🗞️ A reduced sentence

Good morning. Overcrowding in Western Australia's prisons has gotten so bad that inmates forced to sleep on mattresses on the floor are being paid up to $10.15 a week to do it.

Judges have started handing down reduced sentences over "significant and inhumane" conditions.

Up to 200 inmates were sleeping on the floor this year despite triple-bunking in more than 250 cells, driven by a 37% jump in the prison population since 2023 with no matching increase in cells or staff.

All the headlines and more below...

JETSTAR CUTS ECONOMY CARRY-ON FROM TWO ITEMS TO ONE, CHARGES $25 MINIMUM FOR OVERHEAD BIN

Economy fares currently include one main item for overhead storage and one smaller item under the seat. Under the new system starting in February, a standard fare covers only an underseat item - a backpack, handbag or laptop. Passengers wanting to bring a wheelie bag will pay for "priority carry-on" for $25 and includes early boarding and raises the weight limit to 10kg, up from 7kg for overhead items.

Passengers who don't pay can still use overhead bins, but only after those who paid have boarded and stowed their bags first. Jetstar's lowest fare tier from Wednesday will be restricted to one under-seat bag - a backpack, handbag or laptop bag - with no specified weight limit.

The airline says eliminating hand luggage weighing at the gate will speed up boarding and improve on-time performance. Under the old structure, the cheapest fare included a small personal item and a second bag up to 7kg for the overhead bin. The under-seat bag has no weight cap, but size limits apply based on what fits beneath the seat.

AUSTRALIAN NEWS

• Australian household spending has risen 0.8% in June and 6% in FY26, outpacing population growth and surprising expectations, as economists say this gives the RBA ammunition for another rate hike. LINK

• The federal government is considering ending an age-based superannuation exemption that has denied about 530,000 workers under 18 roughly $411M a year in employer contributions. LINK

• Costs for Australia’s 2.7 million small businesses have risen 24.6% from March 2020 to March 2024 and are projected to reach 27.1% by year-end. LINK

• ASIC is concerned as the number of publicly listed companies has been declining while private markets expand. LINK

• Australian home prices have fallen 0.7% in July to an average $928,421, the sharpest monthly decline since December 2022, as rising interest rates and Treasurer Jim Chalmers’ tax overhaul accelerate a housing correction. LINK

• A parliamentary committee has called senior Macquarie and Westpac leaders to appear next week as it probes whether KPMG leveraged conflicted relationships to secure audit work. LINK

• NAB has sharply downgraded its forecasts as it now expects Sydney and Melbourne dwelling values to fall 10% and national capital city prices to drop about 5% over 2026. LINK

1 IN 3 AUSTRALIAN STUDENTS FAIL TO MEET NAPLAN BENCHMARKS AS READING AND WRITING SCORES DROP

Reading and writing scores have dropped across almost every year level in the 2025 Naplan tests. 33% of students - roughly 1.1 million children - fell below the national minimum standard across all domains tested.

Year 3 reading scores fell for the second consecutive year. Writing declined in Years 3, 5 and 7. Grammar and spelling dropped in Year 5. Only numeracy improved: maths scores rose in Years 3, 5 and 7, though Year 9 numeracy also fell.

The tests, sat by around 1.3 million students nationally, assess literacy and numeracy against a minimum standard designed to reflect the baseline skills needed to progress through school. The proportion of students below benchmark has held steady at roughly 1 in 3 for several years.

Education Minister Jason Clare described the results as evidence of "real challenges" in the system but pointed to the numeracy gains as a sign that targeted intervention can reverse decline.

COMPANY NEWS

• Qantas is in early talks with Accenture on Project iQ to potentially offshore up to 1,000 back-office roles to India as it accelerates artificial intelligence use. LINK

• Canva has become the world’s second most-visited AI platform after ChatGPT, as a OneLittleWeb report shows it attracted 10.5 billion visits versus ChatGPT’s 64.7 billion. LINK

• Herron Todd White is cutting a net 40 roles as it consolidates operations into a new SA service hub, cutting 100 jobs while creating 60 Adelaide and 60 Manila roles. LINK

• Barbeques Galore has been rescued from collapse through a sale to Victorian wholesaler Acom International, as all 62 company-owned stores close and about 500 jobs remain uncertain. LINK

• Telegram said Apple briefly removed the messaging app from the App Store globally after a user shared child sexual abuse material, while a similar suspension occurred in 2018. LINK

• Mattel missed expectations for its second-quarter profit, as higher costs and weaker demand for traditional toys hit results. LINK

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CHART OF THE DAY

ONE MORE SCROLL

Editor’s Pick: OpenAI CEO Sam Altman has sparked backlash after promoting ChatGPT as a parenting aid for creating personalised kids’ podcasts, as many critics warn AI risks dehumanising family life.

Draft Pick: Australian swimmer Isaac Cooper has been removed from the Dolphins’ athlete leadership group.

Odd Pick: Loneliness harms health more than isolation.

TRIVIA

Guess the price of this 6 bedroom, 5 bathroom, 4 carpark, 1,065 square metre house in Balgowlah, Sydney.

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ANSWER

$17.5 million

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