Here’s what you need to know today

• Large Australian Superannuation funds have had a record quarter, seeing $57 billion in member contributions fill their coffers. Of that, $12.8 billion went into the Australian share market, also a record amount. (AFR)
  
  

• AI keeps breaking barriers. The latest update from Anthropic demonstrated AI that can use a computer on its own. Their AI can look at a screen and control the computer by moving a cursor, clicking buttons and typing text. Soon AI won’t just be able to answer our questions but will be able to surf the web for us as well. (The Verge)
  
  

• Earnings season continues in the US. Notable news from Wall Street included General Motors reporting profit rising 16% as sales of electric vehicles grew 60%. (CNBC) The defence giants RTX (formerly Raytheon) and Lockheed Martin both lifted forecasts for 2024. (Reuters | Reuters) Software giant SAP is riding the AI wave to higher revenue and profit forecasts. (Barron’s) And finally, tobacco giant Phillip Morris International reported record revenue and profit. (Reuters)
  
  

• ASIC has sued QBE after the insurance giant promised discounts to more than 500,000 customers that the regulator claims were never delivered. ASIC claim that the practice of promising discounts and not delivering on them spanned more than 5 years from July 2017 to September 2022. QBE self-reported the practice in 2022, has apologised for what it has called “the inconsistencies” and has said it will continue working with ASIC. (ABC)
  
  

• CSL has been forced to pull studies or trials on three therapies, after the US Food and Drug Administration raised concerns about its manufacturing process for its new antibody Garadacimab. CSL didn’t seem overly concerned, predicting it would resolve the issue and still release the product in the first half of next year, and investors didn’t seem too concerned either, with shares down just 1% on Wednesday. (AFR)
  
  

• Coles and Woolworths have fronted the Federal Court as they defend the ACCC’s allegation that they used deceptive price tactics on hundreds of grocery items. As part of their defence, the supermarkets blamed their suppliers for “possibly every case” of price increases. (AFR)
  
  

• Did the NSW Government ignore legal advice and charge $144 million in unlawful fees on Service NSW transactions? That is what the NSW Ombudsman has been asked to investigate after the current NSW Minister for Finance Courtney Houssos asked the watchdog to review 92 million Service NSW transactions. (ABC)

What the…?

Record player contracts in professional sports has sparked a whole new area of insurance. Teams can now get insurance on their players contracts, that pay out if the player gets injured or, in some instances, is just underperforming.

With record contracts being signed all major sports - topped by Shohei Ohtani’s $700m for 10 years in baseball and Cristiano Ronaldo’s $536m for 3 years in football - it makes sense that teams are being given a way to hedge their risk. (Sports Business Journal)

Investing is a lifelong journey

Here’s what you can learn today.

Financial advice just got cheaper. But there’s a catch

The cost of financial advice is one of the biggest hurdles for everyday Australians trying to get on top of their finances. The upfront cost for a statement of advice will generally cost at least $5,000 and then the median ongoing annual advice fee in 2023 was $3,960 (up 58% in 5 years according to Adviser Ratings).

Why? The regulatory burden and costs on advisers have been increasing over the past 5 years and the number of advisers in Australia has been declining, from almost 28,000 in 2018 to now fewer than 16,000.

A recent ruling from the Tax Office doesn’t change any of these structural factors driving the cost of advice ever-higher. But it does make it ever-so-slightly more accessible.

Traditionally, ongoing advice fees have been tax-deductible. The generally-higher, upfront advice fees were not. However a recent ruling by the ATO found that some portion of the upfront cost may be tax deductible, if it relates to the generation of income. As with so many things in tax, it is never straight-forward.

Read the AFR’s analysis (link below) to understand how this new rule works. And if you’re interested in speaking to an adviser, fill out the form on our website and we’ll put you in touch with one of our hand-picked advisers for a free, no-obligation initial meeting. Remember to ask them, “How much of this advice will be tax-deductible?”

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