Federal Consulting Shifts Away From Big Four
Non-Defence boutique consulting contracts fell by $113 million in 2025-26 while contract amendment spending more than doubled.
Updated on Nov. 2, 2026 in Professional Services
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Federal government non-Defence boutique consulting contracts dropped by $113 million in 2025-26, while spending on consultancy contract amendments reached $207 million. Mid-tier and boutique firms received 96 per cent of non-Defence consultancy contract value that year.
Why it matters
The shift reflects a federal push to move procurement toward small-to-medium companies and follows scandals involving legacy consulting firms. The Big Four are expected to try to regain government consulting work.
Amendment spending totalled $99 million in 2024-25 before rising to $207 million in 2025-26, while Nous Group received $84.5 million in non-Defence consulting contracts between 2023-24 and 2025-26. Defence contracts are excluded from these figures.
The players
KPMG
KPMG is one of the Big Four professional services firms, and it is banned from new government procurement work until February 2027 following scandals affecting legacy consulting firms.
Nous Group
Nous Group is a mid-tier Australian consulting firm that received $84.5 million in non-Defence consulting contracts between 2023-24 and 2025-26.
Scyne Advisory
Scyne Advisory is a consultancy firm that secured nearly $50 million in non-Defence consultancy work across its first three years.
The details
Contract amendments were injected into existing consultancy contracts rather than new contracts being awarded. KPMG is banned from new government procurement work until February 2027, and Scyne Advisory secured nearly $50 million in non-Defence consultancy work across its first three years.
Timeline
2023-24: Big Four held 19.3 per cent of non-Defence consultancy share.
2024-25: Amendments to consultancy contracts totalled $99 million.
2025-26: New non-Defence boutique contracts fell by $113 million while amendments reached $207 million.
February 2027: KPMG's ban from new government procurement work ends.
Market Landscape
The federal push to shift procurement toward small-to-medium companies has driven mid-tier and boutique firms to capture 96 per cent of non-Defence consultancy contract value in 2025-26. The Big Four share of this work fell from 19.3 per cent in 2023-24 to about 14 per cent, reshaping competition in Australia's government consulting market.
Federal consulting spending is moving toward mid-tier and boutique firms, which may affect which companies bid for government work. Contract amendments rising to 992 in 2025-26 indicate that existing agreements are being adjusted more often than new ones are awarded.
The takeaway
Government consulting work is increasingly flowing to mid-tier and boutique firms rather than the Big Four. Watch whether the Big Four regain share once KPMG's procurement ban lifts in February 2027.
Further reading
For more on the sector, see Professional Services coverage across Australia.
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