Victorian Nationals endorses new policy to support CMEs

03 August 2016

The BCCM has welcomed the adoption of a new policy by the Victorian Nationals aimed at strengthening the role of co-operatives and mutual enterprises (CMEs) in Australia. The policy calls for wide-ranging legislative reform including new capital raising measures and the establishment of a single national regulator for the CME sector.

Passed by the Victorian National’s annual conference on Saturday, the policy includes initiatives to even up the playing field for CME businesses and to encourage growth and innovation within the sector.

Key elements of the new policy include:

• Commencing the Co-operatives National Law in all states and creating a single national regulator;
• Defining mutual companies in the Corporations Act and legislating for a new equity capital instrument that mutuals can issue to members;
• Requiring knowledge of the CME sector to be a part of the professional accreditation process for accountants, lawyers and business advisers.

Victorian Nationals Senator Bridget McKenzie was a co-proposer of a Senate inquiry into the role of co-operative, mutual and member-owned firms in the economy and who handed down their report in March receiving bipartisan support.

Melina Morrison, BCCM CEO said the new policy recognised the important role co-operatives and mutuals play in regional Australia.

“The Victorian National’s new policy addresses the most important issue facing the sector, namely the need to give CMEs the same opportunities as other businesses to raise capital and potentially unlock billions of dollars of investment.”

“The BCCM welcomes the Victorian National’s new policy and looks forward to working with them on its implementation,” concluded Ms Morrison.

Read the Victorian Nationals policy.
Read the BCCM media release.