Australia politics live: Labor makes move to crack down on consultants after latest scandal

Australia's federal government is taking steps to rein in the consulting industry after a significant scandal at KPMG, where partners leaked confidential client information. The government has released an options paper outlining potential new regulations for accounting, auditing, and consulting firms.

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In recent years, we have seen behaviour from some large accounting, auditing and consulting firms in Australia that is not fair and honest. This has undermined trust in the firms themselves and raised broader questions about the resilience of the frameworks meant to uphold market integrity. It is time to return trust and integrity so that the government, taxpayers and other businesses can rely on the services of large accounting, auditing and consulting firms.

The proposed measures aim to enhance quality management and ethical standards within these large firms. Options being considered include imposing stricter ethical obligations, potentially separating different business functions, reducing partnership limits, and introducing new governance rules. Mandatory periodic testing for audit services or regular contract rotation are also on the table. Assistant Treasurer Daniel Mulino stated that recent behavior from some firms has "undermined trust" and that it is "time to return trust and integrity."

This initiative follows the KPMG scandal, in which staff leaked confidential information about Lendlease and Optus to colleagues applying for lucrative audit contracts. The situation also highlighted mishandling of a whistleblower who raised the alarm. The government hopes these reforms will restore confidence in the integrity of the market and ensure that businesses and taxpayers can rely on these professional services.

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supply and need just aren’t lining up, and that points to a market that needs proper stewardship.

In a related development, independent member for Bradfield, Nicolette Boele, has thrown her support behind calls for a national early childhood education and care commission. Boele argued that the current market requires "proper stewardship" as supply and demand are not aligning. She urged the government to commit to a firm timeline for establishing such a commission, emphasizing that families cannot afford to wait for ongoing reviews while facing mounting costs.

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If you’re in that position, hearing that the government is waiting for Deloitte to finish a report before they can increase the childcare subsidy, doesn’t hold up. Families can’t budget around a maybe. I’ve written to the minister, and I want the government to commit to a national commission with a firm timeline – not keep it on the “considering” pile.