National Mutual Economy Report

Rohan Mead

Group Managing Director & CEO, Australian Unity 

The NME report shows impressive revenue and profit gains in the co-ops and mutuals sector over the past year; what is the outlook over the near to medium term for your sector? Are there potential pitfalls that need to be avoided?

“The co-ops and mutual enterprise sector has a huge opportunity to promote its strengths and relevance during this time of global economic turbulence and social change.

Politicians and regulators are increasingly aware and supportive of the sector but, as always, there is considerable work to be done to ensure that our voice is heard when the big economic and social decisions are being made.

While Australia has a proud history of building and expanding the co-ops and mutuals sector, in recent years this historic strength has been overshadowed by other business models.”

This is International Year of Cooperatives – how do you hope and expect the co-op and mutual movement will make its mark in Australia over the next 12 months?

“The economic and social value inherent in the CME sector is now more relevant than ever, and the International Year of Cooperatives represents a wonderful opportunity for Australia to reconnect and participate in a global reappraisal of how communities can seize opportunities to contribute to their own quality of life.”

Steve Laidlaw

CEO People First Bank 

The NME report shows impressive revenue and profit gains in the co-ops and mutuals sector over the past year; what is the outlook over the near to medium term for your sector? Are there potential pitfalls that need to be avoided? 

“We are at a critical moment for the customer-owned sector. With trust in large institutions at historic lows, more Australians are turning to organisations that act with integrity, serve a clear purpose and contribute to their communities. That presents a real opportunity but also a clear challenge.

To stay relevant, we must combine what makes us different – our values, our connection to customers – with serious investment in digital capability, service delivery and compliance.

Customers also want banking to be simple and hassle-free. We need both simplicity, and our values differentiator, to ensure our future success.

At People First Bank, we see digital as a way to enhance simplicity and strengthen personal connection, not replace it. But doing this well requires scale. We expect to see further consolidation in the sector so mutuals can keep pace with change and do more for their customers.”

How do your members benefit on a regular basis from being part of the mutual movement? 

“In banking, what matters most to customers is how they are treated, how easy it is to manage their money and whether their bank acts in their best interests. The mutual model gives us the ability to focus entirely on those things, without the pressure of shareholder returns.

That means we can offer competitive pricing, invest in better digital experiences and take a more personal approach to service – especially when it comes to protecting customers from scams, supporting those in vulnerable situations or helping people navigate major life events.

Many customers also tell us they value banking with an organisation that feels part of their community. For us, that is reflected in practical ways: supporting local organisations and events and creating meaningful careers in the places where our customers live and work.”

This is International Year of Cooperatives – how do you hope and expect the co-op and mutual movement will make its mark in Australia over the next 12 months? 

“At People First Bank, we are marking our 150th anniversary this year – a milestone that brings both pride and responsibility. We are the custodians of the strength that comes from communities working together with a shared purpose. Our job is to ensure those values remain relevant today.

The International Year of Cooperatives is a chance to show how the sector continues to offer a genuine alternative. One that puts people first, acts with integrity and delivers long-term value.

At a time when Australians are looking for institutions they can trust, we have a responsibility to lead by example – not by resting on tradition, but by demonstrating how purpose and performance can go hand in hand.”

Cathy Main

CEO Barossa Co-op

The NME report shows impressive revenue and profit gains in the co-ops and mutuals sector over the past year; what is the outlook over the near to medium term for your sector? Are there potential pitfalls that need to be avoided? 

“According to market data, the retail sector has bounced back since COVID 19. As the Barossa Co-op operates businesses in differing sectors, from supermarkets, to hardware, electrical goods, sporting goods and apparel, we find that each sector has varying growth rates depending on both consumer sentiment, and the impact form the local Barossa Valley economy. Given the volatility surrounding tariffs globally, coupled with consumer and climate uncertainty in an agricultural region, we believe there may be continued headwinds around consumer ‘discretionary’ income, and therefore categories like electrical and apparel may not experience the same growth rates as other sectors. This may keep margin growth at bay as businesses continue to compete striving to capture the customers’ share of wallet. The building industry will also be another sector to watch closely.”

How do your members benefit on a regular basis from being part of the co-op movement? 

“With over 21,000 members who own Barossa Co-op, we consider what retail products and services are delivered to the community, through to ensuring return on assets are maximised and members have memorable, positive experiences when they interact with Barossa Co-op owned and operated businesses, including Barossa Central shopping centre.

