1
00:00:05,280 --> 00:00:07,360
Speaker 1: This is what the Flux I'm brand.

2
00:00:07,880 --> 00:00:10,000
Speaker 2: Justin add It's Wednesday, the second of October.

3
00:00:10,039 --> 00:00:10,720
Speaker 1: Flex Family.

4
00:00:10,880 --> 00:00:14,400
Speaker 3: On my Big Return, I have some big public service announcements.

5
00:00:14,400 --> 00:00:17,119
Speaker 3: First up, if you are submitting your tax returney yourself,

6
00:00:17,160 --> 00:00:19,319
Speaker 3: not through a tax agent, you've got less than a

7
00:00:19,360 --> 00:00:22,800
Speaker 3: month to submit, Otherwise you could cop a fifteen hundred

8
00:00:22,800 --> 00:00:26,400
Speaker 3: dollar fine, So make sure you get Oh Nitch is coming.

9
00:00:26,239 --> 00:00:28,159
Speaker 2: In hot, b Man, a big welcome back to you,

10
00:00:28,320 --> 00:00:31,200
Speaker 2: and big public service announcement. Speaking of which, we have

11
00:00:31,280 --> 00:00:33,560
Speaker 2: a heap of articles and videos and even a whole

12
00:00:33,600 --> 00:00:35,680
Speaker 2: academy in the flex Out to help you submit your

13
00:00:35,680 --> 00:00:37,959
Speaker 2: tax returns this year, fox them step by step back,

14
00:00:38,080 --> 00:00:40,480
Speaker 2: dollar by dollar. So make sure to download the flex

15
00:00:40,520 --> 00:00:42,480
Speaker 2: Out to check it all out and get some help.

16
00:00:42,520 --> 00:00:45,720
Speaker 3: Three revolutionary stories today, Josy boy, let's do it for

17
00:00:45,920 --> 00:00:49,400
Speaker 3: our first. Chemist Warehouse has seen its profit jump almost

18
00:00:49,440 --> 00:00:53,320
Speaker 3: eighty percent as it gets closer and closer to finalizing

19
00:00:53,320 --> 00:00:55,560
Speaker 3: its merger with Sigma Healthcare.

20
00:00:55,160 --> 00:00:57,320
Speaker 2: More profits than adds on TV. I tell you, b Man,

21
00:00:57,400 --> 00:00:58,680
Speaker 2: so tell me what's going on here?

22
00:00:58,720 --> 00:01:00,800
Speaker 3: So, Josie Boy, we all know Chemist Warehouse for its

23
00:01:00,840 --> 00:01:02,480
Speaker 3: bright yellow stores and.

24
00:01:02,480 --> 00:01:05,360
Speaker 2: Don't forget its painful jingle which can never escape the

25
00:01:05,400 --> 00:01:06,200
Speaker 2: back of your brain.

26
00:01:06,360 --> 00:01:08,840
Speaker 3: Now and over the past twenty years or so, Chemists

27
00:01:08,840 --> 00:01:11,640
Speaker 3: Warehouse has grown into an absolute bare hem moth.

28
00:01:11,760 --> 00:01:12,680
Speaker 1: As they say in the UK.

29
00:01:12,800 --> 00:01:15,160
Speaker 2: We're talking over six hundred and thirty stores, over twenty

30
00:01:15,160 --> 00:01:18,080
Speaker 2: thousand employees across Australia, New Zealand even China.

31
00:01:18,200 --> 00:01:20,520
Speaker 3: Now, Josey Boy, you'll remember in December last year that

32
00:01:20,640 --> 00:01:23,760
Speaker 3: Chemist Warehouse announced it would merge with none other than

33
00:01:23,920 --> 00:01:24,959
Speaker 3: Sigma Healthcare.

34
00:01:25,080 --> 00:01:26,640
Speaker 2: I do. It was going to be an eight point

35
00:01:26,640 --> 00:01:28,920
Speaker 2: eight billion dollar reverse takeover.

36
00:01:28,720 --> 00:01:31,480
Speaker 3: But it's subject to approval from the Asiable Sea, which

37
00:01:31,720 --> 00:01:33,960
Speaker 3: is hoped to be approved later this month.

38
00:01:34,000 --> 00:01:36,160
Speaker 2: So be man. All investors had their eyes peeled for

39
00:01:36,240 --> 00:01:40,520
Speaker 2: Chemists Warehouses potentially last financial results as a private company, and.

40
00:01:40,480 --> 00:01:42,200
Speaker 1: Josep Boy, it did not disappoint.

