The Albanese government has yielded to Greens demands, announcing a ban on self-managed superannuation funds (SMSFs) borrowing to acquire residential properties. This move aims to prevent SMSFs from circumventing capital gains tax increases. This policy shift comes amidst significant corporate leadership changes, with KPMG chairman Martin Sheppard and several senior audit partners resigning from the professional services firm. This exodus follows a challenging parliamentary hearing, which scrutinised individuals connected to a growing scandal involving the misuse of confidential client information.
In market activity, the Australian Securities Exchange (ASX) saw shares steady near midday AEST, with financials offsetting weaker performances in mining and technology sectors. However, individual company movements were more volatile. Fuel and energy company Viva Energy experienced a dive following a prolonged unit outage, while software giant WiseTech Global saw its shares rebound. WiseTech’s billionaire chairman, Richard White, unequivocally denied claims of sex-for-visa allegations currently under Australian Federal Police investigation, distancing the company from the probe.
Further corporate news saw global manufacturer Reliance Worldwide announce job cuts and the closure of some Melbourne sites as part of its operational adjustments. Internationally, technology firm SpaceX experienced a notable plunge, with its shares falling 16 per cent on Monday night. This decline is attributed to mounting doubts surrounding the artificial intelligence trade, with the looming prospect of rising interest rates further clouding investor sentiment. These developments highlight a dynamic period for Australian companies and broader global markets.