The value of a co-operative, and being a member of it, is more than economic. Members have equity in an organisation and are paid interest on that investment. Currently, the Barossa Co-op pays its members 2 per cent above the Reserve Bank of Australia’s (RBA) Target Cash Rate. This is a competitive return rate and compares favourably to other returns available in Australia’s financial markets.

Another significant economic benefit to members is employment of locals. The Barossa Co-op last financial year employed more than 320 people, with over 210 employed in Barossa Fresh, one of South Australia’s largest independent supermarkets. Barossa Fresh offers a wider range of products and services vs. its competitors, including an inhouse butchery, bakery and a premium, extensive range of cheeses. Fresh fruit and vegetables get delivered from the markets 6 days per week and Barossa Fresh is proud to support over 45 local suppliers.
The additional benefit is that the $14.6M in wages (paid in financial year 2023-24) to locals is spent by them in the community. In turn these businesses pay wages that are, in turn, spent locally. This is known as the ‘multiplier effect’, suggesting that wages paid by Barossa Co-op to its employees is spent another six times. This is approximately $88M being spent in the community. The quality of life and having choice over its own lifestyle is a major benefit for all Barossans.

Another benefit to members is the accountability of the co-operative to its members. There is direct and democratic link to the management of Barossa Co-op. Every member has one vote, regardless of how many shares they own. Members have the right to speak directly to Board or management keeping the organisation accountable for its decisions. It also encourages a culture of openness, transparency, honesty and integrity, values that the Barossa Co-op strongly promotes.

Finally, being a member means experiencing convenience and value. The Barossa Co-op currently owns and operates Barossa Fresh Supermarket, including an online service, Fresh Café, Barossa Mitre 10, The Design Studio, Barossa Betta, Toyworld, Barossa Lifestyle, offering womenswear, menswear, footwear, homewares; and Intersport Barossa, an internationally recognised Franchise brand. Over $690,000 of instant discounts, including fuel discounts, were provided to members over financial year 2023-24.

Barossa Co-op also owns Barossa Central, the region’s largest regional shopping centre, that houses 30 retailers. The combination of retail offerings means members can rely on most of their day-to-day needs being met.

The Barossa Co-op continues to add value to the community through the support of ongoing sponsorship and donation programs, over $110,000 provided financial year 2023-24; free community space in Barossa Central shopping centre and BBQ’s at Mitre 10 to support local non-for-profit organisations to raise their own funds.”

This is International Year of Cooperatives, how do you hope and expect the co-op movement will make its mark in Australia over the next 12 months? 

“Celebrating the United Nation’s International Year of Co-operatives provided an unprecedented opportunity to lift awareness of the incredible Co-operative model both at a local, state and national level. It will help amplify our message for building a better world! Barossa Co-op’s purpose is to ‘Make living in Barossa better’ and as the co-operative model is based on the principle of members influencing their own economic and lifestyle future for the better, the opportunity to ‘shout from the rooftops’ on how co-operating and working together to build self-reliant community wealth is an opportunity not to be missed. Off the back of this momentous occasion is the ongoing opportunity to influence Government on how the co-operative model is a legimate and sound operating model that could be encouraged to build more competition across Australia.”

Ben Macnamara

CEO CBH Group

The NME report shows impressive revenue and profit gains in the co-ops and mutuals sector over the past year; what is the outlook over the near to medium term for your sector. Are their potential pitfalls that need to be avoided? 

“The outlook for the agricultural sector remains strong, with global demand for high-quality grain continuing to grow. At CBH Group, we’re seeing the benefits of sustained investment in supply chain efficiency and infrastructure. That said, volatility is a constant in our industry, whether it’s from global geopolitical tensions or market disruptions. Despite this, we must continue to innovate alongside our grower members, remain cost-conscious and ensure that we’re delivering value back to our members, not just in strong seasons but in the tough ones too. Our long-term focus is on reinvesting into the network to future-proof our operations and to grow and develop markets to keep WA grain growers internationally competitive.”

How do your members benefit on a regular basis from being part of the co-op movement? 

“At CBH, our grower members are at the heart of every decision we make. The benefits are both immediate and long-term. In a direct sense, we offer efficient grain handling services, and access to global markets through our integrated supply chain. Beyond that, surpluses are reinvested back into the co-op to keep fees competitive, upgrade infrastructure, and enhance service levels – so that our members now and into the future can benefit. That member-first approach means growers retain more value on farm and have a say in how their co-op operates. It’s about shared success, and that’s something unique to the co-operative model.”

