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FACT SHEET
Co-operatives National Law (Tasmania) Bill 2014
The Co-operatives National Law (CNL) is a modern regulatory
system for co-operatives, which reduces red tape, creates a
uniform national regulatory framework and provides an even
playing field with other businesses.
The Bill seeks to deliver this system by:
providing freedom to operate on a national basis;
better access to external capital funding;
simplified reporting for smaller co-operatives; and
an accessible modern legislative framework.
Co-operatives are businesses owned and run for the benefit of
their members. Co-operatives are an important part of a vibrant
and healthy economy and provide crucial services to not only
their members but also the community across a range of areas
including health and medical care, agriculture, retail and housing
services.
The co-operative model is very flexible and can be either for
profit or not-for-profit (referred to in the new legislation as
"distributing" co-ops or "non-distributing" co-ops), depending on
the needs and wishes of members. Co-operatives can be a source
of employment or housing, and can provide vital infrastructure or
other shared resource for members.
The CNL contains provisions for the formation, powers and
constitution, and the management and operation of co-
operatives. It also addresses structural events including merger
and external administration, cross-border trade, mutual
recognition, legal proceedings, and other miscellaneous matters.
The new CNL will not make any conceptual changes to the
nature of a co-operative. In fact, section 10 of the CNL specifically
states that the CNL should be interpreted so as to be consistent
with the co-operative principles of the International Co-operative
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Alliance. The new regime will, however, ensure co-operatives are
treated comparatively to other forms of incorporated entities
such as companies or incorporated associations.
Existing co-operatives will be automatically registered under the
new legislation. These co-operatives may, however, need to
consider whether they need to make any minor amendments to
their rules or processes to comply with the new regime.
Under the new two-tiered system, those co-operatives that fit
the definition of a "small co-op" will have the benefit of simpler
reporting requirements. This will ease the administrative burden
of a significant proportion of Tasmanian co-ops.
The legislation is in the form of template legislation, with New
South Wales passing the original legislation. All amendments to
the Co-operatives National Law will be tabled in both Houses of
the Tasmanian Parliament within ten sitting days of their
commencement.
The Co-operatives National Law is supported by national
regulations and model rules.
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