KPMG revenues in Australia down 4 percent to $2.1 billion
The Australian branch of professional services firm KPMG has posted $2.1 billion in revenues for its 2025 financial year to July, the dip of around 4 percent partially offset by improved profitability.
KPMG’s business in Australia has gone backwards for the second consecutive year – from a peak of $2.5 billion in 2023 to now sit just a touch above $2.1 billion – as persistent economic headwinds and structural shifts continue to impact the consulting market.
The latest figures represent a further 4 percent downturn on KPMG’s previous financial year, however a number of measures have seen improved profitability, with average partner earnings up by 10 percent and expectations the firm will return to growth this year.
“This is a strong result in what was a highly unpredictable environment,” stated KPMG Australia chief executive Andrew Yates. “I’m really pleased with how our people and partners responded to the challenges that emerged during this year like no other, where our multidisciplinary model came to the fore with excellent results across most parts of the firm.”
The consulting slowdown
One part of the firm which didn’t do so well, rather glaringly, was KPMG’s consulting division, which was down by a whopping 18 percent following a 14 percent drop in the previous period. In contrast, KPMG’s mid-market Enterprise division backed up its previous 20 percent gain with a further 13 percent increase last year, contributing $434 million towards total revenues.
That figure marks Enterprise as the firm’s second-biggest money spinner behind the ~$750 million still generated by Consulting, with a fair chunk of it also derived from advisory. Meanwhile, Audit & Assurance and Tax & Legal were both up by over 7 percent, respectively contributing $365 million and $240 million, with Deal Advisory & Infrastructure remaining relatively flat to pitch in ~$330 million.
As to its consulting division, which has been particularly hit by the federal government’s efforts to reduce its reliance on large consultancies, KPMG pointed to its recently rejigged, tech-focussed strategy and investments in artificial intelligence as reasons to be optimistic for a rebound, with Yates expecting a modest return to firm-wide growth over the current twelve-month period.
One aspect of realigning its consulting division has been job cuts (an exercise the firm says is now largely complete), with KPMG’s overall headcount reduced to below 9,000 and its partnership tally sitting at around 685, including an increased 47 mid-year promotions. The proportion of female partners at the firm has now crept up to 37 percent, up one point on last year.
As to governance, KPMG noted its chairman Martin Sheppard will also take on the role for the firm’s Asia Pacific business from October, while Victoria chair Carmel Mortell has taken over as national deputy. Paul Low, as a dedicated chief risk officer, and general counsel Louise Capon have also been added to KPMG’s national executive committee to further bolster its risk leadership.
