Budget lays the foundations for quality jobs and sustainable growth beyond human resources

04 May 2016

The Business Council of Co-operatives and Mutuals welcomes the measures announced in the 2016 Federal Budget to support employee share schemes, self-employment, and entrepreneurship among youth.

“In today’s gig economy, we are setting people up for repeated joblessness unless they are able to take greater control over their place in the workforce, by becoming co-invested, financially or by other means,” said Melina Morrison, Chief Executive Officer of the BCCM.

The BCCM welcomes the government’s investment of $840 million in a Youth Employment Package to help 120,000 young people into jobs, including $88.6 million to support young people who wish to start their own business. Initiatives include “Exploring Being My Own Boss” workshops to connect young job seekers with the business training, finance and networks they need to develop their innovative ideas into successful businesses. This training must include information on co-operative and mutual models of ongoing co-ownership.

Budget reforms to employee ownership and crowdfunded equities aim to encourage different models of business ownership, but don’t go far enough, Morrison pointed out.

“A recent Senate report into co-operative and mutual enterprises strongly backed the lifting of restrictions on capital raising, allowing billions of dollars of fresh investment to flow into the sector.

“The BCCM is pleased with the overall direction of the budget, but we note that more needs to be done on reducing red tape for people who wish to enter into collaborative and co-owned business relationships,” Morrison said.

“The small business tax breaks improve the bottom line for SMEs, but the co-operative model strengthens their overall market position and long term survival.”

“We look forward to working with government and opposition to ensure that regulation matches intention, unlocking the potential of the co-operative and mutual sector to give the economy resilience and strengthen the social fabric of communities by giving everyone the opportunity to be a job creator.”

The BCCM also welcomed Budget measures in the agricultural sector that support the growth of the co-operative and mutual business model.