Australia’s Accountant Liability Cap Faces a Legal Challenge

Australia’s professional standards authority acted “irrationally” when it approved a cap on liability claims against accountants, a former KPMG partner alleges in a court case that could have significant consequences for the Big Four firms.

Brendan Lyon’s lawsuit challenges the legality of the system that limits damages claims against members of Chartered Accountants Australia and New Zealand, including their “unqualified consultants delivering unregulated advisory work,” he said in an email. The New South Wales Supreme Court said Monday that it would hold a hearing June 1 to set a trial date.

CAANZ’s five-year Professional Standards Scheme was approved in 2025 ...