41
00:01:42,360 --> 00:01:44,640
Speaker 3: Chemists ware House announced a full year profit of over

42
00:01:44,840 --> 00:01:47,880
Speaker 3: five hundred and thirty nine million dollary dues.

43
00:01:47,920 --> 00:01:49,840
Speaker 2: And that's up from just three hundred and two million

44
00:01:49,840 --> 00:01:50,800
Speaker 2: bucks the year before.

45
00:01:50,920 --> 00:01:53,200
Speaker 3: Fair to say that's a lot more than the savings

46
00:01:53,240 --> 00:01:55,000
Speaker 3: on your half price of vitamins.

47
00:01:55,120 --> 00:01:58,160
Speaker 2: That's true, and be man. Sigma Healthcare also announced bigger

48
00:01:58,160 --> 00:01:59,200
Speaker 2: results late last week.

49
00:01:59,320 --> 00:02:02,360
Speaker 3: Yep, they're profits excluding costs for the merger were up

50
00:02:02,400 --> 00:02:03,760
Speaker 3: over three hundred percent.

51
00:02:03,520 --> 00:02:06,280
Speaker 2: And with both companies a role in cashion profits. The

52
00:02:06,360 --> 00:02:09,600
Speaker 2: question is all these juicy numbers change the merger terms?

53
00:02:09,720 --> 00:02:12,359
Speaker 3: Ooh, fascinating question, Jasi boy. So I'm wondering over here,

54
00:02:12,360 --> 00:02:14,440
Speaker 3: what is the key learning on my big return?

55
00:02:14,560 --> 00:02:17,320
Speaker 2: As time stretches on, it can often force a rethink

56
00:02:17,440 --> 00:02:19,120
Speaker 2: of the terms of a pending merger.

57
00:02:19,200 --> 00:02:20,440
Speaker 1: Oh, hit me where it hurts there.

58
00:02:20,480 --> 00:02:23,400
Speaker 3: This is because the financial performance of the companies involved

59
00:02:23,400 --> 00:02:25,880
Speaker 3: can change dramatically during the waiting period.

60
00:02:25,880 --> 00:02:28,720
Speaker 2: We're talking almost eleven months until a decision will be

61
00:02:28,720 --> 00:02:29,720
Speaker 2: made by the atriable c.

62
00:02:29,840 --> 00:02:32,280
Speaker 3: Now, for Chemists Warehouse, its profit increased by more than

63
00:02:32,360 --> 00:02:33,480
Speaker 3: seventy eight percent.

64
00:02:33,200 --> 00:02:35,200
Speaker 2: And Sigmas jump more than three hundred percent.

65
00:02:35,240 --> 00:02:35,959
Speaker 1: Now, Josy boy.

66
00:02:35,960 --> 00:02:38,519
Speaker 3: As a quick refresher, the original terms of the deal

67
00:02:38,520 --> 00:02:42,200
Speaker 3: would give Sigma shareholders fourteen percent of this combined company.

68
00:02:42,240 --> 00:02:44,120
Speaker 2: So the man who knows if this long time they

69
00:02:44,160 --> 00:02:46,720
Speaker 2: also change the terms of this mega farmer merger, the

70
00:02:46,720 --> 00:02:48,680
Speaker 2: final prescription is still being written.

71
00:02:48,800 --> 00:02:52,520
Speaker 3: For our second story, Australia's airline industry has a new

72
00:02:52,560 --> 00:02:55,720
Speaker 3: player in town, and its name is Koala Airlines.

73
00:02:56,240 --> 00:02:58,880
Speaker 2: No, surely after the downfall of Tiger they could have

74
00:02:58,880 --> 00:03:01,400
Speaker 2: steered clear of the animal. What is the story here.

75
00:03:01,280 --> 00:03:04,079
Speaker 3: Well, Jasi boy, we know that the Australian aviation industry

76
00:03:04,120 --> 00:03:06,560
Speaker 3: for the longest time has had two major players.

77
00:03:06,600 --> 00:03:08,960
Speaker 2: There's Quantas and it's budget carrier jet Star, and then

78
00:03:09,000 --> 00:03:10,919
Speaker 2: there's Virgin and that's it.

79
00:03:11,000 --> 00:03:12,959
Speaker 3: Now other players have come in and tried to capture

80
00:03:13,000 --> 00:03:15,080
Speaker 3: some of the domestic market share, but none of them

81
00:03:15,120 --> 00:03:15,799
Speaker 3: have really lasted.

82
00:03:15,840 --> 00:03:18,359
Speaker 2: But be man, this history hasn't a turred the latest

83
00:03:18,360 --> 00:03:22,760
Speaker 2: player to enter Australia's aviation market. We're talking Koala Airlines.