This is the International Year of Cooperatives, how do you hope and expect the co-op movement will make its mark in Australia over the next 12 months? 

“This year is an important opportunity to highlight the strength, resilience, and relevance of co-operatives in Australia. I hope it brings a broader recognition of how co-ops support local communities, reinvest surpluses locally, and operate with long-term sustainability in mind. For us at CBH, it’s also a chance to deepen the understanding of the co-op model among the next generation of growers and agribusiness leaders. I expect we’ll see greater collaboration across the co-op sector, sharing knowledge and advocating for policy settings that enable mutuals and co-operatives to thrive. The movement’s mark will be made not just in economic terms, but in how we build fairer, more resilient regional communities.”

Michelle Bagnall

CEO Bank First

The NME report shows impressive revenue and profit gains in the co-ops and mutuals sector over the past year; what is the outlook over the near to medium term for your sector. Are their potential pitfalls that need to be avoided?

“We are prudent managers of our businesses – and we don’t take short term views on our sustainability. We don’t operate in a vacuum – so clearly we’re all watching the potential headwinds that are headed our way – e.g. in banking we are conscious of the impacts on interest revenue from interest rate drops; but we also know that a strong economy is good for our Members too. So we’re here in the good times and we stick with our Members through the hard times too.”

How do your members benefit on a regular basis from being part of the mutual movement? 

“What we offer – products, services, information.

The way we offer it – the extra care and the fact we give a damn

The contribution that they make to nurses and teachers – just by choosing us; knowing that the profits we make are always channelled straight back into healthcare and education through our community contributions and the way we support nurses and teachers when they need us most.”

This is International Year of Cooperatives, how do you hope and expect the co-op and mutual movement will make its mark in Australia over the next 12 months?

“We need to be bolder and louder. Our story resonates with EVERYONE I tell it to – and their usual response is “I didn’t know”… we are Australia’s best kept secret. We are strong businesses that operate with heart. We are better for our members AND for the people who choose to work with us.”

How do you reflect on the progress on gender inclusion in the NME sector? What did your appointment signify for the gains made in the CME sector on gender?

“This is the second role that I’ve been the ‘first female CEO’ in that bank. Yes, I’m proud to be paving a way but I also feel an incredible responsibility to keep fostering talent around me.  Yes – for gender diversity – but also to create an environment where people can thrive just being themselves. That’s how we get true diversity and inclusion. But I don’t want to underplay just how much more we need to do on equity for females.”

Damien Walsh

CEO & Managing Director Bank Australia

The NME report shows impressive revenue and profit gains in the co-ops and mutuals sector over the past year; what is the outlook over the near to medium term for your sector. Are their potential pitfalls that need to be avoided? 

“Despite a highly competitive market and increased regulatory scrutiny, the customer-owned banking sector has continued to perform strongly with growth across net assets, lending and deposits in recent years. Alongside this growth, smaller banks are also experiencing increased funding costs and pressure on margins, and greater customer expectations on products, services and technology. Customer-owned banks continue to face common challenges around economies of scale, replacing legacy technologies, and growing cybersecurity threats. How smaller institutions balance these competing challenges and drive continued improvements in customer experience will be critical to their future success.

With the recent vote in favour of our proposed merger with Qudos Bank, we’re building a better and more sustainable bank with greater resilience. In banking scale is important, so this merger will ensure we are big enough to maintain long-term sustainability while protecting the benefits and value our customers receive for being part of a mutual bank.”

How do your members benefit on a regular basis from being part of the mutual movement? 

“As a 100 per cent customer owned bank, our members are part of a growing and powerful movement of people using their money as a force for good. By prioritising customers, not external investors, we focus on meeting customer needs and creating positive impact on their behalf.

Bank Australia customers have voting rights and a say the governance of their bank. They play a key role on major strategic choices that impact the future of their bank, such as our merger with Qudos Bank. Customer input and feedback also plays a key role in guiding our social and environment impact priorities to the areas they care most about.

As a mutual, we don’t prioritise profit for its own sake. Instead, the profit we make is rooted in protecting the long-term growth and financial sustainability of our bank, and delivering on our purpose. Our profits are returned to our customers in the form of competitive rates, fair fees, quality products and services, and they help us invest in making Bank Australia an even better bank.”

