KPMG to Face New Federal Government Review into ‘Ethical Soundness’
The Albanese government has initiated a new review of KPMG Australia following disclosures that the firm leaked client information and mistreated the whistleblower who reported these issues.
Finance Minister Katy Gallagher announced that her department will appoint Ian Watt, former Defence Department secretary, to lead an investigation into KPMG’s “ethical soundness.”
In a letter to Senator Deborah O’Neill on Thursday, Gallagher stated that the review will examine KPMG’s culture and governance structures. Evidence presented at a parliamentary inquiry last Friday scrutinized KPMG’s management and revealed that its independent board directors received direct advice from the company’s chair.
KPMG recently declared it would appoint an independent chair and additional independent directors. The firm also announced reviews of its policies, audit conduct, and whistleblower procedures, while its chair and two partners will resign, following the departures of the CEO and former head of audit.
The government’s inquiry will assess whether these measures are sufficient and if KPMG disclosed and addressed the issues appropriately, as outlined in its terms of reference. The report is due by 30 September, coinciding with the scheduled lifting of the government’s blacklist on new KPMG contracts.
KPMG partners are also under investigation by the corporate regulator and the peak accounting body.
Outgoing chair Martin Sheppard expressed support for governance changes at KPMG and is not accused of any wrongdoing.
Inflation Falls to 4% in May
Inflation declined to 4% in the year to May, down from 4.2%, offering an early indication of easing price pressures.
Data from the Australian Bureau of Statistics confirmed that inflation remains elevated but has softened, likely below the expectations of the Reserve Bank of Australia (RBA) and economists.
Excluding the most volatile price changes, the RBA’s preferred measure of annual inflation increased to 3.6% from 3.4%.
Angus Taylor Offers to Meet Pauline Hanson Amid Political Tensions
In a 2GB interview, Opposition leader Angus Taylor stated he has extended an offer to meet with One Nation leader Pauline Hanson, who claimed she had not spoken with Taylor for years.
Taylor expressed openness to collaboration but noted Hanson has not responded to his invitation.
"All you can do is lead a horse to water, you can’t make the horse drink … So I’ve led the horse to water. I’ve made the offer. She knows where I am, she knows where my office is. The door is always open, and in fact, the context within which I made that offer was to talk about how we oppose these toxic taxes of Labor’s, to work together to try and bring them down."
Taylor also claimed he had "stemmed" the flow of votes to One Nation, whose primary vote has surged recently, surpassing both the Coalition and Labor.
2GB host Mark Levy expressed skepticism about Taylor’s claim.
Taylor: "Well I could argue with you over that because what we’ve seen is a collapse before then, and that collapse we’ve stemmed. But look at the end of the day …" Levy: "Hang on, on that, Angus. I mean, it’s all well and good for us to talk about there being a collapse, are you seriously suggesting to me that there’s been an improvement in the polling for the Coalition?" Taylor: "Well, can I say that, as I said, there was a collapse happening and we’ve stemmed that."
Taylor Supports ‘A Version’ of Multiculturalism
During the 2GB interview, Taylor addressed his stance on multiculturalism, emphasizing that he does not support a monocultural Australia as suggested by Hanson last week.
"We need every Australian to believe in our system of law, to believe in our basic freedoms, to believe in our parliamentary democracy … enforcing that and making sure that people who come to this country contribute to this country and commit to it, that’s not a monoculture. Now, you can call that whatever you like, but I just think that’s common sense. And I’d rather talk about common sense on this than these labels that people love to give. You know, it is a version of multiculturalism, but I tell you, what I’m talking about, it is not Labor’s multiculturalism where they simply say anyone can come here with any culture and it’s all OK."
Taylor further noted Australia’s history of immigration from countries like Italy and Greece, highlighting that migrants adopted core Australian values while maintaining cultural traditions.
"They all became Australian and adopted our core values even though they were still eating their food and wearing their clothes and all of those things from the place they’d come from. That’s the Australia we believe in."
