In today’s newsletter, we’re taking a look at Canva - the 13th most valuable private company in the world (according to Crunchbase, a database for company valuations). Before you click that link, see if you can guess the largest private company (an organisation valued at 20 times what Canva is said to be worth).

If you can’t work it out, just ChatGPT it!

One of Australia’s most successful tech start-ups, Canva, is making major changes to embed AI into its design platform.

The move comes ahead of the company going public next year, in what will be one of the most valuable initial public offerings (IPO) from an Australian company.

It also highlights how quickly software as a service (SaaS) companies are being forced to adapt, as AI rapidly transforms the sector.

Canva is a graphic design platform founded in Perth in 2013 by Melanie Perkins, Cliff Obrecht and Cameron Adams.

It rose to popularity by making graphic design simple and accessible, allowing both professionals and everyday users to create content with ease

The company, now worth $60 billion, boasts 265 million monthly users globally.

Dubbed “Canva AI 2.0”, the updates were announced last week at the company’s annual showcase, Canva Create, in Los Angeles.

The new feature allows users to generate designs by prompting AI directly within the platform, rather than manually building them using individual tools.

Canva says this will significantly speed up the design process, removing the need to learn multiple features across the site.

Rival design software company Adobe announced a similar AI integration this week, highlighting how quickly the industry is moving to embed AI into creative workflows.

The “SaaSpocalypse” is a term used by the tech industry to describe how AI is disrupting the SaaS sector – short for “software as a service”, where companies sell subscription-based software (like design tools, accounting platforms, or project management apps).

New AI models, such as Anthropic’s Claude, have raised concerns across the sector, particularly for financial software companies, as they can now perform many of the same tasks – often faster and at a lower cost.

This has sparked fears that some SaaS products could become less valuable or even obsolete.

Australian tech giant Atlassian faced significant market pressure this year and announced job cuts affecting 10% of its workforce as it pivots towards AI.

Other companies, including Block (the owner of Square) and logistics software player WiseTech, have also cut jobs as firms globally race to adopt AI.

Canva AI 2.0 also marks a change in the way software is monetised.

Traditionally, SaaS companies have relied on subscription models, where users pay a fixed monthly fee for access. This works because once software is built, the cost of delivering it to each new user is relatively low.

However, AI changes that. Running these tools is significantly more expensive due to computing power and servers required for each request.

As a result, Canva is introducing an “AI credits” system where users pay based on how often they use AI features, rather than just a flat subscription.

With a long-awaited IPO expected for next year, it is highly unusual for a company like Canva to be making such a significant change to its core product so close to going public.

The scale of the update highlights how disruptive the SaaS industry believes AI could be.

If the AI credit model gains traction, it could reshape how many companies – not just in tech – think about pricing and revenue.

Reporting by Lachlan Keller.

3 things to consider when investing globally

1. Don’t just stick to Aussie stocks – backing local companies is safe, but home bias can limit diversification and growth opportunities.

2. Decide how to invest: direct international shares, global ETFs, or managed funds, and compare costs, complexity and diversification.

3. Be aware of extra costs for international trades, including brokerage and currency conversion.

^{Transparency: This is a sponsored section of the newsletter. It’s the best way we can keep this newsletter free for you.}

^{Information is general in nature. Investing carries risk. To find out more, you can visit commsec.com.au}

More than six million Australian workers could claim an instant $1,000 without having to keep receipts from next year under new legislation set to be introduced by the Government.

The draft legislation for the policy landed on Monday, just over a year after Labor proposed the change in the run-up to the 2025 election.

This is what it means for you.

This is not exactly a cash handout.

This policy allows taxpayers to automatically claim a $1,000 deduction from their taxable income without needing to provide receipts.

However, it is not a direct $1,000 payment.

Instead, deductions reduce the amount of income you are taxed on. For example, if you earn $70,000 and claim $800 in deductions, you will only be taxed on $69,200.

The measures are projected to cost $2.4 billion over the forward estimates – the four years following the federal budget.

Treasurer Jim Chalmers said that 6.2 million Australians – around 42% of taxpayers – will benefit in the 2026–27 tax year, with an average saving of $200.

Treasury estimates around three-quarters of eligible taxpayers earn under $100,000 and could save closer to $295 per year.

The scheme only applies to income earned through work, not from businesses or investments.

It will take effect from the next financial year, meaning most people won’t see the benefit until they lodge their tax return in 2027.

Then the benefit doesn’t apply.

If your work-related expenses exceed $1,000, you’ll need to claim them the usual way, which means listing and being able to prove them with receipts.

In other words, the new system only helps if your deductions are under $1,000.

Treasurer Jim Chalmers says this is about addressing cost-of-living pressures for taxpayers and simplifying the tax system.

Senior economist at the Australia Institute, Matt Grudnoff, told The Daily Aus he thought the measure was “largely a good move.”

Grudnoff said simplifying the tax code in this way could save taxpayers even more money by sparing them from hiring a tax accountant at tax time.

It is a test performed annually by the Australian Prudential Regulation Authority (APRA) to evaluate whether super funds are delivering appropriate investment returns.

It is intended to hold funds to account for underperformance through greater transparency and increased consequences.

Treasurer Jim Chalmers told reporters in Canberra on Monday that the government was looking to reform the test ahead of the upcoming 12 May budget.

Last year, Chalmers said Treasury wanted to make it easier for superannuation funds to invest in areas of “national need”, such as housing.

On Monday he clarified that the Government did not want to weaken the power of the test, calling it a “crucial part of the superannuation system.”

Chalmers added that the update would be announced in the “coming weeks or days.”

Reporting by Lachlan Keller.

Not all ETFs aim for the same thing

Some Exchange Traded Funds (ETFs) focus on income, investing in companies that pay regular dividends. Others chase growth, targeting industries or regions expected to expand over time – like technology or emerging markets.

Many investors choose to mix both approaches depending on their goals, time horizon, and stage of life - whether building wealth, generating income or balancing the two.

Because at the end of the day, the goal isn’t just chasing the hottest investment – it’s choosing something that actually fits your long-term plan.

^{Disclaimer: Information is general in nature. Investing carries risk. To find out more, you can visit commsec.com.au}  

The two largest car share companies in Australia have removed fuel cards from their vehicles in Melbourne after a series of thefts.

GoGet and Flexicar use fuel cards so members can refuel without paying out of pocket. The cards are linked to each booking and are intended for use only when a vehicle is hired.

Now, drivers will need to pay for petrol themselves and then request a reimbursement from the company.

“GoGet pays for fuel but you actually need to book the GoGet for the fuel card to work… This could be one of the dumbest crimes ever,” GoGet’s Head of Space Christopher Vanneste told The Guardian.

Reporting by Annabel Whitehouse.