Consulting firm KPMG being paid to perform aged care audits while also advising providers

Consultancy firms are being paid lucrative contracts to audit the quality and safety of residential aged care homes, while simultaneously charging providers for advice on audits and accreditation.

The Community and Public Sector Union (CPSU) believe this arrangement exposes taxpayers and residents to potential conflicts of interest, as consultants could be asked to audit clients that are not disclosed to or detected by government.

Since 2021, the aged care safety and quality commission has been paying KPMG staff to undertake audits of residential aged care facilities. Government contracts show KPMG was paid $104,166 to complete this work between September and March.

The commission has previously told a parliamentary inquiry that it prompts KPMG to declare any conflicts of interest every month and that when conflicts are identified, work is not awarded.

The CPSU has not alleged any rules have been broken regarding aged care.

The work of consultants is under scrutiny as government seek to reduce expensive outsourcing, and after allegations global firm PwC allegedly profited by sharing confidential government tax policy with clients.

The Tax Practitioners Board deregistered former PwC adviser, Peter-John Collins, last year after finding that he shared confidential information and documentation obtained through consultations with Treasury.