Pocock Criticizes Government Secrecy Over AI Copyright Deliberations
Independent Senator David Pocock raised concerns after receiving information from a whistleblower regarding potential government changes to copyright laws that could permit technology companies to mine Australian data for training artificial intelligence models.
Pocock indicated that two submissions are pending cabinet consideration: one proposing a full exemption for data mining, and another suggesting a licensing arrangement.
"[I] got, I think, pretty solid information that there are two different submissions going to cabinet. One is a full out exception, a text and data-mining exception. They’re basically exempt. Go for it. Don’t worry about copyright. The other option is some sort of extension of copyright where there’s a licensing arrangement, which, you know, I think, depending on how it’s done, artists and others could come round to it, if it was on fair terms, and you could actually negotiate your copyright. The thing I take exception to is there’s just so much secrecy with this government. Why aren’t we having this conversation with the rights holders themselves? This is their copyright. They should have a place at the table."
NSW Shark Response to Include Drones, but Not on Every Beach
NSW Premier Chris Minns confirmed that shark safety measures will incorporate increased use of drones, though not on every beach in the state.
The government has indicated that shark safety initiatives, in response to multiple attacks over the past year, could be funded from a $1.1 billion contingency fund.
When asked about daily drone operations on beaches, Minns stated:
"The short answer is, we are looking at that. I’ll be, I’ll be honest with you, it won’t be every beach, we just can’t cover them. There are hundreds of beaches in NSW, but we think that we can make a measurable difference to the number of beaches and the hours of operation. We hope to announce something pretty soon. We’re getting the final stages of how much it will cost, how who will operate it, it’ll be surf life saving, and how we can roll it out as soon as possible. I just want to make the point that we’ll be using technology that’s available, but hasn’t been rolled out at scale anywhere in the world."
Opposition Raises Concerns Over Workplace Relations Bill
Jane Hume and colleagues addressed concerns about a workplace relations bill currently debated in the House, which they claim could have significant implications for government contract procurement.
The opposition supports the bill’s aim to improve Fair Work Commission efficiency in handling issues such as unfair dismissal claims but alleges that Labor has included an additional provision allowing the Commonwealth to favor businesses with union agreements in procurement, contracting, and grants.
"We’ve already seen ACCI [Australian Chamber of Commerce and Industry], we’ve seen the BCA [Business Council of Australia], we’ve seen the Master Builders Association, HIA [Housing Industry Association], all come out and say that this is an outrage, that no one has been consulted on this change, that it has gone through, it has been rushed. It is going to fundamentally change, fundamentally affect the way the commonwealth deals with the private sector, and yet Labor, true to form, has tried to sneak this into a piece of legislation which we would otherwise support."
Deputy Opposition Leader Jane Hume Affirms Multiculturalism
During a press conference, Jane Hume responded to questions about Angus Taylor’s recent comments on multiculturalism.
"This is a ridiculous argument … I reject the politics of identity of the left on multiculturalism, but my goodness, I also reject the policy of cultural sphere from the right. We are a multicultural society. Let’s face it, we already are. We are a multicultural society. I don’t really care where you came from. I don’t give two hoots what your country of origin is. What I care about is whether you’re going to contribute to building our nation that’s worth fighting for."
Hume stated that she and Taylor are aligned on this issue and that Taylor values Australian principles.
Hume Criticizes Eight-Week NDIS Inquiry as ‘Performative’
Jane Hume described the government’s eight-week inquiry into the National Disability Insurance Scheme (NDIS) overhaul as “performative.” She criticized the Greens for agreeing to the inquiry in exchange for passing tax reforms.
The government plans to vote on the bill in August, after the inquiry report is released.
"That eight-week inquiry into the NDIS, I think, is entirely performative. Let’s face it, those NDIS changes could pass this week, and we’ve said that we’ll work cooperatively with the government to do exactly that. The Greens have really sold their soul on this one, and what for? A bag of beans. Not only have they said that they will rush these taxation changes through, adding something as minor as changes to the super into self-managed super funds. I mean, that’s just gratuitous and mean-spirited, but more importantly, they’ve also denied scrutiny of another dozen pieces of legislation."
