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

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

Summary

The Australian government is proposing new rules to better control accounting, auditing, and consulting firms after a scandal at KPMG, where partners shared secret client information and mistreated a whistleblower. The plans include stricter ethical duties and possible changes in how these firms operate to restore public trust.

Key Facts

  • KPMG partners leaked private information from clients like Lendlease and Optus.
  • This information was used by colleagues bidding for audit contracts at companies such as Westpac, Dexus, and Telstra.
  • The government released an options paper with ideas to improve regulation of large consulting firms.
  • Possible actions include enforcing quality management, ethical obligations, and separating different business areas within firms.
  • They may also limit the number of partners, impose new governance rules, and require regular checks or rotating audit contracts.
  • The assistant treasurer, Daniel Mulino, emphasized the need to restore trust and ensure firms act fairly and honestly.
  • Separately, independent MP Nicolette Boele supports creating a national childhood education commission to better manage supply and safety in childcare services.
  • Boele called for a clear timeline on government decisions about childcare subsidies following a pricing review by Deloitte.
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