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👋 G’day

Today’s brief:

  • Lawyers take pay cuts for remote work

  • UK judge predicts AI-run disputes

  • KPMG will cut 5% of workforce

Here’s your latest, PB #{{join_number}} 👇

WORD ON THE STREET

Remote work wins

New Paragon Legal research says lawyers would rather work from the couch than chase a pay rise. 61% of US legal pros would cop a pay cut for full remote work, and 48% would give up 10% of their salary for it. Meanwhile, 16% have walked from a job over return-to-office demands in the past year: Point Blank

  • KPMG Australia is axing 5% of its workforce, 27 partners and 360 staff, and slicing average partner pay by 13% to $645k. Consulting revenue dropped 17% to $632m as the data misuse scandal bites, though audit grew 11% to $405m. About 75 partners have already walked since March: AFR

  • Top UK judge Sir Geoffrey Vos reckons litigants will eventually pick a machine over a human, tipping AI to resolve disputes "in minutes... at little or no cost." He's eyeing personal injury and share valuation disputes first, pointing to eBay, which settles 60 million user disputes a year with 90% needing zero human input: Legal Cheek

PRACTICE POINTS

AI case backfires

⚖️ Employment: The Fair Work Commission has made a "very rare" decision to slap an applicant with a costs order after he leant too heavily on AI. In Khan v Aldi, Deputy President Easton found Sadnan Khan built his unfair dismissal case around AI-generated arguments that focused on the wrong date, missing the minimum six-month employment period by just three days. The Commission warned him repeatedly that his case would fail and costs could follow, but Khan kept sending AI-drafted responses instead of simply reading the emails himself. Easton ordered Khan to pay $1,230, Aldi's capped costs, calling the losses "utterly preventable": Lawyerly, FWC

⚖️ Privilege: Two recent cases show how easily companies can lose legal professional privilege over third-party reports. In Korea Midland Power v ACIRL, ALS disclosed just two findings from a McGrathNicol report in an ASX announcement and lost privilege over the entire report, with the Court ordering production bar a few paragraphs. In ASIC v Macleod, Noumi kept its privilege intact after sharing a PwC report with ASIC under a voluntary disclosure agreement. Structure the engagement properly, keep internal documents consistent, and if you have to say something publicly, stick to confirming an investigation exists, not what it found: Clayton Utz

⚖️ Corporate: ASIC is giving companies a heads-up on new director ID requirements landing 1 July 2027. Under the Treasury Laws Amendment (Business Registries Stabilisation and Uplift) Act 2026, companies must start reporting director identification numbers to ASIC through annual reviews and when notifying changes to director details. It's part of a broader push to tighten authentication on the business registers and cut down fraud and identity misuse. Companies and directors should check company details are up to date, confirm all directors are correctly recorded, and cross-check director IDs against ABRS records well before the deadline hits: ASIC

TOGETHER WITH ATTO

Turns out the humans behind legal AI have a bar tab.

Point Blank's networking night for Sydney's legal and legal tech crowd, sponsored by Atto. Drinks and nibbles on us!

Tuesday, 1 September | 6:00PM AEST | Sydney CBD

TALKING POINTS

Data centre backlash

Did you hear…

AEMO reckons data centre power use will nearly sevenfold by 2036, going from 3% to 13% of all grid demand, right as coal plants shut down. Trouble is, a new Capital Brief/DemosAU poll shows only 23% of Aussies actually want one nearby, and 68% reckon it'll spike their bills: Bloomberg, Capital Brief

Also…

Trump's family is about to have its own bank. World Liberty Financial, backed by his sons, just won conditional approval from the OCC to open one, part of a deregulation push that's seen 22 new bank charters handed out in 19 months, more than the past five years combined: Bloomberg

DEAL ROOM

Buyout talks

🎬 EVT, owner of Event Cinemas and Rydges Hotels, has hired Rothschild to review a break up or sale of the $2.5bn group. Blackstone has reportedly spent six months weighing a full buyout, though it's unclear if it's still keen: The Australian

🎰 SkyCity is in early talks with Oaktree Capital over a possible buyout, though no bid's landed yet. SkyCity's share price has more than halved amid debt troubles and Austrac fines, while Oaktree has a track record of lowball tilts at Star and Crown: The Australian

SECTOR SNAPSHOT

Exec allegations

DIGGERS

🚜 Fortescue is investigating a senior exec after a deleted social media post alleged serious harassment, including entering the woman's home without permission and destroying her partner’s photos. Minter Ellison is running the probe. The exec hasn't been stood down, just moved to remote work while it continues: The Australian

FIN

🏦 Rampart Capital, backed by Zip’s Larry Diamond and Stake’s Matt Leibowitz, lets founders and employees borrow against their private company shares without giving up any equity. It's lent out over $20m in a year, keeping loan-to-value under 20% so a valuation drop doesn't trigger margin calls: Capital Brief

RETAIL + REAL ESTATE

🏠 Endeavour is spending $130m to $160m to refurbish 75 hotels, more than double last year's number, betting the investment will finally turn its underperforming pubs division around. The market wasn't convinced: shares fell 4.7% on the news. Annual profit was also down sharply to $52m from $426m: AFR

TECH + STARTUPS

📱 OpenAI's bid to trademark ChatGPT in Australia has hit a snag. Property giant GPT Group is formally opposing it, arguing the name's too close to its own decades old GPT trademarks. Both sides have now paused the fight for a six-month cooling-off period while they try to negotiate a deal: Capital Brief

P.S.

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