84
00:03:22,960 --> 00:03:25,680
Speaker 3: Yeah, Koala used to be a charter business called does

85
00:03:25,720 --> 00:03:28,360
Speaker 3: It Air Safaris and it took tourists through Australia and

86
00:03:28,400 --> 00:03:30,240
Speaker 3: Africa and even Papua New Guinea.

87
00:03:30,280 --> 00:03:33,800
Speaker 2: But Beman, public transport flights are a whole different game.

88
00:03:33,880 --> 00:03:36,240
Speaker 3: And at the moment Kouala has no aircraft and it's

89
00:03:36,280 --> 00:03:39,360
Speaker 3: also still waiting to get approval to operate public transport flights.

90
00:03:39,480 --> 00:03:41,360
Speaker 2: So be man, It's fair to say Koala has a

91
00:03:41,480 --> 00:03:43,520
Speaker 2: lot of work to do if it wants to compete

92
00:03:43,560 --> 00:03:45,320
Speaker 2: with the big dogs of the uzzy sky.

93
00:03:45,360 --> 00:03:48,200
Speaker 1: Especially when there is such a high barrier to entry.

94
00:03:48,320 --> 00:03:50,360
Speaker 2: So true, So tell me what is the key learning

95
00:03:50,400 --> 00:03:50,960
Speaker 2: on your return.

96
00:03:51,080 --> 00:03:53,680
Speaker 3: Barriers to entry are the costs and challenges that make

97
00:03:53,720 --> 00:03:55,960
Speaker 3: it tough for new businesses to enter an industry.

98
00:03:56,000 --> 00:03:58,960
Speaker 2: You see, be Man. Some industries have almost no barriers

99
00:03:58,960 --> 00:03:59,440
Speaker 2: to entry.

100
00:03:59,680 --> 00:04:02,600
Speaker 3: Yeah, like becoming a content creator, just need my phone,

101
00:04:02,640 --> 00:04:04,880
Speaker 3: internet connection and maybe a ring light.

102
00:04:05,000 --> 00:04:08,560
Speaker 2: But other industries, like banking or aviation, they've got significant

103
00:04:08,600 --> 00:04:12,200
Speaker 2: barriers like regulatory requirements and a heap of upfront capital.

104
00:04:12,280 --> 00:04:15,320
Speaker 3: Now, for an airline like Koala to succeed, it needs

105
00:04:15,320 --> 00:04:17,520
Speaker 3: to go through a lot of regulatory hurdles to get

106
00:04:17,520 --> 00:04:20,960
Speaker 3: the approvals required to actually fly the plane.

107
00:04:20,680 --> 00:04:22,000
Speaker 2: And then on top of that, it needs to be

108
00:04:22,080 --> 00:04:24,960
Speaker 2: able to source planes and compete on prices with industry

109
00:04:25,000 --> 00:04:27,200
Speaker 2: giants like Quantus and Virgin. Be man. If we look

110
00:04:27,240 --> 00:04:29,960
Speaker 2: at history, there was Compass, Australia's first low cost airline,

111
00:04:29,960 --> 00:04:32,400
Speaker 2: which launched in nineteen ninety but was gone by nineteen

112
00:04:32,480 --> 00:04:34,480
Speaker 2: ninety one. Then of course there was Rex, We've had

113
00:04:34,480 --> 00:04:37,120
Speaker 2: Tiger Air, don't forget old BONDSA, all of which came

114
00:04:37,200 --> 00:04:39,640
Speaker 2: and went, and so be man. For Koala Airlines to

115
00:04:39,680 --> 00:04:41,839
Speaker 2: compete with the big dogs. They'll need some deep pocket

116
00:04:41,839 --> 00:04:44,080
Speaker 2: investors or some help through government support.

117
00:04:44,200 --> 00:04:46,240
Speaker 1: For our third and final story.

118
00:04:46,400 --> 00:04:49,000
Speaker 3: Open ai, the creator of chat gpt, has seen a

119
00:04:49,120 --> 00:04:52,040
Speaker 3: number of executives quit after the company announced plans to

120
00:04:52,080 --> 00:04:54,200
Speaker 3: become a fully for profit company.

121
00:04:54,279 --> 00:04:57,000
Speaker 2: Someone's getting greedy in the open ailb Man, So tell

122
00:04:57,040 --> 00:04:57,800
Speaker 2: me what's going on?

123
00:04:57,880 --> 00:05:00,440
Speaker 3: Well it does, boy, Well no open ai for really

124
00:05:00,480 --> 00:05:04,240
Speaker 3: getting AI out to the masses, to its chatbot chat GPT.