This is the International Year of Cooperatives, how do you hope and expect the co-op and mutual movement will make its mark in Australia over the next 12 months? 

“The mutual movement in Australia plays a significant role in helping educate society on the direct benefits mutuals and co-ops can have on their communities. Being member owned means we are rooted in serving the needs of real people in the real economy. As a sector, mutual enterprises are powerful examples of how to do business in ways that retain the value they generate in the communities where they operate. Over the next 12 months, we hope to see the mutual sector collectively grow awareness of the strengths of our model among more and more Australians.

The mutual movement will need to continue to adapt to external pressures to maintain its ability to generate value and create positive impact. We see the continued strength of mutuals being driven by number of factors, including enhanced technological transformation, maintaining close connection to our communities, and better articulating the benefits of the member-owned model.”

Sheena Jack

Outgoing CEO & Managing Director HCF

The NME report shows impressive revenue and profit gains in the co-ops and mutuals sector over the past year; what is the outlook over the near to medium term for your sector. Are their potential pitfalls that need to be avoided?

“As part of the not-for profit sector of this community, the mutual model’s strength lies in putting people before profits. HCF has had exceptional member growth, but to maintain that trust, we need to keep proving it—through action, innovation, and integrity. As a not-for-profit mutual, HCF is uniquely positioned to reinvest profits back into lower premiums, benefits, services, and experiences for our members—not listed shareholders. That value proposition is resonating now more than ever. But we can’t take our growth for granted. Trust in the health insurance sector is hard-won and easily lost, particularly as Australians continue to face cost-of-living pressures and seek greater transparency and value in their healthcare. And we need to continue evolving—investing in innovation, technology, and new care models that improve affordability and health outcomes. That also means being clear and compelling about the difference mutuality makes, especially as the lines between traditional and disruptor models blur.”

How do your members benefit on a regular basis from being part of the mutual movement?

“Our members aren’t just customers—they’re the reason we exist. Every decision we make has our members at the centre. Being part of a mutual like HCF means members benefit directly from the value we create, from lower premiums, more generous benefits, better customer service, and access to health programs that support their wellbeing. In fact, over the last ten years, HCF has paid out 89 cents in every dollar in premiums to members as benefits on average, compared to the industry average of 85 cents. For 2024 that equated to $139million. We are also rolling out more flexible extras, improving our member reward and recognition program, expanding mental health and preventive care initiatives, and piloting short-stay models that reduce time in hospital without compromising care. We also reinvest through partnerships with the Royal Flying Doctors Services and The Smith Family, and funding Medical Services research tackling some of Australia’s biggest health challenges through our HCF Research Foundation, the largest non-government funder of health services research in Australia, with over $35M awarded in research funding across 160 projects. Importantly our members can have confidence that they are at the heart of every decision we make at HCF.”

This is International Year of Cooperatives, how do you hope and expect the co-op and mutual movement will make its mark in Australia over the next 12 months? 

“This is an important opportunity for our sector to speak with a unified voice and lift our profile. Australians often interact with co-ops and mutuals without realising it—whether it’s their insurer, credit union, aged care provider, food co-ops or even their local health service. We need to use this year to celebrate that diversity, demonstrate our impact, and advocate for supportive policy settings that allow us to compete on a level playing field. That includes addressing outdated regulations and making sure the mutual model is better understood across government and business, and consumers. Mutuals have always served Australians—now more than ever, we need to show the nation just how much stronger communities are when they’re built on cooperation.”

How do you reflect on the progress on gender inclusion in the NME sector? What did your appointment and the appointment of a woman to follow in your steps at HCF signify for the gains made in the CME sector on gender? 

“When I was appointed CEO of HCF in 2017, I became the first woman to lead the organisation in its nearly 90-year history. I felt a strong responsibility—not just to lead well, but to leave the door open wider for those who followed. I didn’t just want to be the first woman to lead HCF—I wanted to make sure I wasn’t the last. That’s how real change happens. The appointment of Lorraine Thomas to succeed me is not just a personal milestone—it’s a sign that progress is sticking. And it reflects a deeper shift across the mutual sector, where the focus on inclusion and equity is increasingly backed by action. But there’s still work to do. Leadership diversity matters—not only because it’s right, but because it leads to better decisions, stronger cultures, and more representative organisations. The co-op and mutual sector has the values—and now, increasingly, the momentum—to lead on this front.”