Friend,

Canberra’s Productivity Roundtable is GREAT policy theatre, don't you think? While we're all watching Chalmer's show we've almost completely forgotten about the two big threats to our future as a nation and a species.

Threat 1 is that our largest foreign direct investor (the US) has gone so b@tsh1t crazy that our economic future is now both uncertain and determined by someone most Australians detest.

Threat 2 is climate change. Or maybe AI... or maybe AI is the answer to climate change....

Bravo Chalmers and Albo. Cynicism aside, here's why the productivity roundtable matters.

1. First of all it's a great case study in "controlling the narrative" and "controlling what you can" (remember the Serenity Prayer?). Notice Trump angst has faded, and the nation's business community is now obsessed with things that we may be able to control. Genius!

2. Secondly, Canberra is setting the benchmark for what counts as “productive” business and economic activity, regulatory settings and use of capital. That affects everyone from super funds to social housing, insurance to banking, and AI to offshore investors. The Federal Government has our "eyes up", and on the medium to long term horizon. Nicely done!

3. Third, it may prevent generational class war. "Productivity" reform could give governments air cover to fix very broken settings. Take the evidence that retirees and many pre-retirees are wealthier than ever, yet our tax and transfer system still supports them heavily. More on here in an AFR analysis. Is that fair, sustainable or productive?

In case you missed it, see below last week's short but sexy announcement of CBA’s multi-year OpenAI deal quoting CEOs Matt Comyn and Sam Altman.

ANNOUNCEMENT: If you've made it this far you deserve a reward! After months of testing we are launching our own AI tool via two pilot programs. We're recruiting a small group of beta users. You're invited to apply. 

The first pilot is a "CEO or spokesperson stress test". Use it to stress test an investor presentation, adviser PD day talk, conference panel comments or staff town hall script.

The second pilot is an advisory offer translating media shifts and complex policy signals (like today’s Roundtable and the tax equity debate) into a fast start communication plan. Use it for a single product launch, a new spokesperson, to reposition an existing brand or generate a potential thought leadership program.

Both are run over 90 minutes by myself or another senior person using our (working title!) PRX (PR reasoning engine). Both pilots have careful data governance and confidentiality measures in place. Neither of these replace what your team and I do in the course of our normal work where we have significant context and deep relationships. 

Reply with your EoI. I'm only offering eight spots. The goal is learning, so early access is limited.

On our radar

Policy and regulatory developments that may shape your risk or return

ASIC reviews RG 97: Stamp Duty rules under the microscope

ASIC is reviewing RG 97 disclosure rules, which force super funds to include stamp duty costs on residential property but not other assets. With findings due in November, the outcome could unlock billions for housing investment if rules are eased.

Qantas and NAB face costly reckonings on staff treatment

Qantas has been hit with a record $90 million penalty for mishandling staff sackings during the pandemic, the largest fine ever imposed on an Australian company. Regulators framed it as a turning point for corporate accountability. While NAB disclosed a $130 million charge for historic underpayments affecting staff, even as it delivered $1.77 billion in quarterly profit.

ASIC sues Mercer Super

ASIC has taken Federal Court action against Mercer Super, alleging systemic failures in breach reporting, including mishandling member insurance and personal data.

This week's market movers

Big plays, bold bets, and (occasional) unconfirmed speculation

Accenture buys CyberCX for $1 billion

Accenture is set to acquire CyberCX in a deal worth over $1 billion, marking a major expansion of its cybersecurity services in Australia. CyberCX, led by former Optus Business boss John Paitaridis and ex-national cyber chief Alastair MacGibbon, advises banks, government and critical infrastructure.

CBA doubling down on AI revolution amid record profits

After posting a profit of over $10 billion, CBA committed $2.3 billion to technology, including a new AI partnership with OpenAI to boost fraud detection and productivity. Here's the full text.

IAG profit jumps while customers face more price rises

Insurance Australia Group posted a $1.35 billion profit, up more than 50% on last year, largely due to disaster costs coming in almost $200m below forecasts. IAG signalled more premium hikes for NRMA and RACV customers and is pushing ahead with RACQ and RAC WA acquisitions, plus new AI efficiencies. OUCH! Given CPI ran up thanks to insurance premiums rising this might mean some unfavourable attention from regulators and government for IAG. Let's see.

Claire provides operational support for our team. Possibly the bravest BlueChipper, she agreed last year to become my assistant and thus bring order to my inbox and work life! Yes, it's been tricky but it's working. Claire has experience in digital marketing, small business operations and community service. That helps us identify "b8llsh1t" that's not directly helping clients, and reduce internal busy work. When not working with us, she's mothering, pursuing artistic ideas in her home in the Northern Rivers or volunteering with the SES as part of their field and incident management and disaster recovery efforts.

Best,

Carden | she/her (here’s why that matters @work) 

WINNER: PRIA LEADER OF THE YEAR 2022

FINALIST: PRIA LEADER OF THE YEAR 2023

FINALIST: B&T LEADER OF THE YEAR 2023