KPMG Australia shows disciplined performance in unpredictable FY25: releases annual impact report

11 August 2025

• KPMG Australia reports revenue of $2.315 billion^[i]
• Employed 8,967 people and 637 new graduates 
• Led by 684 partners - including 71 new partners
• Work delivered to more than 13,000 clients
• Taxes paid by the firm and partners – $396 million^[ii]
•  Community impact contribution - $9.83 million, including 34,360 hours through volunteering, mentoring, secondments and pro bono engagements

For the year ended 30 June 2025, KPMG Australia recorded total revenue of $2.315 billion^[iii] , a small decline on the previous year. Careful management of the cost base, productivity enhancements, and business realignment improved firm profitability and supported a significant investment in our people and client delivery through technology and the firm’s Eclipse Learning Academy. Partner earnings also improved on the prior year, with average equity partner remuneration increasing by 10.3%.

Responding to a rapidly changing market, KPMG launched a refreshed firmwide business strategy, adjusting priorities for the conditions and notably putting AI at its centre. The year saw a considerable shift for the Consulting division, rebalancing traditional consulting services with increased focus on technology transformation and AI, driven by changes in the global professional services market. The firm closed its standalone Commercial Law business.
 

KPMG Australia CEO Andrew Yates said: “This is a strong result in what was a highly unpredictable environment. I’m really pleased with how our people and partners responded to the challenges that emerged during FY25, and how we invested in our people and the way we serve our clients. In this year like no other, KPMG’s multidisciplinary model came to the fore, with excellent results across most parts of the firm.”

• The mid-market Enterprise business remained a standout, building on last year’s double-digit growth to record a 13% increase in revenue.
• Audit & Assurance performed strongly, with revenue up 7% - reflecting the impact of improving technology and new audit mandates.
• Increased investment in technology and senior talent saw robust growth in the Tax & Legal business (up 8%). The firm exited its stand-alone Commercial Law business during the year, while retaining the Tax Controversy & Disputes legal practice.
• The Deal Advisory & Infrastructure business saw revenue rise by 2%, reflecting an improving market.
• The market environment for the Consulting business was impacted by a significant reduction in the government use of consultants, as well as the broader economic slowdown, with revenues down 18% for the year.

Revenue contributions from the businesses were^[v] : Audit & Assurance $365 million, Consulting $749 million, Deal Advisory & Infrastructure $332 million, Enterprise $434 million, Tax & Legal $240 million, Other (inc. KPMG Futures) $11 million.

The 3-year digital transformation underway across the organisation neared its end, with systems moving into the Cloud and being AI-enabled. The strength of the firm’s AI governance was recognised with KPMG Australia becoming the first organisation globally to obtain ISO42001 (AI) certification from the British Standards Institution (BSI) on its Trusted AI framework.

“We remain at the forefront of technology development, with our industry-leading AI platform KymChat and other AI tools driving a range of benefits for our firm. I’m excited about what it means for our capability in meeting the evolving needs of our clients and offering our people new skills and opportunities,” Andrew Yates said.

Investment

KPMG continued its investment in technology and people, including an $80 million innovation program to develop new technology for the firm and its clients. There was a record training take-up in AI by the firm’s people – with 7,300 AI digital training badges awarded. The firm also invested in ethical leadership and culture, including hosting the inaugural Ethical Leadership Summit for KPMG people. In line with its commitment to continually strengthen audit capability, KPMG continued to invest in audit quality, both in AI-enabled technology and ESG assurance capacity.

During FY25, KPMG acquired national technology and financial solutions firm Chartertech, adding around 140 specialist technology and accounting staff to the Enterprise business, expanding team size and adding new technology capability. KPMG also opened an AI Build Hub in Fiji to help enhance digital innovation and AI capabilities across the region.

Community impact

KPMG Australia’s community impact contribution was valued at $9.83 million in FY25, including more than 34,360 hours of time, skills and expertise provided by our people through pro bono work, mentoring, skills exchange and volunteering. The firm launched an ambitious commitment during the year to “Help shape better economic futures for 100,000 young people in need by 2030.” Progress updates on this new aspiration will be included in the annual impact report.

Impact report FY25

The FY25 financial results are being communicated as part of the firm’s annual impact reporting. The report presents voluntary disclosures on progress against 16 public commitments made around prosperity, governance, people and planet. These disclosures are made against best practice frameworks using the World Economic Forum's International Business Council Stakeholder Capitalism Metrics and in accordance with the Global Reporting Initiative (GRI) standards. Grant Thornton Australia completed independent limited assurance of revenue, taxes paid and key people metrics included in the report.

