EY cuts staff, hires grads, and boosts pay

AI advice led to hopeless case

Mecca under ASIC probe

A Sydney man relied on ChatGPT to file an unfair dismissal claim 919 days late. The Fair Work Commission called the application “hopeless” and a waste of resources, finding the AI-generated advice had no legal basis. Deputy President Tony Slevin said the case was a cautionary tale: AI is no substitute for actual legal advice: The Australian

Slater & Gordon chair James MacKenzie has broken his silence on the firm’s email crisis, admitting they should’ve acted faster when a fake message leaked salary data and personal attacks to 900 staff. The fallout included police referrals, lawsuits, and a convicted fraudster in payroll. MacKenzie says the firm has now “moved on”: AFR

EY Australia has boosted average partner pay to $795k, even as revenue fell 3% to $2.4bn in FY25. Consulting dropped 10%, but tax and audit helped soften the blow. The firm cut 500 staff and 30 partners, yet hired 600 grads with hopes that they’ll bring AI skills: AFR

Emails, texts and social media blasts are now standard weapons in takeover bids, accelerated by 2023 reforms giving bidders access to shareholder email addresses. Around two-thirds of investors now provide emails, making them the dominant channel outside ASX releases. There are no specific rules on these communications - no obligation to copy rivals, file with ASIC/ASX, or send to all shareholders. The only guardrail is the ban on misleading or deceptive conduct. In Pact Group Holdings 01, ASIC argued that emails and texts risk being unbalanced or incomplete, and the Panel agreed bidders should exercise considerable care when using these channels: HSF Kramer

The Full Federal Court has upheld penalties of $57.5m against BlueScope and $500k against its former GM Jason Ellis for attempted cartel conduct in the flat steel market. Between 2013–14, BlueScope tried to induce eight distributors and overseas supplier Yieh Phui to fix prices using its data as a benchmark. The Court confirmed that even attempted collusion—without any deal struck—attracts major sanctions. ACCC Acting Chair Catriona Lowe said the case shows attempted cartels can cause “significant damage across the economy” and remain an enforcement priority. The ruling leaves intact the highest cartel penalty ever imposed in Australia: ACCC

ASIC has urged independent experts to lift disclosure standards in IERs after flagging recurring gaps. Concerns include failure to disclose material assumptions, inadequate explanation of why certain valuation methods were chosen, and unclear reasoning for valuation ranges. ASIC reminded experts of RG 111, which requires transparency on assumptions, methodology and figures. It stressed that IERs play a gatekeeper role in transactions and must give investors the information needed to make informed decisions. ASIC said it will keep reviewing reports and may take action, citing recent interventions against PKF Melbourne Corporate and AP Lloyds: ASIC

China and India call truce. Xi Jinping told Narendra Modi the two nations should be “partners, not rivals” as they met in Tianjin for the SCO summit, Modi’s first China trip in seven years. Modi hailed an “atmosphere of peace and stability” and said flights between India and China suspended since the deadly 2020 Himalayan border clashes would resume: BBC

Taylor + Travis = day off. Taylor Swift and Travis Kelce’s engagement hit Kansas City so hard that tax prep giant H&R Block told staff to clock off early. The company’s chief people officer said she knew “focus is in short supply” while everyone debated playlists, dresses and whether the reception will be held in KC or a castle in Europe: Business Insider

A government-backed trial has cleared the way for Labor’s Dec 10 ban on under-16s using social media, finding age-checking tech is “effective and practical”. Platforms like TikTok, Instagram and YouTube must block underage accounts or face fines up to $49.5m. PM Albanese will even pitch the world-first ban at the UN General Assembly next month: The Australian

Austal: is bracing for FIRB’s verdict on Hanwha’s 19.99% stake, with a decision expected this week. The South Korean defence giant already holds 9.9% directly, the rest via swaps, and is tipped to push for a board seat if cleared. With Canberra weighing national security implications, the outcome could set the tone for future M&A under Labor, like Santos-ADNOC’s deal: AFR

Crimson Education: is gearing up for an Aussie roadshow with Barrenjoey, pitching itself as a “mini-IDP Education”. Founded by Jamie Beaton at 17, the Kiwi group helps students crack Harvard, Oxford and other elite unis, and pulled in US$100m revenue in 2023: AFR

Australian Institute of Business: has been snapped up by TDR Capital’s BPP Holdings, one of Europe’s biggest private education players, in a deal steered by MinterEllison. With 2,000 students and 20,000 alumni, AIB is a major online MBA provider. BPP plans to turbocharge AIB’s digital delivery and push international expansion: MinterEllison

WA’s EPA has signed off on POSCO’s Pilbara project, allowing it to use greenhouse gas methane instead of hydrogen to make “green” iron. The regulator says it’ll cut global emissions versus shipping ore to Asia’s coal-fired furnaces, even if it lifts Australia’s footprint. POSCO plans to transition to hydrogen over time, but for now, gas gets the green tick: AFR

MinRes has logged its second truck crash in 8 days on the $230m Onslow haul road, a route it must prove can hit 35m tonnes a year to unlock a $200m payout from Morgan Stanley. At the same time, Chris Ellison’s crew faces heat over a takeover of his brother’s RDG that wipes $146m in loans and leaves minorities empty-handed: The Australian, AFR

Mercer Super may boast $80bn AUM, 1m members and top-quartile returns, but ASIC and APRA are circling over its risk culture. An explosive email told execs to keep ASIC litigation discussions out of official minutes, raising red flags on transparency. With regulators already fining Mercer, its six-year risk overhaul looks far from finished: AFR

Coinbase and OKX are chasing Australia’s $3.9tn super funds. The exchanges are rolling out products aimed at steering Australia’s supers into cryptocurrencies, starting with self-managed super funds that already hold a quarter of the nation’s retirement pool. Coinbase has 500 investors waitlisted for its SMSF service, while OKX’s June launch has already exceeded demand expectations: Bloomberg

Mecca Brands has been pulled into an ASIC investigation after disclosures revealed a hidden parent company, RTCH, sitting atop the $1.3bn beauty empire. While Mecca Brands booked just $22m profit in 2024, RTCH reported $111m and paid $200m in dividends over three years. ASIC is cracking down on large privates dodging financial reporting rules: The Australian

Mirvac has locked in Mitsubishi Estate Co to co-develop its $2.3bn Harbourside project at Darling Harbour, adding to a string of Japanese partnerships that already include Mitsui Fudosan at 55 Pitt St. With $800m in pre-sales banked and leasing interest strong, Aussie developers are leaning on Japanese capital to bankroll mega-projects: The Australian

Meta is under fire after it built chatbots impersonating Taylor Swift, Scarlett Johansson, Anne Hathaway and Selena Gomez, without their permission. Some bots flirted, made sexual advances and even generated intimate images. Meta’s already deleted a batch of the bots: Reuters

NextDC shares rocketed 16.5% after unveiling a $15bn Sydney data centre plan funded via private capital, not shareholders. The surge squeezed short sellers, who’d built positions up to 8%. With AI demand driving contracts past its current footprint, NextDC’s new $3.5bn debt facility and JV push reassured investors it won’t need another equity raise: AFR