125
00:05:03,960 --> 00:05:06,599
Speaker 2: But Bman. Open air was originally founded back in twenty

126
00:05:06,640 --> 00:05:08,640
Speaker 2: fifteen as a non profit.

127
00:05:08,400 --> 00:05:11,240
Speaker 3: Started with the goal to build AI that benefits all

128
00:05:11,279 --> 00:05:12,040
Speaker 3: of humanity.

129
00:05:12,080 --> 00:05:15,000
Speaker 2: But then in twenty nineteen it switched to a capped

130
00:05:15,080 --> 00:05:19,320
Speaker 2: profit structure which basically limited the maximum financial turns to

131
00:05:19,360 --> 00:05:20,719
Speaker 2: investors and to employee.

132
00:05:20,800 --> 00:05:22,919
Speaker 1: And why why did they do that, Jossi?

133
00:05:22,960 --> 00:05:26,200
Speaker 2: Boy, because they wanted to balance commerciality with the safety

134
00:05:26,279 --> 00:05:29,960
Speaker 2: and sustainability of AI. But Beman. Now open AI's board

135
00:05:29,960 --> 00:05:33,440
Speaker 2: has announced it's considering shifting to a fully for profit

136
00:05:33,560 --> 00:05:37,080
Speaker 2: corporate structure. And since this announcement, open Ai CTO stepped down.

137
00:05:37,200 --> 00:05:39,760
Speaker 2: Its chief research officer has also stepped.

138
00:05:39,480 --> 00:05:42,239
Speaker 3: Down, and there are now concerns and open ai ain't

139
00:05:42,320 --> 00:05:44,839
Speaker 3: about benefiting humanity anymore.

140
00:05:44,440 --> 00:05:47,440
Speaker 2: And it's more focused on bringing in those Benjamin Franklins.

141
00:05:48,680 --> 00:05:51,520
Speaker 2: So what is the Benjamin Franklin key learning here? When

142
00:05:51,560 --> 00:05:55,360
Speaker 2: survival costs billions, mission statements often take a back seat

143
00:05:55,520 --> 00:05:56,200
Speaker 2: to profits.

144
00:05:56,400 --> 00:05:59,880
Speaker 3: Yep, you see, joy boy, AI supercomputers are super expensive

145
00:06:00,040 --> 00:06:00,719
Speaker 3: to actually run.

146
00:06:00,800 --> 00:06:03,000
Speaker 2: Yeah get this. Open ay is believed to be generating

147
00:06:03,040 --> 00:06:05,840
Speaker 2: about three billion US dollars in annual sales.

148
00:06:05,560 --> 00:06:08,760
Speaker 3: But it's spending seven billion US dollars to just run

149
00:06:08,800 --> 00:06:09,279
Speaker 3: the business.

150
00:06:09,279 --> 00:06:11,159
Speaker 2: So the challenge for open ai is that it needs

151
00:06:11,160 --> 00:06:14,120
Speaker 2: to raise money in order to continue operating and growing.

152
00:06:14,240 --> 00:06:17,920
Speaker 3: And open AI's investors come from the for profit world

153
00:06:17,960 --> 00:06:20,640
Speaker 3: and are seeking a profitable investment here.

154
00:06:20,880 --> 00:06:23,520
Speaker 2: Yeah, so open ai faces a challenge to balance its

155
00:06:23,520 --> 00:06:27,600
Speaker 2: commercial outcomes for investors alongside its humanitarian goals. Blucks O,

156
00:06:27,600 --> 00:06:29,920
Speaker 2: I'm just a little reminder, a big psa that if

157
00:06:29,960 --> 00:06:32,039
Speaker 2: you are submitting at tax return yourself, you've got to

158
00:06:32,040 --> 00:06:34,560
Speaker 2: do it before October thirty first. And we have a

159
00:06:34,600 --> 00:06:37,040
Speaker 2: heap of articles and videos and even an academy in

160
00:06:37,120 --> 00:06:39,360
Speaker 2: the flucks out to help you step by step. A man,

161
00:06:39,440 --> 00:06:41,400
Speaker 2: it was huge. Shabby back can bring the energy.

162
00:06:41,520 --> 00:06:44,560
Speaker 1: Thanks, Jusy boy thrilled and I mean damn thrilled to

163
00:06:44,600 --> 00:06:45,159
Speaker 1: be back with you.

164
00:06:45,240 --> 00:06:47,480
Speaker 2: Thanks for listening, and we'll see you on Friday.