Australia Weighs Audit-Consulting Split

Australia is facing a regulatory reckoning as government proposals target the Big Four’s business model following a wave of scandals. After PwC’s government tax leaks and KPMG’s data misuse, policymakers are considering licensing requirements for all audit firms, capped penalties of up to $910 million, and even a forced split between audit and consulting arms for firms serving the same clients. The stakes are huge: if the separation rules stick, the scale that once made the Big Four dominant could become a burden, and clients—especially in government and regulated sectors—may see prices rise as firms scramble to tighten controls and retain trust.

But here’s the catch: ramping up enforcement requires resources, and Australia’s audit regulator has already seen inspection rates fall over the past decade. If ASIC lacks the muscle to police the new regime, smaller firms could struggle under compliance costs, while the Big Four bet on capital buffers and leadership stability—PwC’s Kevin Burrowes is locked in as CEO through 2028 to steer through the reform storm. Meanwhile, across Ireland, Africa, and Bermuda, PwC is expanding leadership and pitching bold policy ideas, from modernized R&D incentives to corporate tax reforms, all aimed at shaping growth and staying ahead of regulatory tides.

Featuring reporting from AFR, BizzBuzz, International Tax Review, and PwC Ireland, with insights from PwC leaders across Africa and Bermuda.

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