On Thursday the Australian Parliament passed the Treasury Laws Amendment (Mutual Reforms) Act 2019.
This is the culmination of three years work by Mutuo, the Australian Business Council of Co-operatives and Mutuals and an unprecedented collaboration between mutual businesses across industry sectors.
It is a major step forward for Australia, delivering new landmark legislation and the first positive change to the Corporations Act for mutuals in 18 years.
• The mutual definition in the Corporations Act now identifies the importance of the sector as part of a diverse economy.
• New mutual capital instruments will facilitate growth and innovation of mutuals helping them to compete with listed businesses.
• All of this achieved whilst mutuality is safeguarded for future generations by ensuring member control remains paramount.
Mutuo’s Chief Executive, Peter Hunt, said:
“This success reflects the willingness of the Australian sector to work positively and provide leadership for mutuals. The story in Australia is inspiring. In just a few years, the way mutuals are seen and understood by the government and opposition has been transformed.”
“We have also enjoyed ongoing and sustained support across the political landscape, from the government as well as opposition parties. The Australian sector has shown how a well executed strategy can deliver real improvements to the business environments for co-operatives and mutuals.”