Tim Wilson Defends Past Paid Parental Leave Comments
Shadow Treasurer Tim Wilson addressed criticism over his 2013 comments on paid parental leave (PPL), where he stated, “that is not my choice that women have children … it’s genetic.”
Social Services Minister Tanya Plibersek referenced these remarks, but Wilson clarified his position on .
"I support paid parental leave, I just didn’t support – and this is the oddity, and she knows this – I didn’t support the Abbott government’s proposal on paid parental leave, and that’s what I was talking about at the time. Minister Plibersek has a long history of trying to drum these debates up."
Prime Minister Albanese Highlights Paid Parental Leave Extension with Baby Photo
Prime Minister Anthony Albanese participated in a photo opportunity holding a baby as the government promoted the upcoming extension of paid parental leave.
The PPL will increase from 1 July to 26 weeks, to be shared between both parents, except in single-parent families.
Labor Plans to Pass NDIS Reforms in August
Following a deal with the Greens to pass tax reforms, Labor is working to secure passage of the NDIS overhaul.
The Greens have pledged to oppose the NDIS bill entirely, while the Coalition remains open to the changes. The government aims to debate the reforms after the extended inquiry concludes on 14 August.
Finance Minister Katy Gallagher stated:
"We intend to deal with that bill in the second week of the August sitting. That is our position. The Greens understand that, we understand their position. And so it really comes down to how do we get the votes through the Senate, and that will rely on the Coalition working with us on delivering the NDIS bill. We’re not going to convince the Greens, they’ve taken a decision. They don’t want that bill to pass."
Chris Bowen Requests Investigation into Power Companies’ Supply Fee Increases
Energy Minister Chris Bowen has asked energy retailers to explain why some prices are rising from 1 July, despite expectations of price reductions under the latest default market offer.
Households in most regions are expected to see price decreases of up to 10%, according to the Australian Energy Regulator’s 2026-27 default market offer.
Bowen noted that not all companies must apply the default market offer to all prices but referred retailers to the Australian Competition and Consumer Commission (ACCC) to investigate possible misconduct where prices should be falling.
"Companies have to comply with the default market offer for their relevant default offers, but they don’t have to apply it to all their market offers. We’ve seen some companies, not all, far from it, choose to increase their fixed supply costs while reducing their per-kilowatt hour costs. What I’ve asked the regulators to do is look at that and ensure it complies, particularly with the prohibited misconduct provisions in energy market laws, which require companies to pass on sustained reductions in energy costs through their bills. I understand these fixed-cost increases have caused a lot of concern. People have raised them with me, quite rightly, and I’ve raised them with energy companies."
Shadow Housing Minister Andrew Bragg Warns CGT and Negative Gearing Changes May Deter Investors
Andrew Bragg expressed doubts about Housing Minister Clare O’Neil’s assertion that the housing market is undergoing a “correction,” noting that prices remain unaffordable for many first home buyers.
"It is a long game, housing, and I am not sure she is a forecaster – but what we are seeing in the entry level housing is still persistently higher prices. The government have pumped prime prices with their collapse of supply and their 5% deposits. Until we see a larger amount of housing supplied I don’t think we will see price stability or affordability."
Bragg emphasized the need for more investors to build homes and warned that capital gains tax and negative gearing changes could discourage them.
"We want more investors. This is the bizarre thing about Labor’s dodgy deal with the Greens, they want to exempt their mates in the super funds so they can build more houses and they want to kick SMSF (self-managed super fund holders) out of the market. It seems like they want to prioritise institutional interests over people. My view would be we want to have more investment in housing, who cares who the investor is."
Labor MP Criticizes Pauline Hanson for Promoting Division
Labor Assistant Minister for Multicultural Affairs Julian Hill criticized One Nation leader Pauline Hanson for advancing extreme and conspiratorial political views.
"She wants to make it easier to sack people, to cut conditions for working Australians, massive cuts to the he...
