Australia Terminates Ethics Training Contracts with KPMG
The government cancelled its agreements with the firm in July 2026 after concerns regarding the handling of client information.
Updated on Oct. 28, 2026 in Economic Policy
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The Australian government terminated ethics training contracts with KPMG in July 2026. The decision follows concerns about the professional firm's handling of client information.
Why it matters
The termination reflects a broader effort by the federal government to tighten oversight of private consulting arrangements. Bringing ethics training in-house serves to ensure that public service standards are maintained internally.
Official confirmation of the contract cancellation was provided during Senate budget hearings on 27 October 2026. The government has transitioned the ethics training programme to be delivered internally by the Australian Public Service Commission.
The players
KPMG
A multinational professional services network that provides audit, tax, and advisory services to both private and public sector clients.
Australian Public Service Commission
The central government agency responsible for maintaining the standards and integrity of the Australian federal public service.
Anthony Albanese
The Prime Minister of Australia who heads the federal department that terminated its separate contract with the firm.
The details
The contract was axed after KPMG proposed replacing the specific staff members initially nominated to deliver the training sessions. Prime Minister Anthony Albanese's department also terminated a separate arrangement with the firm as part of the broader review.
Timeline
The ethics training contract was formally terminated in July 2026.
APSC officials confirmed the cancellation during Senate budget hearings on 27 October 2026.
Macro View
This move follows historical patterns where the government has sought to reassert control over sensitive internal training functions previously outsourced to private firms. It mirrors a wider trend of public sector agencies auditing their reliance on external consultants for core administrative tasks.
This policy shift means that federal public servants will receive ethics training directly from government instructors rather than private sector employees. Taxpayers will see government resources redirected to maintain these training programmes internally.
The takeaway
Maintaining essential ethics training in-house allows the government to retain direct control over professional standards and information security. Departments are increasingly prioritising internal capacity to avoid the risks associated with external consulting arrangements.
Further reading
For more context on government oversight of private consultants, visit the Economic Policy section.
Source note: This article includes information reported by Bloombergtax.
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