KPMG is using a strategy of ‘land and expand’ to make millions off taxpayer money, new data shows.
Austender data compiled by the Parliamentary Library reveals that in this financial year, KPMG made $114 million from 149 contract amendments on top of their initial $73 million in head contracts.
Which means, KPMG made more money from government contract amendments than from initial contracts it secured (as of 5 June 2026).
The Greens say Labor’s “3 month ban” on new KPMG contracts won’t make an iota of difference when the Big 4 firm makes its sweet profits though contract amendments.
KPMG has been accused of multiple scandals and will be questioned by the Federal Parliament tomorrow over allegations it misused confidential client information to get more audit work and mistreated a whistleblower. Meanwhile, the Government continues to employ KPMG’s services – in the many millions.
As stated by Greens finance and public service spokesperson Senator Barbara Pocock:
“Contract amendments are how KPMG makes its sweetest super-profits from government coffers.
“The fact that KPMG makes more money from contract amendments than actual contracts shows the scale of the problem we face with the Big 4. They are taking the piss!
“Here we have the classic ‘land and expand’ strategy routinely employed by the Big 4 consulting firms. They get a foot in the door with a minor contract that they leverage so they can expand their massive earnings. This is a lucrative strategy with wide ‘back end’ profit margins.
“We know the Big 4 make their real money in contract extensions – who can forget the BoM’s website bungle. The initial contract of $4.1 million blew out to $96 million – what a joke.
“Past Senate inquiries have shown that land-and-expand tactics, profiteering and poor value for money are rife within the consulting sector.
“The Big 4 consulting firms systematically pursue ‘land-and-expand’ strategies. They lie to us – as KPMG did – about their systematic power mapping to find new clients and then put out the bait and work their relationships. This is how the Big 4 roll. It’s literally their business model to land and expand.
