Australia’s Business Council of Co-operatives and Mutuals (BCCM) has called on the federal government to support the sector as it prepares its annual budget.
CEO Melina Morrison said the sector has been encouraged by the effective partnership with government to build the co-operative and mutual care economy over recent years.
“The care sector is just one example,” she added. “There is growing recognition that co-ops and mutuals boost competition, address service gaps and provide a means for SMEs to boost their productivity and exports.
“We have put forward four targeted measures to accelerate the growth of co-ops and mutuals, including immediate opportunities to increase social care delivery and domestic food and beverage processing capacity.
Related: 2025 in review – Melina Morrison
“A sustained focus from government on providing a modern legislative and regulatory environment for the sector can boost long-term formation and growth rates, contributing to a more dynamic, diverse and inclusive Australian economy.”
The BCCM’s four budget measures
Extend the Care Together programme
The Commonwealth-funded Care Together programme has successfully established care co-operatives in regional and remote Australia, says the BCCM, “improving service access, workforce retention and community outcomes in aged care, disability and primary health care”.
The apex wants Care Together extended to support the growth of the co-op care sector in areas of unmet need and to consolidate gains aligned with the government’s commitment to aged care reform, the NDIS and Medicare strengthening.
National access to co-operative loans
Longstanding income tax settings enable producer-owned co-ops to invest in value-adding
activities when they have access to a loan from a state or Commonwealth government, says the BCCM. It adds: “The Commonwealth should provide a loan facility for eligible co-operatives to address gaps in availability and boost co-operative investment in food and beverage manufacturing and logistics.”
Asset lock protection
BCCM wants the Corporations Act amended to provide a permanent ‘legacy asset’ protection framework for mutual entities.
“International experience shows that mutuals have more confidence to focus on growth strategies when legacy assets are permanently protected from asset raids (a form of merger activity with little consumer or competitive benefit,” it says.
Treasury corporate diversity taskforce
Structural legislative and regulatory barriers limit CME growth and formation rates across the economy, warns the BCCM, which wants to see resources allocated for a “Treasury corporate diversity taskforce to examine the structure, distribution and effects of capital ownership in Australia and develop policies to accelerate formation and growth of CMEs and employee-owned businesses”.
The Taskforce could consider matters such as regulatory modernisation for co-operatives registered under Co-operatives National Law and reforms needed to make employee ownership a mainstream family-owned SME succession model, the BCCM adds.
