Australia to consider breaking up Big Four accounting firms amid scandals

The Australian Treasury has released a paper proposing that the four major accounting firms—Deloitte, EY, KPMG and PwC—be broken up and placed under the oversight of the Australian Securities and Investments Commission. Options include structural separation of audit and consulting arms, operational separation that bars firms from offering both services to the same client, and reducing the partnership size cap from 1,000 to 400 partners.

The move follows a series of high‑profile scandals, including the PwC tax‑leak inquiry, KPMG whistle‑blower allegations of sharing confidential client information, and an alleged EY graduate accessing Prime Minister Anthony Albanese’s bank details. Assistant Treasurer Daniel Mulino said, "In recent years, we have seen behaviour from some large accounting, auditing and consulting firms in Australia that is not fair and honest," highlighting the trust erosion.

Industry bodies have responded: Deloitte welcomed the options, EY’s Oceania CEO David Larocca said the firm supports many proposals, and PwC called the paper an "important opportunity" to rebuild trust. Greens senator Barbara Pocock urged the Labor government to end the Big Four’s special treatment. Public consultation on the proposals ends on 12 August.