million in active government contracts under review. Public sector clients can now legally demand strict guarantees that no KPMG personnel assigned to their projects are linked to the misconduct.

Image for illustrative purposes only. Not a real photo.

KPMG Australia faces deepening crisis amid scandal

Written by Heidi Cuthbert Published Jun. 7 2026Last Updated Jun. 8 2026

KPMG Australia faces a deepening crisis as Chairman Martin Sheppard and former COO Eileen Hoggett confront intense internal pressure to resign over an escalating data-misuse scandal.

Despite the recent departures of CEO Andrew Yates and audit head Julian McPherson, partners are demanding wider executive accountability as the federal government puts $270 million in contracts under review.

The Australian Securities and Investments Commission confirmed it is investigating Hoggett and audit partner Paul Rogers.

Allegations surface that KPMG partners misused confidential Lendlease board papers to illicitly win lucrative external corporate audits.

The fallout has expanded globally, with revelations that KPMG International previously dismissed the whistleblower’s warnings.

Westpac (ASX:WBC) is considering dumping KPMG and putting its $32 million-a-year audit contract out to tender, just two years after moving from PwC.

The Sydney-based lender is also pushing KPMG to cover the multimillion-dollar costs of this process.

A defection by Westpac threatens to derail KPMG’s pending $100 million audit wins with Macquarie Group, Wesfarmers, and Brambles.

The Federal Finance Department has declared the scandal a "significant event", allowing public sector clients to demand guarantees that personnel are untainted by the misconduct.

Amid fears of an unofficial government blackban, KPMG’s Canberra operations face a major revenue cliff as $330 million in federal contracts expire this month.

Assistant Treasurer Daniel Mulino responded by reopening an examination into partnership governance, including potential ASIC oversight and partner caps.

Sheppard and Hoggett are among a dozen partners summoned to face a parliamentary enquiry on June 19.