Partners purged

👋 G’day

Today’s brief:

• Deloitte Australia cuts 5% of its partners.

• Active Super fined $10.5m for greenwashing, joining Mercer and Vanguard.

• Westpac pays $130m to settle last banking royal commission class action.

Enjoy your coffee ☕️

PRACTICE POINTS

Active Super’s $10.5M lesson

• Active Super has been fined $10.5m for greenwashing. The Federal Court has penalised Active Super for misleading ESG claims, finding it invested in gambling, coal, and Russian entities despite claiming otherwise. It's ASIC's third greenwashing outcome, with Mercer and Vanguard previously hit. ASIC's Sarah Court said ASIC will continue to keep greenwashing in its sights. Court warned that the significant penalty "sends a strong message to companies making sustainable investment claims that those claims need to reflect the true position".

• APRA won’t ease bank capital buffers – APRA chair John Lonsdale has ruled out reducing the amount of capital banks must hold, despite the US and New Zealand moving to loosen protections. Australia implemented Basel III in 2021, requiring banks to hold more capital than other countries. While the US plans to scrap higher capital requirements and NZ considers softening rules on Australian banks, APRA is holding firm, arguing that strong buffers are key to financial stability and investor confidence as global uncertainty grows: AFR

• 4/6 proposed rules for the Cyber Security and Critical Infrastructure package have been registered. Key changes include security standards for smart devices, a $3m turnover threshold for businesses to report ransomware payments, and detailed procedural requirements for Cyber Incident Review Board reviews. These rules will come into effect on 30 May 2025, while the smart device requirements kicked in 4 March 2026.

WORD ON THE STREET

Deloitte’s partner purge

• The partner cuts keep on coming. Deloitte Australia has sacked 5% of its partners—around 55 in total—as new CEO Joanne Gorton reshapes the firm amid a sluggish consulting market. The latest cuts bring Deloitte’s partnership down to 900, nearly 10% smaller than last year. The firm insists it’s just adjusting to market demands, but with consulting revenue dropping 4%, the consulting downturn is hitting hard: The Australian

• HFW has promoted five senior associates in Australia: Charlie Gribble and Ryan Craft in Perth, Sheree Luo and Thomas Lawler in Sydney, and Stephanie Park in Melbourne. This follows recent strategic hires and promotions across the firm’s global network, reflecting HFW’s growth in key sectors like aerospace, commodities, and shipping: Lawyers Weekly

• US firm Kirkland & Ellis are raking it in. They’ve taken home US$8.8bn in revenue (+22%) while profits per equity partner soared 16% to US$9.2m. With a 60% profit margin and a US$5.3bn net income, the firm’s growth strategy—targeting litigation, fund transactions, and global expansion—is clearly paying off: Law.com

• A printing error impacts 12,000 family violence intervention orders in Victoria. Orders missed the critical words: “the court orders that the respondent must not”. Those words fell off the page between November 2025 and March 2026 before the AG’s office realised: Lawyers Weekly

TALKING POINTS

China’s 5-min EV breakthrough

• Electric car charged in 5 minutes? A Chinese carmaker has unveiled a battery and charging system that can charge electric vehicles almost as quickly as refuelling a petrol-fuelled car. In tests, its new EV sedan achieved 470km of range in just 5 minutes, pushing the limits of EV charging speed: SMH

• Fiona Brown, former chief of staff to ex-defence minister Linda Reynolds, has launched Federal Court action alleging a breach of general protections under the Fair Work Act. Brown was a key witness in the infamous defamation trial. The Commonwealth’s legal bill grows, as Lehrmann also appeals his civil rape finding: Lawyerly

• Ceasefire collapses in Gaza. Israel has launched new strikes on Hamas targets, with Palestinian officials reporting at least 200 deaths—the deadliest since the January 19 ceasefire began. And the White House was given advance warning of the attacks. The strikes signal a return to war, as the US and regional powers brace for escalating violence: ABC

