The Australian government is considering major structural reforms to the country's Big Four accounting firms—Deloitte, EY, KPMG, and PwC—due to recent high-profile scandals undermining public trust [1, 2, 3]. Proposals include breaking up these firms and subjecting them to regulation by the Australian Securities and Investments Commission (ASIC), replacing current state-based oversight [1, 2, 4, 3].

One key reform would cap the size of partnerships in these firms at 400 partners, down from the current 1,000, aiming to limit the firms' size and reduce risks [1, 3]. Another option under review is separating the audit and consulting arms structurally or operationally, preventing firms from offering both services, to avoid conflicts of interest [1, 2].

These reforms follow several scandals starting in 2023 when PwC leaked confidential government tax information to corporate clients to win business [1, 4]. In 2025, Deloitte Australia admitted using artificial intelligence to produce a flawed government report raising concerns about quality control [4]. In July 2026, reports emerged that junior EY staff accessed Australian Prime Minister Anthony Albanese’s bank details before being caught and fired [4].

The Big Four firms currently operate as partnerships and fall outside standard corporate reporting rules under the Corporations Act, creating regulatory gaps [1, 2]. The Treasury released a position paper on July 1, 2026, outlining these reforms to restore trust and close oversight gaps [1, 4]. Assistant Treasurer Daniel Mulino said, "In recent years, we have seen behaviour from some large accounting, auditing and consulting firms in Australia that is not fair and honest. This has undermined trust in the firms themselves and raised broader questions about the resilience of the frameworks meant to uphold market integrity" [1].

Calls are growing for stronger regulatory powers for ASIC, including term limits for audit firms and more industry policing [4]. Australian Greens Senator Barbara Pocock criticized the firms, saying, "Australians have had enough of the repeated scandals. The Big Four firms play by their own rules and get away with it, again and again" [4].

Deloitte welcomed the reforms, saying, "We welcome the release of the options paper by Treasury and the opportunity to engage constructively on any measures which strengthen trust in the profession" [1]. EY's Oceania CEO David Larocca added, "We have an important role to play in restoring and maintaining trust in the sector" [1].

The government is expected to review feedback on the proposals before deciding whether to legislate changes later this year.