Australia Weighs Structural Breakup of Big Four Accounting Firms

The government’s latest consultation paper targets the operational dominance of Deloitte, EY, KPMG, and PwC. Officials are evaluating a reduction in maximum partnership sizes from 1,000 to 400, a move designed to mirror regulatory frameworks currently gaining traction in the United States and Britain. These measures seek to address systemic vulnerabilities exposed by recent failures in firm oversight.

Beyond partnership caps, the Treasury is pushing for a formal structural split between audit and advisory arms. By forcing these firms to isolate their books, regulators hope to eliminate the cross-pollination of interests that often compromises objective reporting. The government has opened the floor for public feedback on these proposals until August 12, marking a definitive attempt to reshape the Australian accounting landscape.