AI bonuses hit firms

PRACTICE POINTS

Costs for solicitors, not partners

• Costs order for in-house lawyer, but not for the partner. The High Court has confirmed that a law firm acting for itself can recover costs for legal work done by an employee solicitor, but not for work done by a partner of the firm. The Court reiterated Australia’s rejection of the UK’s Chorley exception as held in Bell Lawyers, affirming that only actual legal costs incurred by its employed solicitor can be claimed — not the notional value of a partner’s time. Steward J gave a robust dissent noting that allowing the firm to recover their costs would “make a mockery of what was decided in Bell Lawyers”.

• The Full Federal Court upheld a $1.5m penalty against Ultra Tune, holding Ultra in contempt for failing to implement compliance measures ordered by the Court. Some key takeaways:

  • Being on notice count. The Court upheld contempt, finding Ultra had ample opportunity to understand the consequence of not implementing the compliance measures.

  • Size matters in penalties. The Court pointed to Ultra Tune’s $70m+ annual revenue in rejecting the idea that the fine was “manifestly excessive”.

  • ACCC is watching. The regulatory is actively monitoring compliance with court orders.

• Deadlines for Aussie Share Plan Reports is fast approaching. Employee Share Scheme (ESS) statements must be distributed by 14 July 2025, and the ESS Annual Report must be filed with the ATO by 14 August 2025. Whether you need to comply depends if your ESS deferred taxing point happens during the FY25. What on earth does that mean? Well, typically the ESS deferred taxing point is triggered by the exercise of options, settlement of RSUs, or purchase of shares under an ESPP: Baker Mckenzie

WORD ON THE STREET

£1m AI bonus

• UK firm Shoosmiths puts £1m on the AI table. The firm is dangling a £1m bonus pot for staff if they hit 1 million Copilot prompts this financial year—the first big law firm to tie bonuses to AI use.

• Speaking of foreign law firms, US law firms continue to fold to Trump. Facing pressure from the US Equal Employment Opportunity Commission, White & Case has scrapped its diversity team and removed DEI commitments across global offices. Freshfields has followed suit, removing diversity website pages and rebranding its DEI page with the word “culture” instead of “diversity”: Law Gazette, Law.com

• EY Australia is spared from the global restructure. EY Oceania, which includes the Aussie partnership will not change under a reorganisation of the firm. But the APAC region will be hit hard, likely facing another round of redundancies as the firm collapses 18 regions into 10 “super regions”: AFR

TALKING POINTS

Top tier vs mid tier pay

• A new 2025 pay guide shows salary partners at top-tier firms can earn up to $800k, while mid-tier partners cap out at $550k. Special counsels also see big jumps—$300k vs $250k for experienced special counsels. Prestige pays: Lawyers Weekly

• The tit for tat continues to everyone’s detriment. Trump administration officials confirmed plans for further tariffs on Chinese goods, potentially as high as 104% within hours. Beijing vowed to “fight to the end” in response to Trump earlier levies. Premier Li Qiang assuring China can “fully offset” external shocks: Bloomberg

• S&P rally wiped out as trade war escalates. The ASX200 jumped 2.3% on Tuesday—its biggest single-day gain since 2022, clawing back half of Monday’s $112bn Trump-triggered wipeout. But analysts warn it has all the signs of a dead cat bounce—a short-lived jump in a period of long-term decline: Yahoo Finance, The Australian

• In case you forgot, an election is on. And PM Albanese triumphed over Dutton in the first election debate, with 44% of undecided voters choosing Albanese as the better candidate, compared to 35% for Dutton. 21% remain undecided: ABC

TREASURY

DEAL ROOM

Asbestos backlash

• Aussie Asbestos advocates want guarantees James Hardie won’t walk from its $2.2bn victims’ compensation fund if it shifts its primary listing to the NYSE via its $14bn Azek merger. The company insists it is “committed” to the scheme, but critics fear the change could weaken accountability: AFR

• Quadrant Private Equity has bought out Oaktree’s stake in struggling Kiwi broadcaster Mediaworks, boosting its holding to 100% in a deal tipped to be worth up to $NZ100m. The move tightens Quadrant’s grip on trans-Tasman media, and may force Nine Entertainment to rethink any ambitions for re-entry into New Zealand’s media market: The Australian

• Takeover target Gold Road says its flagship Gruyere mine holds more gold than expected, boosting its case that Gold Fields’ $3.3bn bid undervalues the business. A scoping study hints at 12 more years of mine life and 350k ounces a year, just as gold hits a record $4963/oz. Gold Road’s share price climbed nearly 4.5% yesterday: AFR, The Australian 

SECTOR SPECIFIC

No AI, no hires

🚜 DIGGERS

• Uranium shortage looms. At current pace, global uranium reserves could be tapped out by the 2080s, warns the IAEA. Blame booming demand for nuclear from AI-fuelled data centres and tech giants like Google and Meta. Enough uranium exists—for now—but only if mining investment surges to match the expected 130% spike in nuclear capacity by 2050: Mining.com

• BHP has axed contractors from three QLD coal mines fuelled by falling coal prices and QLD’s 60% tax rate. Several contractors including one owned by an Aboriginal corporation and 200 DNH Solutions workers are hit by the move: The Australian

🏦 FIN

• Customers say they asked for multi-factor authentication weeks before hackers drained accounts. $406k was stolen from one member alone. Experts are calling it a wake-up call. AussieSuper says it’ll repay losses from reserves—but trust is the real currency on the line: ABC News

• Treasurer Jim Chalmers is off the election trail and into the board room. He’s called an urgent meeting with bank CEOs and the RBA Governor to discuss the impact of trade tariffs and market volatility. The meeting will include major banks like CBA, NAB, and ANZ: ABC, Bloomberg

🏡 RETAIL & REAL ESTATE

• Aussie retailers are set to rake it in this Easter, driving $20bn in retail spending—$6.7bn on DIY, $11.1bn on travel and $2.2bn on food and choccie: RetailAsia

• The real estate investment trust (REIT) sector is struggling amid market turmoil, with stocks like Goodman Group and HMC Capital suffering losses. Investors are shifting away from growth-focused property funds, opting for commercial property instead. Despite challenges, experts like Resolution Capital's Andrew Parsons see REITs as a relatively safe investment, with strong capital positions. The once thought safe haven is in shaky territory: The Australian

📱 TECH & START UP

• Shopify CEO Tobi Lütke told staff that no new hires will be made unless teams prove AI can’t do the job. Using AI is now a core expectation, with AI usage questions incorporated in performance reviews. Lütke says opting out isn’t an option—“stagnation is slow-motion failure”: Fortune

• Tariffs are stunting start up funding. With an exacerbated IPO drought caused by Trump’s antics, start ups are feeling the liquidity pressure and seed investors have a delayed exit. That’s put venture capital firms in a challenging fundraising environment with a shrinking the pool of investors. Companies like Pet Circle and SafetyCulture are feeling this first hand, opting to stay private, citing the benefits of remaining out of the public spotlight while uncertain market conditions persist: The Australian

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