• Aussie universities are accusing the Trump administration of “foreign interference” after US-funded researchers were hit with a 36-point questionnaire on ties to China and DEI compliance. Fears are growing that research on defence and vaccines could be cut due to non-compliance with Trump’s anti-DEI agenda, with academics calling it "egregious overreach": AFR

TREASURY

DEAL ROOM

2025’s biggest acquisition

• Google parent Alphabet strikes US$32bn ($50.2bn) deal for cybersecurity startup Wiz, marking 2025’s biggest acquisition. The all-cash takeover includes a $1bn retention bonus for employees and aims to boost Google’s cloud cybersecurity against AWS and Microsoft Azure. Expect FTC scrutiny, as new chair Andrew Ferguson continues his predecessor’s anti-big deal stance: Capital Brief

• Glass Lewis backs activist push on Rio Tinto’s London listing, urging investors to support Palliser Capital’s call for a review of unification in Australia. Palliser argues unifying Rio in Aus would allow shareholders to enjoy a higher valuation. Rio’s board warns of potential tax costs in the billions, but Glass Lewis says the company hasn’t fully engaged with Palliser’s arguments. London shareholders vote April 3, Aussies May 1: AFR

• Brisbane-based IT services firm Veracity Business Solutions seeks a fresh owner with the help of InterFinancial Clairfield. The company, which serves clients like the Queensland government and Experience Gold Coast, is expected to grow to $5m revenue and $1m EBITDA in FY2025. The sale could attract PE firms looking for a bolt-on acquisition in the digital transformation space: AFR

SECTOR SPECIFIC

Star exec breaks down in Court

🚜 DIGGERS

• Another one bites the dust. MinRes’ haul road claims its sixth truck crash, with a 330-tonne road train rolling on its $3bn Onslow project. No injuries, but with $230m already sunk into repairs, investors are sweating over more shipment delays and whether MinRes can stick to its production targets: AFR

• Woodside Energy has inked a binding LNG supply deal with China Resources Gas International, marking the first such agreement between Chinese and Australian companies in years. The deal comes amid China’s reluctance to purchase additional gas from the US due to recently imposed tariffs on American fuel: Bloomberg

🏦 FIN

• HSBC Holdings is exploring the sale of A$13bn in Australian mortgages as part of its global business overhaul. The move is part of a wider restructuring plan, which includes winding down businesses and cutting management ranks. The bank is gauging investor interest in this mortgage portfolio to streamline operations: Bloomberg

• Westpac has agreed to a A$130m settlement over a class action regarding commissions paid to car dealers for hiking interest rates on auto loans between 2013 and 2018. The settlement, subject to court approval, resolves the last litigation related to the Royal Commission for Westpac, following similar settlements by other lenders like ANZ: Reuters

🏡 RETAIL & REAL ESTATE

• Former Star chief legal officer Paula Martin broke down in the witness box, admitting the casino should have severed ties with Suncity, a Macau junket linked to money laundering. Under intense questioning from ASIC, she was shown footage of $100k in cash shifting through Star in a brown paper bag—before conceding money laundering was “a possibility”: AFR

• GPT Group is ramping up its asset management ambitions, taking over management of Sunshine Plaza and Macarthur Square from Lendlease in May. This move aligns with GPT’s strategy to expand in wholesale funds, following its overhaul of its shopping centre fund and new partnerships, including with Perron Group in Perth: The Australian

📱 TECH & STARTUPS

• Atlassian has secured FedRAMP certification, allowing it to sell its software to US federal agencies, which it claims can accelerate productivity. The move comes as Elon plans to slash US$2 trillion in public service costs. CTO Rajeev Rajan calls it a “major milestone” for productivity: The Australian

• Elon Musk’s xAI has acquired Hotshot, a gen AI video startup, in a move that could bring AI-powered video generation to Grok chatbot: Capital Brief