🗞️ Poverty premium

Good morning. Microsoft's new commercial Microsoft 365 pricing took effect July 1, raising list prices across Enterprise, Business, Frontline and Government plans.

Increases will range from about 5% on E5 up to 43% on some Frontline tiers.

Microsoft says the hikes reflect added AI, security, and IT management features bundled into the suite.

All the headlines and more below...

INSURERS CHARGING UP TO 11% MORE IF YOU CAN'T PAY YEARLY UPFRONT

12 of Australia's 20 largest insurers are adding a surcharge to monthly or quarterly insurance payments. The extra cost ranges from 7% to 11% on top of the base premium.

Of those 12, only 4 clearly disclosed the cost difference. 6 gave no clear disclosure at all. Renewal notices used vague phrasing like "may be cheaper" or "may apply" without stating the actual dollar difference.

Financial Counselling Australia and the Financial Rights Legal Centre are calling it a "poverty premium." They're pushing for mandatory clear disclosure at renewal and removal of instalment penalties. If insurers don't comply, they've flagged further action.

AUSTRALIAN NEWS

• Australia’s latest housing downturn has seen prices fall 0.4% in June after 0.3% in May, yet experts say affordability would require decades of similar declines. LINK

• A parliamentary committee has found organised crime syndicates are rorting the $50B-a-year NDIS by laundering money and bribing participants, costing the scheme $3.7B annually. LINK

• A record 72 new ETFs have listed on the ASX in FY26 as Australia’s ETF market drew over US$50B of inflows and now counts 458 products. LINK

AUSTRALIA IS 91,000 HOMES SHORT OF ITS HOUSING TARGET AND FALLING FURTHER BEHIND

Building approvals dropped 1.1% in May, the third straight monthly fall. Apartment and townhouse approvals collapsed 10.4%. Australia is on track to build 204,000 new homes this year against a National Housing Accord target of 240,000.

The Accord runs until June 2029 with a goal of 1.2M homes. At the current pace, it won't get close. Queensland, Victoria and Western Australia drove the falls. NSW posted its fourth straight monthly gain but couldn't offset the carnage. Once demolitions and failed projects are factored in, the gap widens.

May's figures are the first read on how the market responded to the budget's housing tax changes, indexed capital gains replacing the 50% discount, negative gearing restricted to new builds only. Master Builders called for workforce fixes, less red tape and more infrastructure. The Coalition has promised to scrap the changes if it wins.

Australia is building fewer homes than it did in the mid-2010s, when rates were lower and settings were more favourable.

COMPANY NEWS

• OpenAI has reportedly discussed giving the US government a 5% stake and suggested similar stakes from other US AI firms as scrutiny over AI risks and public benefit intensifies. LINK

• KPMG has named former SBS boss Michael Ebeid as its new chair to rebuild leadership after a whistleblower scandal, while an employee threat triggered a lockdown at its Sydney HQ. LINK

• Tabcorp secured new betting terminal and racing channel deals with 3,300 pubs and clubs under a revamped commission-based retail model, while key operators remain unsigned and some venues voice financial concerns. LINK

• Echo Law and Piper Alderman have begun issuing court-ordered notices after a US$105M class action settlement against Qantas, with US$68M for customers and US$37M for fees. LINK

• Wesfarmers' revamped low-cost Officeworks tech strategy has intensified competition for JB Hi-Fi, with UBS expecting JBH's FY26 result on 17 August to show negative sales impacts. LINK

• Betts has entered voluntary administration and will close 20 of its 35 stores as it shifts to an online-only model amid weak retail conditions and falling foot traffic. LINK

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CHART OF THE DAY

Financial assistance for youth in Australia

ONE MORE SCROLL

Editor’s Pick: Why Structural Warranty Insurance matters for property owners.

Draft Pick: Jaylen Brown traded from Celtics to 76ers for Paul George.

Doctor’s Pick: A surprising brain discovery is forcing scientists to rethink movement disorders.

TRIVIA

Rank the five singers in terms of their monthly listeners:

Justin Bieber, Celine Dion, Olivia Rodrigo, Olivia Dean & Bruno Mars

Answers below

OUR SOCIALS

ANSWERS

Bruno Mars ~133.6 Million
Justin Bieber ~127.8 Million
Olivia Rodrigo ~69.7 Million
Olivia Dean ~53.5 Million
Celine Dion ~18.3 Million

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