“We are making good progress in delivering on our commitments. And we continue to demonstrate that we are holding ourselves to the same high reporting standards to which many of our stakeholders and clients are held. I’m pleased with the firmwide focus on these important benchmarks. It’s a team effort that reflects strong leadership from our partners and the energy and dedication of our people,” Andrew Yates said.

Governance

KPMG Australia made important progress in refreshing and strengthening the firm’s governance, including:

• Independent directors: Patty Akopiantz was reappointed as an independent director, sitting alongside Mike Baird AO and Jane Hemstritch AO on the Board. Michael Ebeid AM was re-appointed as an Independent Board Adviser. Carmel Mortell commenced as the firm’s Deputy Chair; and Martin Sheppard was appointed Chairman of KPMG Asia Pacific, effective 1 October 2025.
• Risk and regulation: Risk governance leadership on the National Executive Committee was expanded with a new fully dedicated Chief Risk Officer and a Head of Office of General Counsel on our National Executive Committee.
• AI governance: KPMG Australia became the first organisation globally to obtain IS042001 (AI) certification by BSI on our Trusted AI framework. Created this year, the Trusted AI Council now oversees AI strategies, policies, and implementation.
• Actively contributed to public policy: KPMG made contributions to more than 30 government and parliamentary consultations, plus published reports on topics ranging from productivity, sustainability assurance and responsible tax to food relief and the regulation of the profession.

People

Key progress areas included:

• Employee gender pay gap (GPG) improved across all metrics: A concerted effort to improve gender equality saw the firm deliver a WGEA Employee Average Base Salary GPG of 8.7% (improved from 10% last year), and a Partner Gender pay Gap of 12.12% (improved from 13.16% last year).
• People metrics
  o The percentage of women in partnership increased to 37% (up from 36% last year).
  o The percentage of partners identifying as culturally diverse increased to 18.4% (up from 14.9%).
  o KPMG hired 26 Indigenous people in FY25 (a marked improvement from the 10 Indigenous people hired last year, although short of its Reconciliation Action Plan target).
• Future-skilled workforce: The firm upskilled a broad base of partners and people in AI, ethics and leadership.
• Sustainable work: The latest internal Pulse Survey showed a +5% uplift in staff perceptions of sustainable workload across the firm, although there is still more work to be done. KPMG adopted the Voluntary Guidelines for Sustainable and Supportive Work Practices developed by the Australian Accounting and Assurance Public Policy Committee

Planet

• Carbon emissions: KPMG recorded a 27% reduction in emissions against its 2019 baseline (as it works towards a 50% reduction target by 2030), despite a small increase in carbon emissions (up 4% from the prior year) attributable to air travel.
• Climate Risk Report: KPMG reinforced transparency on its exposure to physical and transition risks from climate change by voluntarily publishing its second Climate Risk Report, for the first time incorporating KPMG Fiji and KPMG PNG analysis.
• Sustainable AI: KPMG included sustainability as a core principle in the firm’s AI strategy, and for the first time purchased renewable energy to cover electricity emissions from our use of data centres.
• Record applications received from start-ups for the annual KPMG Nature Positive Challenge: with ethical oil startup, Levur, claiming the top prize, and Native Botanical Brewery winning the inaugural First Nations category.

About KPMG Australia’s ‘Our Impact Plan FY25’

The full results of the activities of KPMG Australia, KPMG PNG and KPMG Fiji for the financial year to 30 June 2025 are presented in KPMG Australia’s ‘Our Impact Plan 2025’, with voluntary disclosures on progress against 16 public commitments made on prosperity, governance, people, and planet.

These disclosures are made against best practice frameworks using the World Economic Forum's International Business Council Stakeholder Capitalism Metrics and in accordance with the Global Reporting Initiative (GRI) standards. In addition, KPMG Australia is sharing progress against its long-standing commitment to the United Nations Global Compact Principles and the United Nations Sustainable Development Goals.

To read the full report: https://kpmg.com/au/en/about/impact-plan.html

References

[i] Includes revenue from KPMG Fiji and KPMG PNG. In FY25, these were $20 million for Fiji and $17m for PNG.

[ii] Includes corporate income taxes, net goods and services tax payable, fringe benefits tax, payroll tax, stamp duty and estimated tax payable by partners on income generated from KPMG Australia. Taxes deducted from employee salaries are not included in the calculations of Total Taxes Paid.

[iii] Including recoverable expenses

[iv] FY24 comparative has been presented on a consistent basis to FY25, reflecting refinements to our internal structure’

[v] Divisional revenues exclude recoverable expenses