Media Release

Coalition backs consumers with more choice

ZS 2/18

Senator The Hon. Zed Seselja
Assistant Minister for Treasury and Finance

26 November 2018

 

The Liberal-National Government is committed to backing Australian consumers to have more choice, by ensuring cooperatives, mutuals and member-owned firms are competitive and can access the capital they need to grow. 

Today Assistant Minister for Treasury and Finance, Zed Seselja, released draft legislation on a new capital instrument in the Corporations Act for public consultation. 

“Cooperatives, mutuals and member-owned firms have a proud history in our nation, with 8 in 10 Australians choosing the benefits of member focussed firms,” Assistant Minister Seselja said.

“Recognising the importance of the sector to the economy, the Government accepted all of the Hammond Review’s recommendations to strengthen the mutual sector in providing greater choice and better services by allowing them to raise the capital they need to invest, grow, and compete with investor-owned corporations.”

“This legislation is the second part of a two-phased approach in implementing these recommendations,” Assistant Minister Seselja said.

“Our reforms will mean more opportunities for mutual organisations by allowing them to raise the funds they need to make long-term investments for the benefit of their members. This will enable them to grow their presence in key markets such as banking, insurance and healthcare.” 

“A stronger cooperatives and mutuals sector will provide Australian consumers with more choices and more cost effective options.”

The proposed legislation will allow eligible mutuals the ability to issue a Mutual Capital Instrument and raise the capital they need without the fear of demutualisation.

Stakeholders are invited to view the draft legislation and lodge submissions via the Treasury website by 24 December 2018.

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Media Contact(s): 

Cassandra Choake | 0427 839 164 or (02) 6247 6444