SA govt makes call on KPMG ban as firm poised to slash jobs
As interstate governments hold firm on KPMG contract bans, the state government is making its own call on the embattled advisory business. SA jobs are now up in the air.
The South Australian Government is following its own path and not banning advisory firm KPMG from bidding for lucrative contracts and has no plans to do so, a government spokesperson told InDaily today, amid reports that the firm will lay off 1000 staff in September, representing 10 per cent of its workforce.
While it was unclear whether the South Australian office – headed by chairman Justin Jamieson – would be affected, a KPMG spokesperson told InDaily the business was “reviewing our operating model”.
The fallout from a whistle-blower claiming audit partners misused confidential client data and leveraged conflicted relationships to win work has seen the Victorian, New South Wales and Federal governments all announce temporary bans to at least late September on KPMG winning or tendering for work.
KPMG in South Australia employs around 250 people and, as of mid-June 2026, has 31 active contracts with the state government worth $90 million.
Today, the Australian Financial Review reported that dozens of partners and 1000 staff members would be cut in a round of mass layoffs amid an audit misconduct and whistleblower scandal.
A KPMG spokesperson told InDaily that the company was “continuing to evaluate a range of options to ensure the firm remains well positioned for the challenges ahead”.
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“As part of our planning for FY27, we are reviewing our operating model, cost base and workforce needs,” the spokesperson said.
“It is important to note that no decisions have been made regarding any specific measures or potential impact on roles.”
The spokesperson added that “these discussions can create uncertainty, and as decisions are made, we will communicate with our people first and in a respectful way”.
“We are determined to make responsible decisions that position the firm for a sustainable future.”
Earlier this year, the head of KPMG Australia, Andrew Yates, resigned after the corporate regulator confirmed it was probing registered company auditors at the firm.
Last week, John Sams was appointed to lead the firm’s local arm. With a new CEO in place, it was understood that redundancies could now begin in response to a revenue problem caused by the audit scandal.
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Asked by InDaily whether the SA government would consider banning KPMG from tendering for SA public sector work, a spokesperson confirmed the government would not make such a move.
During SA Budget Estimates committee on June 18, SA Treasurer Tom Koutsantonis confirmed the government had 20 active contracts with KPMG for the provision of advisory-type services totalling $22.8 million.
There were 11 contracts for IT-related services totalling $67.1 million with KPMG.
“KPMG have been offering services to governments across Australia for a long period of time,” Koutsantonis said in estimates.
“I do not think we would have started negotiating for a new contract from scratch post the scandal breaking, but there may have been contracts that were being negotiated while the scandal broke.”
At the same time, Koutsantonis also confirmed that the state government’s Under Treasurer Tammie Pribanic wrote to KPMG to seek assurances around confidentiality on information supplied by the SA government.
“They then wrote back to us, detailing their measures to ensure confidentiality, confirming that no South Australian government information was involved in the matters under investigation and government information has not been inappropriately accessed or misused, and no personnel under investigation have provided services on South Australian government contracts,” he said.
The Treasurer said he did not ban KPMG for a “good reason”.
“KPMG employs a lot of South Australians,” he said.
“While KPMG will suffer the consequences of the public humiliation they are going through now, we have sought assurances, we have received those assurances and we are treating KPMG the same way we treated PWC through their issues, remembering that these people are also South Australians and we want to maintain a level of corporate presence here in South Australia while protecting our information.
“I am yet to see any evidence of any misuse of South Australian information as a result of a KPMG contract.”
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