KPMG Shuts Down Its Legal Practice in Australia

ВідДіма Гадомський
KPMG Shuts Down Its Legal Practice in Australia
Stolen here — https://www.goingconcern.com/kpmg-australia-gives-up-on-the-idea-of-competing-with-big-law-or-medium-law-or-small-law/

Okay, so technically, this happened back in June. But since Australia is the world’s third-largest legal services market ($28 billion), right after the US ($320 billion) and the UK ($50 billion), the news might be a bit stale, but it’s still a big deal. So, buckle up!

KPMG’s legal arm in Australia was tiny—just around 30 lawyers, including 7 partners. To put it in perspective, KPMG has about 4,000 lawyers globally, and in the UK alone, there are around 300-400 lawyers (couldn’t find an exact number).

Stuart Fuller, KPMG’s Global Head of Legal Services, told law.com:

“We’re going to focus on tax and tax disputes because that’s where we can stand out among other professional service providers. Instead of investing in our own legal services, we want to collaborate with other law firms in the market.”

Now, here’s where the plot thickens. For almost 15 years, the Big 4 have been trying to carve out a significant slice of the global legal market. But traditional law firms have dug their hands so deep into clients’ pockets that there’s barely any space left for newcomers. That’s why, within the Big 4, legal services are more like an accessory to their tax practices. Essentially, at the top management level, legal partners often report to tax partners.

That said, KPMG’s retreat in Australia doesn’t necessarily signal a global strategy shift. It might just be a local experiment: testing whether they can transform law firms from competitors into clients. If it works out, we might see this model pop up in other jurisdictions.

But chances are, it’s just an Aussie quirk. Legal services haven’t taken off, the office isn’t growing, and Australia’s legal market is fiercely competitive. Apart from being the third-largest market globally, Australia is also a lot like the UK, with liberal regulations allowing non-lawyers to invest in law firms. And let’s not forget that the richest publicly listed law firms in the world are based there.

So, is this the beginning of the end for the Big 4’s legal ambitions in Australia? Maybe. But don’t bet on it becoming a global trend—at least not yet.