Co-operatives and mutuals deliver resilience and growth in uncertain economic conditions

01 July 2026

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The resilience of Australia’s co-operative and mutual sector was in sharp focus during a recent interview with Melina Morrison, Chief Executive of the Business Council of Co-operatives and Mutuals, on Ausbiz’s The Pulse.

Against a backdrop of global economic uncertainty, inflationary pressures and geopolitical volatility, the discussion highlighted the distinctive role that co-operatives and mutuals play in strengthening the Australian economy – and why their contribution is increasingly relevant to policymakers and markets alike.

A resilient business model in uncertain times

Asked about the economic outlook and how businesses are responding, Melina Morrison pointed to the structural strengths of co-operatives and mutuals.

“These are businesses that exist to benefit their members,” she said. “We don’t have shareholders. So in those very inflationary conditions where there is lots of volatility, there’s lots of uncertainty, there are geopolitical shocks coming, we have a very resilient business model.”

The sector’s resilience is borne out in its performance. Australia’s co-operative and mutual sector has continued to record strong revenue growth, demonstrating its capacity to withstand economic shocks while maintaining a focus on member value.

Unlike investor-owned firms, co-operatives and mutuals are guided by a different set of incentives. As Melina Morrison explained, these businesses prioritise continuity of service, quality outcomes and long-term sustainability over short-term returns.

“They are incentivised to think about their users who are also their members and basically their owners,” she said. “The way they think about using capital in the business is very much what is needed to sustain continuity of services, keep high-quality products and services viable for their members and look after their local workforce.”

A significant but often overlooked part of the economy

The interview also underscored the scale of the sector, which is frequently under-recognised in economic and policy discussions.

Co-operatives and mutuals operate across essential services including financial services, health, motoring and agriculture. Many Australians interact with these businesses every day, often without realising it.

“We sometimes say we’re missing in plain sight,” Melina Morrison said. “We are there, but we’re just not thought about when we’re thinking about the economy being comprised of different types of businesses.”

This relative lack of visibility extends beyond public awareness to policy settings. While co-operatives and mutuals are major contributors to economic activity and competition, they do not always receive the same level of policy attention as listed companies.

For the sector, improving awareness is therefore both a communications and a policy priority. The role of financial media in shaping that awareness was a key theme of the discussion.

Driving competition and economic diversity

Beyond resilience, co-operatives and mutuals contribute to a more competitive and diverse economy.

By introducing alternative ownership structures into markets that are increasingly concentrated, they can improve consumer outcomes and support productivity growth.

As Melina Morrison noted, greater diversity in business models helps counterbalance reliance on a small number of large listed firms. This, in turn, strengthens competitive dynamics and expands consumer choice.

These benefits are being recognised internationally. The United Kingdom has committed to growing its co-operative and mutual sector, reflecting a broader understanding of the role these businesses can play in addressing cost of living pressures and market concentration.

“[We need] businesses that are incentivised to help Australians with cost of living pressures,” she said. “They introduce, really importantly, diversity into the economy.”

Housing as a priority reform opportunity

Housing emerged as a key area where co-operatives and mutuals could play a larger role.

In Australia, co-operative housing represents a small proportion of total housing stock. However, international examples demonstrate how the model can be scaled to deliver more diverse and affordable housing options.

Melina Morrison highlighted the potential for co-operative housing to sit between private rental and home ownership, offering greater security and supporting pathways to ownership.

“They create a model of housing that is so valuable to those 30 per cent of Australians that now rely on private rental,” she said.

Co-operative housing can also support workforce needs by providing stable accommodation for essential workers and those on low to moderate incomes.

To unlock this potential, the sector is calling for increased awareness, alongside policy settings that support investment and growth in co-operative housing models.

A case for policy reform and a level playing field

At a national level, the interview reinforced the importance of a policy environment that recognises the unique characteristics of co-operatives and mutuals.

Recent legislative reforms have improved access to growth capital for the sector, allowing co-operatives and mutuals to expand without compromising their ownership structures.

However, further work is needed to ensure a level playing field with other business models.

“What we really need to focus on is a legislative and regulatory environment that puts co-operatives and mutuals on a level playing field,” Melina Morrison said.

This includes recognising the sector’s distinct governance structures and ensuring regulatory frameworks support – rather than constrain – its development.

Over the longer term, BCCM is advocating for a more ambitious national approach to growing the co-operative and mutual economy.

From niche to mainstream

While co-operatives and mutuals already play a significant role in the Australian economy, the interview made clear that their potential is far from fully realised.

“There’s a sense that we should be thinking about this as economic development,” Melina Morrison said.

The sector is well placed to address areas where other business models face challenges in delivering sustainable services – including affordable housing, regional care and essential services.

Positioning co-operatives and mutuals as part of Australia’s economic infrastructure, rather than as a niche segment, represents a shift in both policy thinking and public awareness.

A growing national conversation

The interview reflects a broader shift in how co-operatives and mutuals are being understood in Australia’s economic conversation.

As economic pressures persist and governments look for new solutions to entrenched challenges, the sector offers a proven, scalable and community-focused model.

Increasing visibility – through media engagement, policy dialogue and sector leadership – will be essential to unlocking that potential.