Slater + Gordon's fraudster

👋 G’day

Today’s brief:

• A fraudster has been linked to the Slater + Gordon scandal.

• Uber has been likened to a dating app in its Court fight over payroll tax.

• EY slashes UK 30 partners amid demand slump.

Stay in the know with the latest 👇

PRACTICE POINTS

Uber’s court battle

• Uber is back in court, arguing that it's merely a "payment collection agent", as NSW Revenue fights to overturn the NSW Supreme Court decision that Uber is not subject to payroll tax. Court of Appeal judges have questioned Uber's argument that the contract exists between drivers and riders. Judge Kirk likens it to a dating app provider: “here’s who you’re going on a date with, you’re going to have this course for this much and it will end at 10:35pm. It’s highly structured. It’s not just generating the lead, it governs the entire relationship”. The case could set a major gig economy precedent, shaping tax liabilities for platforms nationwide: Capital Brief

• Looks like the Albanese Government isn’t conforming to Trump’s agenda, opting to pass a Code of Practice on Sexual and Gender-based Harassment. The Government says the code provides practical guidance to employers on protecting vulnerable groups like women, young workers, LGBTQIA+, and CALDs communities. Codes of practice are admissible in court proceedings under WHS laws and courts may rely on the code in determining what is reasonably practicable in the circumstances.

• From April, telecommunications providers must comply with new security and risk management rules under the SoCI Act, including establishing and maintaining a security and risk management program. The Enhancing Consumer Safeguards Bill is also in the works and if passed, it would require providers to:

  • register with the Australian Communications and Media Authority

  • comply with ACMA industry codes or risk potential penalties of up to $10m for breaches: Allens

WORD ON THE STREET

Convicted fraudster

• There is an alleged named suspect linked to the Slater + Gordon scandal. The law firm’s payroll manager, a convicted fraudster with a history of forgery and deceit, appears on the metadata to the spreadsheet attached to the rogue email that was sent to all staff. The fraudster served two years for stealing over $300k but denies involvement in a rogue email crisis at the firm, claiming corruption and cover-ups instead: AFR

• KWM has topped the 2024 Syndicated Loans League Tables as #1 legal advisor for APAC borrower loans, advising on A$40.78bn in loans and securing a 13.69% market share. Allens came second, followed by A&O Shearman. Check out the full rankings here.

• The Government has appointed Justices Lisa Hespe, Geoffrey Kennett, Melissa Perry, and Thomas Thawley for 2-year terms. While the Victorian Government has appointed Peter Kidd SC, Chief Judge of the County Court to the Court of Appeal.

• Half of Australian law firms pay juniors below the national average of $75k despite top seniors cashing in big. McInnes Wilson offers the lowest at $42k, while Kennedys maxes out at $469k for their top earners: Lawyers Weekly

TALKING POINTS

Workers face tax creep

• Tax creep is coming for Aussie workers. Former Productivity Commission boss says the government should lift tax brackets annually to stop workers quietly sliding into higher rates. Without reform, the average worker will hit the 37% tax bracket by 2031, pushing tax burdens to record highs: AFR

• Dutton eyes referendum on deporting criminals. Peter Dutton is considering a constitutional change to let ministers cancel citizenship of dual nationals convicted of serious crimes. The move aims to override a 2022 High Court ruling that found ministerial power to strip citizenship was unconstitutional, as it amounted to “punishment in the sense of retribution”, a role reserved for judges: SMH

• Clive Palmer goes all in on YouTube ads. Palmer’s party, Trumpet of Patriots has outspent Labor and the Coalition combined, dropping $509k in 10 days on YouTube to push his "Make Australia Great Again" campaign. New laws from Labor and the Coalition will cap spending at $800k per candidate from 2026, but Palmer is threatening a High Court challenge to keep his cash splash alive: AFR

TREASURY

DEAL ROOM

Ramelius’ $2.4bn gold play

• Ramelius Resources locks in $2.4bn Spartan takeover, offering $1.78 per share in cash and stock—a 11.3% premium. The deal, backed by Spartan’s board and major shareholders, creates a $4.2bn gold producer, second only to Northern Star and Evolution Mining. With 2.6Moz in reserves, Ramelius aims to hit 500koz annual production by 2029-30. Allison Partners advises Ramelius, while HSF acts for Spartan: The Australian.

• The largest non-bank consumer lender across Aus and NZ, Latitude explores exit options as KKR, Deutsche Bank, and Varde Partners look to offload their 62.6% stake. Barrenjoey is advising, with delisting or a major sale on the table. Meanwhile, Shinsei Bank, which has an alliance with Latitude to explore growth opportunities in Asia has crept up to 19.3% ownership: AFR

• PepsiCo has acquired Poppi, a healthy soda brand, for US$1.95bn. The move comes as consumer demand for health and wellness rises, with Poppi’s prebiotic and apple cider vinegar drinks offering a healthier alternative to sugary sodas. Coca-Cola recently launched its own prebiotic line in response: Reuters

• AstraZeneca strikes US$1bn deal for EsoBiotec, doubling down on cell therapies for cancer. These treatments modify a patient’s own cells to fight disease. The $425m upfront deal includes $575m in milestone payments with an expected completion in Q2 2025: Financial Times

SECTOR SPECIFIC

EY slashes partners

🚜 DIGGERS

• Exxon and Woodside are injecting $350m into a five-well drilling campaign in the Bass Strait, delaying an east coast gas shortfall and keeping the Longford plant open at least 2 years longer. With AEMO warning of shortages by 2028, this move eases pressure on manufacturers and energy prices: The Australian

• Transgrid plans to invest up to $700m in five synchronous condensers to stabilise NSW’s grid as coal power phases out. CEO Brett Redman says they require underwriting support for $700m in financing, but need government backing to avoid a credit rating hit: AFR

🏦 FIN

• Westpac has lured NAB’s CFO Nathan Goonan as CEO Anthony Miller shakes up his leadership team. Goonan joins a growing list of Goldman Sachs alumni at the bank. Meanwhile, NAB’s business banking boss Rachel Slade has also exited as the bank scrambles to fill key roles: AFR

• EY UK is cutting 30 partners, mostly in consulting, as demand for professional services slumps post-pandemic. UK boss Anna Anthony told partners the move aims to protect profits, marking one of EY’s largest partner redundancies in decades.

🏡 RETAIL & REAL ESTATE

• Dexus Wholesale Airport Fund (DWAF) is raising capital to bid for a 9.7% stake in Melbourne and Launceston airports, after buying 1% for $130m in 2023. If successful, the bid would allow Dexus’ own infrastructure fund DDIT and other sellers to cash out their holdings, giving DDIT much-needed liquidity as it battles $1bn in redemption requests: AFR

• Property investors are racing to build hyperscale data centres in Australia to meet the growing demands of AI tech. Partners Group recently acquired GreenSquare DC and plans to invest $1.2bn in expanding its data centre footprint across key cities. As AI demand surges, major players like Amazon, Microsoft, and Meta are investing heavily in digital infrastructure, driving Australia’s data centre market to grow from $23bn to $40bn by 2028: RealCommercial

📱 TECH

• BMW is teaming up with Huawei, integrating its HiCar mobile app into China-produced models from 2026 and deepening BMW’s collaboration with Chinese tech players: Reuters

• Sydney-based crypto and software investor King River Capital is raising $150m for a new fund focused on AI start-ups, backed by Future Super, the Fairfax and Smorgon families, and David Gonski. The fund has already secured $80m on its books, aiming to invest in AI companies in Australia and the US, with four investments already made, including Safewill and Relevance AI: AFR

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