Good morning AusCorp. NAB is cutting up to 2,500 jobs to save money as more customers fall behind on their loans. The other big banks are doing the same, and together they’ve cut more jobs last year than ever before.
Also this week, we look at how big companies decide your pay rise each year, and why a great review doesn’t really change your fate.
Plus about 40% of the jobs Australia can’t find enough workers for are trades or engineering roles. More businesses are falling behind on their tax, and KPMG is now banned from bidding for government work until February 2027.
AUSCORP EMPLOYEE BENEFITS SURVEY 2026
Two jobs can pay the same and feel completely different once you add up the parental leave, the super, the bonus, the WFH days and what your manager is actually like. We are comparing what Australian companies really offer, and we need your help to do it.
It takes about 5 minutes and most of it is already filled in, so you won’t need to dig out your contract. There’s also a section on culture where you can tell us what your workplace is really like. It’s anonymous, and the results go straight back to the community.
THE BIG CONVERSATION
Why a great review didn’t get you a great pay rise
In case you didn’t know already, in most big corporates, your performance rating and your pay rise are worked out separately. Your base pay increase usually comes down to the company’s budget for the year and where you sit in your pay band.
Each year the company allocates one budget for everyone’s pay rises, say 3.5%, and splits it up by rating. Someone rated average might get 3%, and someone rated outstanding might get 4%. On a $100K salary, that 1% difference is $1,000 a year before tax, or about $20 a week, for a much tougher year. If you’re already near the top of your pay band, you’ll likely get even less regardless of how well you did.
It works out better this way from the company’s POV. A pay rise is permanent, so they’d much rather reward a good year with a one-off bonus. However that usually stops working when the business has a bad year and the bonus pool dries up (despite the company making record profits). Then you’ve worked all year for a top rating and walked away with a raise that doesn’t even keep up with inflation, and no bonus at all.
Most firms use a bell curve, which means only a set number of people in each team can get a top score no matter how many of you smashed it. When the ratings get decided, it usually comes down to whose manager argued hardest in that room. A lot of people leave their review feeling like they worked hard for nothing, and the limit on top ratings is often the reason for this.
The real money will come from a promotion or a new job, so you’re better off putting your energy there. It’s also why the salary you negotiate when you first start is the most leverage you’re ever going to get. Especially since every raise after that builds on it.
PICK & SCROLL BY THE AUSSIE CORPORATE | LAST WEEK'S TOP PICKS
102 of 251 occupations in shortage are trade or engineering roles, with bricklayers, carpenters, electricians, plumbers, plasterers and glaziers among those that are vital to building homes. LINK
Businesses defaulting on ATO tax debts rose 21% to 37,577 as tough economic conditions hit SME cash flows and the ATO pursued record overdue liabilities. LINK
The federal government has extended its ban on KPMG bidding for new government contracts until 28 February 2027, following an independent review that found "serious ethical failings" by the firm's leadership. LINK
Australia's fire seasons are now 21% longer than they were in 1979 as global temperatures warm. LINK
MinterEllison filed a class action in the Federal Court against Meta Platforms representing children who claim addictive features caused them harm while under 18. LINK
Flat White lands every week. The news doesn't. Every weekday morning at 8:00am, we send you everything that happened across Australian business and corporate news in a 2-minute read. Same team. Same voice. Just daily.
THE INSIDE TRACK
THREAD OF THE WEEK - r/AUSCORP
4 day work week vs taking the piss on a Friday afternoon
“Some time ago, mainly pre Covid I remember a lot of fuss about the idea of a 4 day work week, how some progressive countries and companies were trialing it and whether it would become a thing globally and here in Australia.
In the post Covid world where most office jobs are a hybrid WFH set up it seems that 90% of workplaces see most of their employees WFH on a Friday.
Likewise in the last 2 companies I’ve worked it was a pretty common (unofficial) practice for meetings post midday on a Friday to be very rarely scheduled and a general understanding between bosses and employees that not much gets done post lunch on a Friday but everyone is reachable on mobile and teams.
Do you feel like the two are correlated?”
Absolutely. Lazy Friday afternoon is auscorp culture.
Top Comment
THE BRAINS TRUST
NAB is axing up to 2,500 roles, earmarking $80 million this financial year and another $300 million next year for redundancies and a broader restructure. Morgan Stanley expects the overhaul to eventually save the bank $400 to $450 million annually. But NAB admits it hasn't finalised the full scope yet, meaning the final headcount could still climb.
The math here isn't complicated though. Arrears are rising - NAB set aside $706 million to cover bad debts in the first half, a 46% jump from the previous six months. With profit inching up a sluggish 2% in the latest quarter and revenue effectively stalled, slashing staff is the fastest lever to pull to protect the bottom line.
NAB is hardly an outlier. The big four banks shed a record 7,885 jobs collectively in 2025, nearly double the previous year - while ANZ is currently carving out about 3,500 roles of its own. Banking and insurance job ads fell 21% in the three months to May, the sharpest drop of any sector nationwide. Looking ahead, Macquarie predicts the majors could trim their workforces by 10% to 30% over the next decade.
The squeeze is also hitting contractors and consultants. NAB has pledged to "materially" slash its external spend, pouring salt on a consulting sector that is already shrinking for a second consecutive year. Add in the federal government - which nearly halved its Big Four consulting spend from roughly $637 million in 2024 to $348 million in 2025 - and you have two of the market's biggest buyers simultaneously closing their wallets.
OFF THE CLOCK
GOING
One night, one Michelin star, Sydney
Hong Kong's Yardbird is doing a single pop-up in Sydney, so if you can get a reservation, clear the diary. LINK
EATING
Where to buy the best Christmas hams in Australia this festive season
Not sure what size Christmas ham to buy? From feeding the whole family to planning for leftovers, butcher Oliver Hagen shares his tips on choosing the right ham for your Christmas table. LINK
READING
On anxiety and what it actually means
A sharp essay on the gap between using anxiety as shorthand and living with the clinical version. LINK
WATCHING
KPop Demon Hunters 2 reportedly set for theatrical release
After the massive streaming success of KPop Demon Hunters, its sequel is reportedly heading to cinemas. The theatrical release has yet to be officially announced, but fans could soon get to experience the next instalment on the big screen. LINK
WEARING
7 ways fashion girls are styling flats with wide-leg jeans
From ballet flats to loafers, here are seven easy ways to style wide-leg jeans and make your everyday outfits look a little more put-together. LINK
AUSCORP EVENTS
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ODD PICKS FROM LAST WEEK
Myer just abolished work from home as Victoria tries to legally protect it. LINK
What to eat for younger-looking skin? LINK
Golfer smashes world record with a 588-yard drive, nearly a third of a mile. LINK
“Microneedling in a bottle” is going viral, but is spicule skincare safe? LINK
What the Japanese can teach us about super-ageing gracefully. LINK
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