Co-operatives National Law
What is Co-operatives National Law?
Co-operatives National Law (CNL) is harmonised state and territory for registration of co-operatives (including the Co-operatives Act 2009 in Western Australia, which has a different name but is consistent with the CNL).
This means a registered co-op anywhere in Australia operates under one legislative framework but has a local regulator they have registered with and which is interpreting/implementing that framework.
The process of CNL being adopted by all the states and territories took from 2012 to 2020.
Who does this impact?
Of 1,800 co-ops and mutuals in Australia, about 1,400 are registered co-ops under CNL. They are across all sectors except financial services (financial services businesses must register as a company).
Some examples of co-ops registered under CNL include: CBH Group, Geraldton Fishermen’s Co-op, The Barossa Co-op, Master Butchers Co-op, ILG, Tranby, Yenda Producers and Rapid Clean. There are other organisations like Common Equity Housing Limited or Co-ops WA that have registered co-ops as their members.
In growth sectors like aged care or housing where the BCCM is delivering co-op development programs or working with its members to advocate for greater support for member-owned models, the predominant model is a co-op registered under CNL.
What are the issues with CNL?
There are two basic issues with the CNL:
- It hasn’t been amended in over a decade, so inevitably, there are some gaps that have emerged as the wider business environment and regulatory environment has evolved.
- The legislation is consistent, but the implementation is by eight regulators who have varying levels of resources/expertise/interest in co-operatives. This means co-ops don’t generally receive a level of regulatory support comparable to companies.
What are the issues with CNL that the Modernising Australian co-operatives regulation report focuses on?
The BCCM published the Modernising Australian co-operatives regulation report in January 2025, following the BCCM’s 18-month industry consultation on modernising Co-operatives National Law
The BCCM made 15 recommendations in the report that speak to these two issues above.
They are across all stages of development of a co-op: formation, raising funds and operation/governance, so are relevant both to established co-ops in the BCCM membership and making it easier for new co-ops.
Some examples of recommendations:
- Reducing the legislated time a regulator has to pre-approve rules of a new co-op.
- Explicit provision for online general meetings in the legislation.
- Regulators combining their public registers of information about co-ops into one national, easy-to-access register.
- Regulators publishing national guidance on the requirements for disclosure statements to raise funds in a co-op.
Download our 15 recommendations quick guide.
Read our media alert: Modernising Australian co-operatives regulation.
Next steps
Following a recommendation of the Better Prices, Better Competition inquiry, the BCCM has a strong platform to advocate for a modern regulatory environment for co-operatives and to elevate member-owned business in the minds of federal, state and territory policymakers.
The BCCM’s next step will be to socialise the Modernising Australian co-operatives regulation report with policymakers and regulators to seek a formal review of the Co-operatives National Law, in line with the United Nation’s call for governments to review co-operatives legislation as part of the International Year of Cooperatives 2025.