Perth Investment News – April 2026
Welcome to the April’s edition of Wealth News
This quarterly newsletter brings you the latest insights on the strategies, legislative changes and opportunities we are exploring.
During the quarter, Division 296 was enacted, introducing a tax on large superannuation balances. Notably, there were significant amendments to the original draft legislation, including the removal of the proposed tax on unrealised capital gains and the introduction of indexation for the relevant thresholds. The Greens supported the revised, less stringent legislation, describing it as a ‘down payment’ on further tax reforms expected in the May 2026 Budget. They signalled a strong interest in seeing changes to capital gains tax (CGT) concessions and negative gearing.
It was a volatile quarter from an economic and market perspective. The US Supreme Court rejected the legitimacy of the Trump tariff policies, only for his government to introduce new measures under a different federal statute. While this development was significant, it was soon overshadowed by the escalating conflict with Iran. This geopolitical tension led to a rise in oil prices, heightening concerns about inflation and the growing risk of recession.
Articles this quarter
Artificial intelligence continues to dominate market narratives, yet its implications extend well beyond near-term technology trends. The following articles examine three interconnected forces reshaping investment outcomes: the repricing of software business models amid growing disruption, the substantial capital and infrastructure required to build artificial intelligence at scale, and the reality that energy itself is becoming a strategic economic constraint. Together, these insights highlight why AI is best understood not as a stand-alone innovation theme, but as a structural shift with meaningful consequences for business profitability, capital allocation and long-term returns.
We hope you find this newsletter informative and useful.
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The links to the following articles (below) are provided by Pitcher Partner Investment Services Pty Ltd (PPIS) a separate business based out of Melbourne.
Navigating the ‘SaaSpocalypse’
Marc Andreessen, the noted venture capital investor, once famously said “software is eating the world”, as software became ubiquitous across our lives. That narrative in the early months of this year, dramatically shifted to “AI is eating software”. The software industry, using the iShares Expanded Tech-Software Sector ETF (IGV) as a primary proxy for the industry, plummeted more than 20% year-to-date by mid-February.
The cost of building intelligence: An AI infrastructure story
Artificial Intelligence is often viewed as a software story, but it is becoming increasingly infrastructure centric. Behind the excitement surrounding generative AI, there is a growing physical buildout, ranging from data centres to semiconductors. The level of capital required for this infrastructure buildout is seeing some of the world’s largest technology companies increase their dependence on debt and private capital to finance these projects.
Congealed electricity
Copper continues to command the lion’s share of attention in the base metal markets. There is widespread acknowledgment of its attractive long-term demand profile and resultant heightened corporate activity: BHP initial play for Anglo America in 2024, subsequent Anglo American ’merger of equals‘ with Teck Resources in 2025 and ’ Rio Tinto and Glencore also considering a merger in early 2026.
