KPMG Australia reports resilient results for FY24, resets for FY25

KPMG Australia has launched a new business plan for building its future, with AI and technology at its core. The firm is streamlining its operations and focusing on new priorities around its workforce, clients and innovation following a year of subdued market conditions and changes in the profession.

KPMG Australia CEO, Andrew Yates said: “Change is here to stay, and we are continually adapting and evolving to navigate market conditions. 2024 was a year of consolidation. There have been difficult operating conditions globally as well as in Australia in the past 12 months. Overall, I’m pleased with the strength and resilience of our business and performance across our multi-disciplinary firm. I am also very proud of how we’ve continued to invest in our business, notably in the development of our profession-leading AI platform KymChat.”

“To provide a platform for sustainable growth going forward, we have refreshed our strategy – aligning investment globally, anticipating future client needs, and creating an environment for everyone to innovate.”

KPMG Australia today published Our Impact Plan 2024. The report brings together voluntary disclosures on the firm’s public commitments and actions across four categories: Governance, People, Planet, Prosperity.

“While there is always work to do, we have had some great successes and made progress on many of our commitments. I’d like to acknowledge the leadership of our partners and thank our incredible people for their significant efforts and steadfastness across the year,” said Andrew Yates.

Reporting in accordance with Global Reporting Initiative (GRI) Standards

Andrew Yates commented: “We have made important strides in our ongoing commitment to transparency and accountability and the integrity of the data we publish. For the first time, our results are being published in accordance with GRI standards. This is important because our stakeholders can be confident we are reporting in the same way as organisations around the world, including many of our largest clients. We have, and will, consistently adhere to GRI’s reporting principles of accuracy, balance, clarity, comparability, completeness, sustainability context, timeliness and verifiability.”

Key financial metrics independently assured

In a first for a Big 4 firm in Australia, independent assurance has been completed over key data included in the impact report, including revenue.

“Grant Thornton Australia has completed limited assurance over firmwide revenue and taxes paid by the firm and partners, as well as key people metrics. As part of this process, for the first time revenue was determined in accordance with IFRS global accounting principles, representing an important step in our progression towards fully audited financial statements,” added Andrew Yates.

KPMG Australia’s economic contribution for FY24 included:

• Revenues of $2.386 billion
• Employed 9,602^[i] people – including 700 new graduates 
• 691 partners – including 54 new partners
• Taxes paid – $425 million*
• Community impact contribution – $9.78 million

^{*Includes fulltime, part time and casual employees Australia, Fiji and PNG. Excludes contingent workers as of 30 June 2024}

^{Notes:** includes KPMG PNG and KPMG Fiji $41m for FY24, $34m for FY23. FY24 figures have been prepared in accordance with IFRS Principles, with FY23 comparatives presented on a consistent basis to allow a direct comparison.}  

For the year ended 30 June 2024, the firm posted total revenues of $2.386 billion (including recoverable expenses), a 3.9% decline compared to the previous year.

Andrew Yates said: “We continue to build a balanced portfolio across the firm, under our multi-disciplinary model. Our mid-market Enterprise business was the fastest growing, with revenue up by 13%. Audit & Assurance grew by 9% – and I’m pleased that we won several landmark audits including Westpac^[ii], Dexus^[iii] and Iluka. Tax grew by 4% as we sought to reinvest in that business; and Deal Advisory & Infrastructure was flat year-on-year. Understandably, our Consulting business was most impacted by difficult conditions, declining by 14% against the prior year. However, as we communicated in June, we are reshaping and simplifying this business to have a strong focus on technology and transformation.”

Under the firm’s new operating model introduced early in the year, contributions from the businesses were: Audit & Assurance $340 million, Consulting $915 million, Deal Advisory & Infrastructure $349 million, Enterprise $385 million, Tax & Legal $242 million.

Investment

Andrew Yates commented: “We continued to invest in our business via new technologies, and our people through our Eclipse Learning Academy. We have committed more than $80 million on AI and technology platforms in FY25, including the launch of our AI Eclipse Learning Academy to upskill our people and further development of KymChat, our KPMG AI platform.”

Alliance relationships were deepened, including through enhanced collaboration with Microsoft in Australia as part of a US$12 billion global commitment to reshape professional services across business-critical areas. KPMG continued to invest directly in the strategic adoption of AI across the firm’s operations. KymChat, the secure and bespoke KPMG AI tool created in 2023 that leverages the Microsoft Azure OpenAI platform is enhancing efficiency and decision-making capabilities. A client version of KymChat was launched and KymTax was introduced to support KPMG Tax professionals prepare tax advice.

Societal impact

The firm made a community impact contribution valued at $9.78 million. Every part of the firm was involved in sharing their time, skills and expertise through pro bono work, mentoring, skills exchange and volunteering. Overall, 2,641 people engaged in over 37,000 hours of community impact.

Key progress areas included:

• Independent directors. The Board has three independent directors: Patty Akopiantz, Mike Baird AO, Jane Hemstritch AO (up from two the previous year). Michael Ebeid AM joined as an Independent Advisor to the National Board.
• Risk and regulation governance. The National Board Committee structure was reviewed, including establishing a new Governance, Regulation & Compliance Committee.
• Ethical Culture program. Visibility of, and engagement with reporting channels were actively strengthened. More people did speak up during the year, showing increased confidence in processes. 

Key progress areas included:

• Limited assurance: For the first time, limited assurance was obtained over four key people metrics:
  • The percentage of women in partnership was 36.3% (up from 35.1%).
  • The percentage of partners identifying as culturally diverse increased to 14.9% (up from 14.5%).
  • The number of Indigenous People hired was 10 this year (totalling 68 against a target of 135 Indigenous People across 2021-2025).
  • The Employee Average Base Salary gender pay gap (WGEA) was 10%.
• Employee gender pay gap improved: Employee Average Base Salary gender pay gap (WGEA) was 10% (improving from 10.5% – using same WGEA methodology).
• Building a future-skilled workforce: a focus on AI, ESG and Leadership skills, and 60% of people completing micro-learning.

• KPMG Australia’s first Climate Risk Report. This year, KPMG improved transparency on its exposure to physical and transition risks from climate change by voluntarily publishing its first Climate Risk Report, in alignment with the Taskforce on Climate-related Financial Disclosures’ recommendations and in anticipation of the adoption of the Australian Sustainability Reporting Standards.
• Decarbonising towards net zero. The firm increased its Internal Price on Carbon to $45 per tonne to help further disincentivise air travel and reduce Scope 3 emissions. It grew the proportion of Australian Carbon Credit Units (ACCUs) in its portfolio to 35% (up from 8% last year). The firm remains on track to achieve its target of procuring 100% offsets from the countries it operates in (Australia, Fiji and PNG) by 2030.
• Participation in climate-related activities: 42% of KPMG’s people actively participated in climate-related engagements, training or initiatives with the firm (against a target of 50% participation by 2030).

The full results of the activities of KPMG Australia, KPMG PNG and KPMG Fiji for the financial year to 30 June 2024 are presented in KPMG Australia’s ‘Our Impact Plan’, with voluntary disclosures on progress against 21 public commitments made on governance, people, planet and prosperity.

These disclosures are made against best practice frameworks using the WEF IBC 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 UN Global Compact Principles and the United Nations Sustainable Development Goals (SDGs). 

Hayden Jewell
+61 423 868 454
hjewell@kpmg.com.au

Kristin Silva
+61 411 110 953
ksilva@kpmg.com.au